Shutting down without trying to spook their investors or current portfolio companies. Couching it as taking a break seems clever but I’m guessing any seasoned investors will read between the lines and see that this isn’t working.

The problem with thinking everyone else is wrong (ie how VCs operate) is that usually it turns out they are not. I’m guessing it wasn’t the story telling prowess of lack of deep connections (the common scapegoat for failing) but rather an unappealing offer for investors. Huge risks need huge returns. Bootstrapped companies may be slightly less risky but definitely less upside for investors. If there is no huge payday then investors know that capital will be used better elsewhere.

Im not hating on the thesis. Personally I like bootstrapped businesses much better but there is a reason they don’t attract investors.