by Sebastian Mallaby | Brad Feld & Jason Mendelson
Both of these books with all their authors have elucidated very contentious points for me in my quest & pursuits in building my businesses. I will cease to call them startups! Only because the discourses presented within those books have pitied Founders disadvantageously against Venture Capitalists(VCs).
This came clear when I realised; the knowledge VCs have of Founders is insurmountable compared to the measly information we have on the intricacies and tools of operation in their World. VCs, especially in the earliest onsets of a deal, in the POV of a novice Founder: always have an upper hand. This stops commensurately when Founders have detailed knowledge of how VCs operate and what makes them tick. These two books share their secret alchemy ways. They, VCs, tend to stay out of the limelight for purposes of hiding behind the curtain; and this adds to their mystique!
I know when I read a book; and want to savour it by reading it slowly; that it has naturally become my favourite. Can you guess between the two which one was my fastest read even while putting intentional handbrakes to consume it slowly? Stick around to the end to find out.
One goes breadth-wise & the other depth-wise! With the knowledge in each amplifying the other; and puts everything into context.
bimri
For a while now; when I heard of VCs – the tinge left after Sam Altman got ousted from OpenAI came into mind(even though we know it was the research board that did it, and didn’t have any VCs in it at the time); among other legendary ones like Steve Jobs being fired from his own company. Of course there were times when Founders were getting ahead of themselves by not squarely putting into focus the greater good of their enterprises. We all know the notorious extroverted-founders in that list.
VCs care about the company being ran well and efficiently; to get their handsome exits one day. That is the bottom line from these books. Founders only need know that we should be ego-free and VCs must understand the sheer value we encompass into our companies; that the success of seeing our companies grow to serve whatever problems we identified at the onset of it all is our key outcome. Money for impact-based founders is only a by-product! The two aren't mutually exclusive! So, with that understood; I don't see why animosity or divide in tact between Founders & VCs couldn't be more amiable and tolerating of the others' plights. After all, the two should be respectable partners! With due valor added to the other's conscience when everyone reaches the finish line.
To my promise; “The Power Law,” by Sebastian Mallaby was my favourite. I read in a week max, intermittently. Being an author; I know a work well-written the first few sentences read. The tone, pacing, style & history dispensed was admirable. It was event packed with personal stakes taken within each paragraph to make you lurch on to get the unfolding insights! Towards the end; it lost its lustre – for it was all on governments and policies to make USA look supreme. My misgivings on this will be resolved in other works I’ll publish.
“Venture Deals,” took me a few months to finish, I begun it around April, 2024. It is a textbook-like reading. Which if one fancies not finance ramblings or law lucid talks: will get easily lost for enthusiasm. This isn’t to say the book is pointless; it is potent with pure pragmatism in structuring one’s processes in getting and landing a good deal from VCs. By that reason alone: I’d score it higher than “The Power Law.”
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