Kalanick: VCs are 'chess enthusiasts,' not masters

Travis Kalanick, the founder of Uber, has shared his critical perspective on venture capitalists (VCs). Speaking on a podcast, Kalanick expressed that while Uber raised substantial venture funding, his experience led him to advise founders against raising from certain firms like Benchmark, referencing a past boardroom conflict. He contends that only about 10% of VCs can 'do no harm,' and an even smaller percentage, an estimated 1%, are truly helpful. Kalanick likens founders to 'chess masters' and VCs to 'chess enthusiasts' who occasionally check the game's progress.

Despite his reservations, Kalanick's current venture, the robotics company Atoms, has successfully raised $1.7 billion, with Andreessen Horowitz leading the round. He advises founders to create competitive bidding wars by presenting a modestly detailed plan. Kalanick also reflected on his Uber departure, emphasizing the importance of avoiding a 'victim mentality' and taking accountability for his own role in past dynamics. He admitted his intense management style, honed from his previous startup Red Swoosh, was an issue, noting he ran Uber, a $70 billion company, with an overly aggressive approach.

Kalanick's sentiments echo recent discussions, with Mark Pincus also sharing grievances about VC interference. Andreessen Horowitz, backing Kalanick's new firm, amplified the podcast episode, highlighting a history of public friction between its cofounder Marc Andreessen and Benchmark's Bill Gurley.