Brave Tech World

November 16, 2006

    Rick Segal writes The Post Money Value blog. One of my favorites because of his honesty about the VC business (most other VCs bloggers suck). I met him personally once. He was a straight shooter.

    Today he wrote about EBF: Entrepreneur Brain Flip.

"...An EBF happens when a founder wakes up one day and 'flips' into employee mode.  To me, nothing is scarier then a founder saying 'It's just a job.'  ..."

    This is a great post, worth reading if you're an entrepreneur or investor.

    I agree with everything he said. Founders are founders. It is a risk-reward thing. Don't want the risk? Go work for Google or Microsoft.

    On the other hand of the coin, I see that investors try to swing every single term to their site (that is their job after all).

    Liquidation preferences, negotiate equity stakes that includes the option pool (which is a fantasy), anti-dilution provisions, preferred stock, expenses paid by the company, and the list goes on and on. Rick even wrote a couple of posts about absurd deal terms proposed by investors.

    I wouldn't expect nothing less from an Entrepreneur than his/her blood. But most of the time investors don't treat Entrepreneurs the way they should, and that is the cause of angst and some entrepreneurs thinking like an "employee".

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