“So you’re a ‘vulture capitalist,’ eh?”
I chuckle every time I hear this belabored phrase.
This phrase is soaked in error. Many liken a vulture to someone riding the coat-tails of others’ successes. Habitually feeling out the pulse of an industry, and jumping aboard a startup when the time is right.
That’s fantastic. I may even agree with that in some cases.
Everyone’s entitled to their own opinion. But, out of jest, wine and deep thought last night, I decided to address this phrase. I don’t have a problem with the meaning that it attempts to capture; what I do have an issue with, though, is that it likens a vulture to something it’s not.
You see, vultures prey on dead animals. They’re simply there to clean up the mess.
Vultures are cleaners.
A “vulture” capitalist, is really a profoundly generous compliment. They clean up dead startups. They’re turn-around artists.
I’d like to propose a replacement for the erratically extravagant term, “vulture capitalist.”
Indeed, I believe there are many vulture capitalists out there. God bless them. They’re doing a wonderful job for the startup community. That is, cleaning up messy startups.
But most VC’s wouldn’t touch a company’s carcass with a ten foot pole. Cleaning up a mess is the last thing on their mind. It takes up too much time and energy.
For VC’s, an ideal scenario would be a YouTube. A giant, beautiful beast that needs a little capital boost, some board-level advice and some company. Some TLC.
The creature looking to meet this need really isn’t a vulture; it’s something entirely different.
So, please, take a crack at it. What’s a more fitting name for a venture capitalist?
{ 5 comments… read them below or add one }
A polar bear. Cute from far away and huggable if you treat him right. Up close, can damage others! Cheers, Marissa
Haha. Simply beautiful.
I honestly don’t hear this term as much as I guess others do. Usually, when I hear “vulture”, it’s accompanied by “fund”, and it refers to a special situations/activist hedge fund (harbinger capital, etc). To liken venture capitalists to vultures, on the whole, kind of seems absurd to me, compared to the far worse financier-predators out there. Don’t get me wrong, I’ve heard of some terrible stories with VCs, but on the whole, taking up a revenue-generating cash-flow positive company’s senior debt facility just to own and turnaround the equity on an intended-on bankruptcy, and then leave the company for dry, is much more “vulture”-ish to me. I think sticking with “venture capitalist” is probably just fine
but i like polar bears, so i guess i’ll second Marissa
Vampire?