The best thing happening to European VC: increased competition.Posted: June 23, 2014
For way too many years European VCs were not really used to competing. For those that were around – and had money – it was pretty cozy times. As we all know, that is a very bad thing. You become stale, you become a bad product for entrepreneurs.
This is changing. Since some time last year we got beaten out of a few rounds pretty badly, we’ve beaten folks out of a few rounds recently. In some cases it was the terms that went for / against us – in some cases the entrepreneurs just preferred us / the other fund to work with.
In each case when we lose out it is an important opportunity to ask ourselves why we didn’t get in and what we should be doing better. Is our product good enough?
I have also seen a few VC folks get a bit whingy about this; as if there was some kind of entitlement to get in to any company you want to.
Those days are gone; good riddance.
So what is going to happen is that increased competition is going to make the good funds better and the bad ones disappear. I guess both things are good things for entrepreneurs.