| Topic Name: |
VC Consulting |
| Message Name: |
Weak future |
| Date Posted: |
04/04/2001 |
| In Reply To: |
What are your thoughts on this: I may have an offer to work with a Venture Management Consulting Co. Basically these guys work with VCs to assist their partner companies with all the complex issues that all startups face and help them integrate their service providers. I came from big-5 and start up company and this seems pretty cool. Any thoughts would be appreciated. |
| Message: |
Venture consulting firms were a phenom of the recent market activity. VC firms were outsourcing their responsibilities to consulting firms because they were stretched in a crazy market. The market has slowed down, all vc partners are re-engaging with their healthy portfolio companies and the outlook for vc consulting firms is not strong.
If this is your only avenue into working with startups and/or the vc community - go in with your eyes open. You may have to be prepared working for startups that can't pay you or scrambling to raise dollars for fee-based compensation. Both are extremely risky in the current market environment.
The vc consulting firm that I have knowledge of is based in Atlanta. They got caught up in consulting for very weak business ideas and their rep is "stained" because of it.
I run a fund in the Southeast and would NEVER consider shopping out services to a vc consulting group in this market. Like "incubators", I think this is a model that won't last.
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