“Barnacles” – a new cartoon that illustrates how many new venture firms have set themselves up with the sole strategy of trying to get into the same deals as Tier 1 venture funds. Characteristic of this behavior is the mad rush to get into a ‘hot’ new startup’s investment round when the likes of Andreessen Horowitz or Sequoia are known to be involved. This behavior can result in dumb capital getting into a startup, which over time has an impact on board decision-making and getting consensus on restructuring/exits from the investors. As an analogy, ships that spend most of their time in the water have to contend with tiny plants and animals attaching themselves to the hull beneath the waterline. Not only does this marine growth slow down a vessel’s speed, but over time organisms can penetrate the hull and damage it. #venturecapital, #startups, #siliconvalley

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