Dave McClure of 500 Startups, a seed fund in Silicon Valley, has just announced that he’s going to be the star of an Anthony Bourdain style reality show (it is in fact produced by the same company).
This raises an interesting question for venture fund strategy: Does star power improve financial returns?
This is an important question because Limited Partners in venture firms entrust their capital to the firm’s partners (in this case about $50m or so) with hopes of multiplying that capital. The focus is the money, and by extension, the companies the money flows to. If the focus becomes the personalities managing the money, will that lead to distraction? Is the eye still on the financial ball?
Or, craftily, will Limited Partners say “Hey, that guy is interesting and smart and not afraid to use F-bombs on TV, I want to give him millions of dollars to invest for me!” ?
Will the world’s best entrepreneurs say “I like how entertaining he was with that company he invested in. He deserves to invest in my company more than Greylock or Sequoia or NEA!”?
Dave, I count you as a friend. We need to see each other more. Could it really have been as long as the last clove cigarette encounter? Anyway, I’m interested in your thoughts on this one. OK, I’m interested in other readers thoughts as well. What do you think?