Why Comparing VCs to Seagulls is a Funny Yet Accurate Analogy

VCs are like seagulls- they crowd you, shit on you, then fly away.

As a founder, you would have probably heard the commonly used analogy comparing venture capitalists (VCs) to seagulls. It may sound funny at first, but it actually holds a lot of truth in the world of startup investing. In this blog post, we will explore the reasoning behind this analogy and how it reflects the behavior of VCs towards the founders they invest in.

To begin with, the reason why VCs are compared to seagulls is that they are minority investors, which means they do not have managerial control of the company. As a result, they try to overcompensate by exerting their influence in other ways, which can sometimes be detrimental to the company's growth.

VCs tend to crowd founders and try to show their value by constantly giving advice, making introductions, and pushing employees onto the company. This behavior stems from a feeling of insecurity, as they are not the ones actively adding value to the company but instead rely on the founders' efforts.

On the other hand, if things go wrong and the company does not perform as expected, VCs are quick to blame the founders and distance themselves from the investment. This can be damaging to the company's enterprise value, as it sends a message to other investors that there may be underlying issues with the company.

Moreover, VCs tend to have a specific agenda when investing in a company, which may not always align with the founders' vision. This disconnect can lead to friction between the two parties and may result in VCs stopping their support for the company, which can be harmful in the long run.

Lastly, VCs are known for taking risks and trying to find the next big thing. This means that they often invest in multiple companies simultaneously and try to spread their investments across various industries and markets. As a result, they may not always have the time or resources to dedicate to any one company, which can lead to a lack of engagement and support.

Comparing VCs to seagulls may seem like a humorous analogy, but it accurately reflects the behavior of VCs towards the founders they invest in. As a founder, it's important to understand how VCs operate and what their motivations may be, as it can help you navigate the challenges that may arise during the investment process. Ultimately, a successful partnership between a VC and a founder requires open communication, mutual respect, and a shared vision for the company's growth.