It’s not you, VC Success is just broken | Mark Mullen
Mark Mullen argues that the venture capital industry's flawed model, which prioritizes a few outsized "home run" successes and sets unrealistically high growth expectations, often unfairly labels capable founders as failures despite their creation of valuable, sustainable businesses, urging a broader and more inclusive definition of entrepreneurial success beyond VC metrics.
Venture capital (VC) success is often perceived as a reflection of a founder's abilities or the inherent value of their company. However, the reality is that the structure and expectations of the VC industry itself are fundamentally flawed, making success elusive for many, regardless of their talent or effort.
The VC model is built on the premise that a small number of investments will generate outsized returns, while the majority will not succeed. This creates a system where even strong companies and capable founders may not achieve the outcomes they deserve, simply because of the industry's reliance on a few "home runs."
Founders are frequently told that if they don't achieve rapid, exponential growth, they are failing. In truth, the bar for what constitutes "success" in VC is set so high that it is unattainable for most. This can lead to unnecessary pressure, burnout, and a sense of personal failure among founders who are actually building valuable, sustainable businesses.
It's important for founders to recognize that the VC industry's definition of success is not the only valid one. Building a company that creates real value, provides jobs, and serves customers well is an achievement in itself, even if it doesn't result in a billion-dollar exit.
The broken nature of VC success metrics should not diminish the accomplishments of founders. Instead, it should prompt a reevaluation of what it means to succeed in entrepreneurship and encourage the celebration of a broader range of outcomes.