Archive for March 21st, 2011

A classic mistake: documented

March 21, 2011

Documentation is the key; and, if it is the documentation of a mistake, it is much more educational.

Here is a VC about an opportunity they missed:

We made the classic mistake that all investors make. We focused too much on what they were doing at the time and not enough on what they could do, would do, and did do. I am proud that our portfolio is full of companies where we saw the vision before other investors did and backed a great team. But we don’t always get it right. We missed Airbnb even though we loved the team. Big mistake. The cereal box will remain in our conference room as a warning not to make that mistake again.

Here is a long list of emails exchanged (in what turned out to be the documentation of the mistake); have fun!