Marc Andreessen has posted some thoughtful comments about VCs on his blog in a three-part series titled “The Truth About Venture Capitalists.” It’s always interesting to hear what a non-VC thinks about the VC business. MBA students who want to get into VC will probably find it the most useful. Andreessen is generally favorable about VC — after all KP backed Netscape and that didn’t turn out too poorly for him, now did it? But he throws in some stinging comments here and there, like the following:
“How to make a VC’s head explode, in one easy step:
Point out to her that her compensation from carried interest should be taxed as ordinary income, not capital gains, since she’s receiving a fee for service and it’s not her capital at risk.”
You can read the 1st part of Andreessen’s series here.