Why “we” need control

“We” as in investors – it’s about speaking in the third person here.

I had this argument a while back. The antagonist stated without hesitation that investors need more than 50% – it was about control, as in controlling the overzealous entrepreneurs. The protagonist (me) suggested that a lot of deals would fail with that mentality. Once the investors (in this case, we were talking angel investors) got control of the company, the game was already over – the company would soon fail. The crux of my argument was in such a deal the motivation would disappear – the entrepreneur would no longer see the carrot, professional management would take over, and the company would slide from there.

Bad way to start out, eh?

Instead, listen to people who get these concepts…

Fred Wilson understands entrepreneurs, and doesn’t even need 20%. Marc Andreessen already applied opinions on hiring folks to run your shop.

Enough said.

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