I wrote before about NPS (Net Promoter Score) and the role it plays as an indicator of customer satisfaction. I am interested therefore to read this from change.vc about their survey of entrepreneurs and their satisfaction with the venture capital product. This is not happy reading for our industry.
There is a lot of food for thought in the article and infographic.
One thing it is worth focusing on is that VC is not for everyone. For companies that can achieve scale or technical breakthroughs rapidly with injections of capital, VC is a great product. These companies are relatively few and far between, and many founders who seek it would be wise not to take it.
This is all part of the maturing process in the industry, and people starting to understand what expectations they should have of each other.
If you think that entrepreneurs would recommend VC financing to a friend or a colleague, you are wrong! At least 70% of entrepreneurs would tell you to stay away from venture capital. Their level of discontent is very high with a Net Promoter Score (NPS) of -64. NPS is used to measure customer loyalty and can be anywhere between -100 (everybody is a detractor) to +100 (everybody is a promoter).