Venture capitalists in the United States are pitching ideas to entrepreneurs on behalf of time-poor investors, with local funds backing the idea to take off in Australia.
An article in The New York Observer claims American VCs are attempting to lure entrepreneurs with promising start-up ideas, crediting start-up incubator Y Combinator as the catalyst for the trend.
“Most tech VCs would say they swear by [American angel investor] Ron Conway’s adage, ‘We invest in the entrepreneur first, not the idea’, but … VCs seem increasingly comfortable placing a custom order,” the article states.
“The practice was sanctioned in 2008 when… Y Combinator published its start-up wish list.” The article goes on to say that since then, the concept has taken off in the US, with VC firms becoming increasingly comfortable to pitch their ideas to start-ups.
To read the full, original article click on this link: Tables turn as VCs pitch ideas to start-ups
Author: Michelle Hammond
