THE EVILS OF FREE MONEY
The vow “First, do no harm” is associated with doctors, but those exact words aren’t written in the Hippocratic oath. And I’d go so far as to say that such a vow is much better suited for other professionals. Take, oh, I don’t know, maybe investors—particularly the kind who back young, up-and-coming enterprises.
Just imagine how different the world of venture capital would be if firms tried to live by that motto. They’d have to find something else to do with all the money they could no longer heap willy-nilly on entrepreneurs, because there’s no question that it often causes harm—to both the entrepreneurs and to the VCs’ own investors. Studies suggest that 75 percent of VC-backed companies don’t pay off.
Maybe VCs would be forced to
