TheFunded, the site where entrepreneurs rate venture firms and gossip about fundraising, and posted an open letter to entrepreneurs. (TheFunded has a business relationship with VentureBeat.) VCs are explicitly forbidden from becoming members, and since members can rate other VCs and access private areas of the site, this is a pretty big lapse -- site founder Adeo Ressi says he was "shocked" when he discovered what happened.
Here's the odd thing: Despite the sometimes combative nature of the site (for example, a firm called EDF Ventures has filed suit against an anonymous poster), the VC's post was actually friendly. It sparked some interesting discussion and also led to some tweaking of TheFunded's policies, Ressi says.
In a message titled "Letter from a VC: Seeking Feedback," the anonymous venture capitalist predicts that a shake-out is coming in the industry, with VCs needing supported from both startup founders and LPs (limited partners). Then, the post asks entrepreneurs for feedback on the fundraising process. None of the responses are particularly revelatory so far, but they answer the question in a thoughtful, considerate manner. It's almost enough to bring a tear to your eye.
Ressi says he revoked the VC's membership, but was impressed enough by the dialogue to try to encourage more of it. The site now allows venture firms to post open letters for TheFunded's membership. Previously, VCs could respond to posts, but they couldn't write standalone posts themselves. Ressi also tried to close a loophole by creating the ability to withdraw your membership. So if an entrepreneur becomes a VC, they can, in Ressi's words, "do the right thing" and withdraw.