David Heinemeier Hansson has a provocative point of view: he believes that Venture Capital is a time bomb and one of the most harmful things for a new business. He explains that a sudden windfall of money provides start-ups with a false sense of security. VC-injected companies often lose the urgency to create a sustainable, profitable product. These companies often become addicted to venture capital funding, requiring round after round of financing.
Jan 20, 2010