Mark Suster (GRP) nails it with his post The Problem with Collecting Logos at Startups. He explains the problem with the following subtopics:
- Leaderless rounds
- Not enough skin in the game
- Nobody’s head on the chopping block
- Fights over follow ons
- Information leaks
He also answers the question “is there any good case for taking a large number of VCs into your deal?” and lists the “top 5 excuses for taking many investors in a round.”
Mark’s punch line is priceless:
“You don’t need logos. Logos are for insecure people. Just like they were in high school when the cool kids had to wear the right logos on their shirts, shorts and handbags. Show strength & conviction. Make the tough decisions and choose the investors with whom you feel the closest fit. Make sure they own enough to be motivated to work with you in good times & bad.”
Bingo. Go read the post.
