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Tech

Should Venture Capitalists Avoid Publicly Criticizing Startups?

By
Erin Griffith
Erin Griffith
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By
Erin Griffith
Erin Griffith
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July 12, 2017, 10:39 AM ET
Boom With A View by Erin Griffith: Startups and Venture Capital
Illustration by Aleksandar Savic

This article first appeared in Term Sheet, Fortune’s newsletter on deals and dealmakers. Sign up here.

Last week CB Insights asked its readers to vote on a Twitter debate I got myself sucked into.

The background: Phin Barnes of First Round Capital criticized Goodwater Capital, a fellow VC firm, for publishing a detailed analyst report about Blue Apron. (First Round is a Blue Apron investor. Goodwater published a similar report for Snap.)

What is @GoodwaterCap business model? VC working to help their companies go public or analyst firm that does take downs on founders who do?

— Phin Barnes (@phineasb) June 29, 2017

I asked Barnes whether he thinks every VC firm is required to support every startup, and he said, generally, yes: “Those in the industry should support the industry.” I disagreed.

I don't agree with the idea that if you are a vc you are not allowed to criticize and must support / cheerlead or be silent

— erin griffith (@eringriffith) June 30, 2017

So the question, posed informally to the readers of CB Insights’ newsletter, was, “Should VCs avoid public criticism of the industry / startups?”Here are the final results, which show 12% of voters agree with Barnes and 88% believe investors should feel free to criticize:

I expected it to be a lot closer. I understand how close-knit and intertwined the startup “ecosystem” needs to be in order to work. And I’ve been called a “hater” by plenty of thin-skinned founders. (Shout-out to the one that called me a “bat-sh*t crazy b*tch” for writing the truth about his acqui-hire deal! 😘)

But in the era of “open secrets” being exposed amid real questions about Silicon Valley’s culture and ethics, I think many in the industry are now wary of suppressing criticism of any sort. The era of blind cheerleading may be over.

About the Author
By Erin Griffith
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