Paul Graham

Dumb Money

Dumb Money I don’t have a counter cliche to Fred’s two-for-one this week on Passing the Hat and Ponying Up, but I’ll counter with a different, somewhat related Fred cliche that I was reminded of today when reading Paul Graham’s essay entitled A Unified Theory of VC Suckage (form your own opinions of it, but it’s nothing if not thorough and experience-based). There’s nothing worse than dumb money backing a dumb idea or management team. The dumb idea or team can destroy an emerging sector pretty quickly, and the dumb VC behind the deal will just keep ponying up.  For the record, the converse is also true — there’s nothing better than smart money behind a great idea and solid…