Request to 
Don't take TheFunded serious
March 31, 2009. Target Audience: Entrepreneur
I am fervent proponent of transparency in the Venture Capital business which before TheFunded (a website that rates Venture Capitalist firms) did not exist. And I admit that I peruse the site on occasion to see how well my network of VCs stacks up against the interpretations of individual entrepreneurs.
But apart from the publicity prank they pulled for April Fools Day, I am as much against any system (subprime investing) that treats entrepreneurs unfairly as I am against a system that treats VCs unfairly. The latter, in my view, is what TheFunded represents, and here is why:
1/ Lack of transparency
The premium market model that describes the VC community accurately (supply-side) is inversed at TheFunded, and only the demand-side of the fundraising equation has an opportunity to vent their opinion. That can never yield to an objective view of venture behavior and economics, in a similar way just the opinions of VCs cannot.
2/ Lack of trust
Who are these entrepreneurs, are they disgruntled copycats of investment waves that have just passed them by? I don't know, but I do not recommend blindly trusting the opinions from people we don't know. I would not recommend eating at Zagat rated restaurants for the same reason. Simply put: if the trust of the source cannot be established, the trust of the opinion cannot be established.
3/ Statistically irrelevant
Something in the order of less than 1% of the business plans get funded, and therefor is the representation on TheFunded really relevant? It is human nature to emphasize the dismay rather than the success of a fundraising experience (which may only prove to be really successful years later at exit time).
TheFunded should be a marketplace as outlined in our marketplace rules and definitions, and representing the VC and entrepreneur side with equal opportunity. And since it does not, the contents of the site are highly questionable and provides additional distraction, both in terms of false positives and false negatives, to an already in-transparent fundraising process.
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