Wise words from Howard Hartenbaum of August Capital as one of the 40 VCs that contributed to my book. I was translating my book into Russian and wanted to share this little bit. Yesterday, I went through about 50 deals that had come in over the weekend and 10 of them were in the exact same space / category making me think of Howard’s point here.
“I just tend to stay away from companies where there are a lot of direct competitors. If or when several get funded, there is “venture fratricide” as the multiple companies compete uneconomically using their venture cash, resulting in trouble (and sometimes failure) for the entire segment. I’m not saying that one won’t succeed, just that a crowded space makes me nervous (my normal state of mind) to consider an investment.”
If you want to come to Europe this summer there is no better place to be in June than Stockholm and London. Join us!
Stockholm – The Future of Raising Angel & Venture Capital Funding – June 3
Stockholm – The Future of Angel & Venture Capital Investing – June 4
London – The Future of Angel & Venture Capital Investing – June 9
London – The Future of Raising Angel & Venture Capital Funding – June 11