Venture capital backing may be an essential factor in making entrepreneurial ideas reality, but VC firms that think of themselves primarily as financier "owners" buying startups as if their portfolio companies work for them are unlikely to build a track record of good returns.
The fact is, VC investment is not about the VC -- it's about the entrepreneur. Those VCs who think and act as service providers to their entrepreneurs and management teams are more likely to achieve long-term and ongoing success across their portfolios.
Service-oriented approaches emphasize collaboration over individual partner interests, and patience over keeping score on short-term company performance while disregarding the negative impact that can develop in the long term.
