Taking VC Advice
On the whole, I am a fan of warning labels. Those big, bold, skull and cross-bones, death curse type of warnings tend to have the appropriate behavioral effect in people. This is why I am an advocate for warning labels on any advice dispensed by venture capitalists.
This is not to say all VC’s provide poor advice. Folks like Fred Wilson and Brad Feld and the folks at Spark Capital to name a few, have demonstrated a healthy bit of humility, knowledge, and insight in their blogs which clearly emanates from clear thinking and a sincere focus on entrepreneurs. Then there are the majority of VC’s that are simply clueless tools with blogs that resemble something hashed together by machines.
The latest idiocy comes via a blog post about naming companies. As an aside, who the hell puts their blog under a News & Events tab? I should do a follow-up post on the atrocious state of VC websites and why VC would be better off not having a blog. Anyway, back to the original topic, this piece of dreck demonstrates everything that is wrong with most advice doled out by VC’s.
First, it starts out with some lame story to start things out that is off-topic. The said topic is “naming one’s company, yet the author gets all twisted up by a singular branding element with poor grammar. Folks, in a world of texting and other assaults on grammar, no one is noticing this except English teachers and uptight VC’s. Second, the advice is overly broad. There is no meat to read, no useful examples, and no specifics on how to go about putting these five points into action. Third, it is just plain wrong on several fronts. You have the specious example of the Saturn car brand that is as much urban myth as the Chevy Nova story. A name like ShopBooks might actually be an outstanding name as demonstrated by the successful strategy of CSN Stores to use descriptive product names for web domains as an SEO tactic to guide online customers to their various ecommerce sites. Fourth, there is nothing mentioned at all about domain name considerations, mobile app store product names, search engine optimization, and the like, which all weigh heavily on name choice.
The biggest sin however in the post and with most VC advice in general is the sin of omission. There is nary a single link to other sources or the inclusion of useful information from other authorities on the subject. In the myopic view of most VC’s, they cannot be bothered because they apparently have all the answers. It is the smartest man in the room syndrome. I personally find it hard to take any advice from someone that thinks they know it all. The best advice comes from people that are wise enough to understand the limits of their knowledge and perspective. If you listen to such people, you will hear them probe and question much more often then they will pontificate.
If you really need decent advice on naming your startup, most VC’s do not have a clue. Read this older Paul Graham essay instead on naming startups (and the discussion on Hacker News) and the accompanying piece on nominology. I have also waded into this discussion on previous occasions. If a VC is pushing you to change your name, respectfully listen to what they have to say, but trust your own judgment as to works long-term.
As with all advice, take it in but trust your gut. Understand the source of the advice, their frame of reference, and any potential conflicts of interest. Investors are not your friends and generally will have an agenda that does not square with that of the entrepreneurs, so take their advice with a healthy dose of salt.
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