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It is comparable to being blacklisted on Google's search listings, there is quite a bit at risk.
Chris Mancini
http://www.propertystampede.com
Have to say, though, very convincing.
Oops.
You wrote: "April Fools. What VC would do this?"
VCs and IPO underwriters always talk to each other before hiring a CEO to take a company public or funding some startup.
There is in fact a Virtual "The UnFunded" going on email channels.
')
And I guess I need to clarify that what I was referring to falls under "reference checking" not defaming, i.e. candid but not demeaning.
:)
If you ever had the privilege of having some more behind-the-curtain encounters with some of the very best VCs, you would know that the very best are very secretive (especially among their peers) about their encounters. Rarely have I heard of a VC signing on a deal because of good reputation from another VC (why didn't that VC invest in that idea then himself?).
Remember how arrogant Larry and Sergey were when they pitched Google? Remember how many VCs turned them down before they got their first round of capital? VCs never regret turning down a bad idea, but they do regret turning down great opportunities. If this site keeps track of such mistakes, I bet there are a lot of investors (LPs that is) who would want a database of that. Even better if VCs offer that information themselves.
Depending on the amount of comments, I would also assume that the whole image of VCs always being so super busy and engaged about their portfolio companies would change. I would take it as a red flag should a VC tell me that he was late for a meeting because he had to write his comments on theunfunded.com.
It is not in a VC's interest to burn bridges with any entrepreneur. The opposite is actually the case. Who knows? Maybe the entrepreneurs need a second funding later on or maybe they changed their idea and are on to something big?
So, after all, a nice April's Fool's joke, but if you had a clearer mindset about the real landscape you would have probably identified that joke earlier (no offense VentureBeat, TC had me on this as well for some minutes :-)
Chris