43. Investors Prioritize Returns over Your Ambitions

Venture capitalists usually invest other people’s money and have promised those limited partners high returns within a fixed fund life. That structure pushes them toward large outcomes, rapid growth, and liquidity. Help and advice may be sincere, but when interests diverge, the financial obligation comes first.

Before taking money, understand the fund’s size, timeline, return target, ownership needs, and behavior in difficult companies. Reference-check the investor and make the future you want explicit. Alignment at the optimistic pitch is easy; test alignment under slower growth, an early sale, or a mission-versus-profit conflict.

Original sketch and model by Paras Chopra. Read the source chapter.