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A widely discussed thread on X has brought together startup founders sharing negative experiences with venture capitalists, revealing a range of unflattering anecdotes about fundraising interactions.
The conversation was sparked by startup founder and podcaster Greg Isenberg, who described a pitch meeting where a venture capitalist reportedly fell asleep during a presentation for a $15 million Series A round.His post resonated widely, leading many other founders to share similar experiences.One of the most common themes was VCs falling asleep during pitch meetings, with multiple founders reporting similar incidents.Some even noted that despite the lack of engagement, they still received term sheets afterward.
Others shared more troubling stories, including investors who ghosted after committing to deals or failed to wire funds after signing agreements, while still later requesting updates or involvement as if they were active investors.The discussion also highlighted more controversial allegations.
Cloudflare co-founder Matthew Prince recounted an instance where a Sequoia partner allegedly dismissed the idea of a woman leading a security infrastructure company, referring to co-founder Michelle Zatlyn.
Prince also described another interaction with investor Vinod Khosla, in which he felt pressured to consider removing co-founders, an experience that ended the professional relationship between them.
Despite the negative accounts, some founders also shared positive interactions, emphasizing that many venture capitalists are supportive and professional.Still, the volume of critical stories underscores the power imbalance and opacity in the fundraising process.
Participants in the discussion suggested that such experiences are more common than publicly acknowledged, reflecting ongoing tensions in startup fundraising culture and the challenges founders face when engaging with high-profile investors.