This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Tech's Smart Money, Dumb Money and Worst of All: Malignant Money

Many venture firms style themselves as entrepreneur-friendly. Some truly are. But too often they act as though their real allegiance is elsewhere -- their limited partners, their desire to be associated with the next Facebook (FB), the hope to look smart in front of other venture capitalists. It's regrettable that TheFunded, a Yelp (YELP) for venture firms, has receded in the last few years. Hopefully we'll find new mechanisms to call malignant investors to account.  

In the meantime, entrepreneurs must beware of malignant capital. It can come with brand names, high IQs, and great Rolodexes. But unlike passive capital or the dreaded "dumb money," it can severely undermine great companies.

Dan Mindus is a FundersClub Panel Member. He is also an Investment Director at CIT GAP Funds, where he manages initial company screening, due diligence, and deal structuring. Dan serves at the board level on 15 CIT GAP Funds portfolio companies. Dan is also the Founder of NextGen Angels, an angel club for DC area investors who are 40 and younger. In 2013 Dan was included in Washingtonian magazine's list of 100 DC Tech Titans. Dan started his career at the Gerson Lehrman Group, an investment research firm in New York City. Dan holds a BA from Yale and an MBA from Harvard Business School. 

To learn more about startup investing visit www.fundersclub.com.

>>Read More: Jim Cramer: 3D Systems Is Just Duplicating Stock

>>Read More: Apple Buys Beats: What Wall Street's Saying

>>Read More: Apple and Tim Cook Critics, It's Time to Shut Up

>>Read More: Sozzi: 5 Secrets Costco Uses to Drive Profits for Investors

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs