Consensus investing is bad

Consensus investing is bad.

In venture capital, almost every investor rejects every deal. The consensus on every deal is almost always no.

So why does almost every venture firm require a consensus to be built to invest?

It encourages investment in deals that everyone quite likes rather than ones somebody loves. It encourages politics rather than collaboration.

You absolutely should listen to the opinions of others before you invest. You absolutely need a model where, after listening, you can have the courage of your convictions.

#founders #startups #venturecapital #buildinginpublic #investinginpublic