Guy Kawasaki makes The Venture Capital Aptitude Test (VCAT):
"The three worst backgrounds for a venture capitalist are management consulting, investment banking, and accounting. Management consulting is bad because it leads you to believe that implementation is easy and insights are hard when the opposite is true in startups. Investment banking is bad because it leads you to believe that everything can be reduced to cells on a spreadsheet and that companies should be built for Wall Street, not customers. Moreover, investment bankers are oriented towards doing deals, not building companies. Accounting is bad because it leads you to believe that history not only repeats itself, it predicts the future."I believe that while a lot of Guy is saying comes from first hand experience, isn't the above statement too much of a generalisation?
What is the latin word for such a fallacy of reasoning?
Finally he trains his guns on MBAs
The downside is that earning this degree (and I have one) causes most people to develop the hollow arrogance of someone who’s never been tested. All told, the downside of an MBA outweighs the upside.
So according to Guy the good backgrounds for being a good VC is Engineering and Sales.
I'm not too impressed to agree with him.
But what the hell do I know....I'm just a management consultant !