Cold callers needn’t bother. In the parlance of tech investing, “warm” introductions involve a third party’s recommendation, and to tech writer Del Johnson, that’s a recipe for exclusion. Venture capitalists swear by this practice to determine whose innovation gets their money, but Johnson maintains that the VC community is elite to the extent that 40 percent of its members attended either Harvard or Stanford.
How does it affect the industry? By limiting their networks, the drivers of technology aren’t seeing much beyond the ideas that their like-minded competitors see. Answering a few outside appeals for funding might, Johnson argues, provide the edge they’re looking for.