If you've ever wondered whether venture capitalists make mistakes and pass up awesome start-ups, here's your answer: YES.
Fortunately for us, the San Jose Mercury News isn't letting them forget it. The Silicon Valley paper has a round-up today of the biggest deals that VCs let slip away—and it's enough to make an investor a little nauseous:
-Says the VC who passed on eBay regarding his first impression of the business: "'Stamps? Coins? Comic books? You've got to be kidding. No-brainer pass.'" (Although, to be fair, it was pitched as an "online swap meet" with payments made on the honor system.)
-A Seattle-based VC turned away Howard Schultz after his Starbucks pitch, and explains his neg this way: "'A guy walks into your office in the late 1980s and says he wants to open a chain of retail shops selling a commodity product you can get anywhere for 25 cents, but he will charge $2. Of course, you listen politely, and then fall off your chair laughing when he leaves.'" Er, who's laughing now?
Been slighted by a VC firm yourself and feel like indulging in a little more schadenfreude? Check out Bessemer Venture Partner's "Anti-Portfolio," where they list all the now-successful businesses they mistakenly denied.
"This long and storied history has afforded our firm an unparalleled number of opportunities to completely screw up," says their website.
Judging from the list—which includes HP, Apple, Google, and FedEx—we couldn't agree more. Don't cry too hard for them though. These are the guys behind companies like Skype and Staples.
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