I’ve been told by folks, who purportedly should know, that the most successful drug dealers do not use their own product. In the same vein of thinking, I’ve often wondered what the statistics are re: venture capitalists. That is to say, who are the most successful early-stage investors: former entrepreneurs or non-entrepeneurs who never used their own product?
Are there any statistics on this? What percentage of early-stage tech VCs are in fact former entrepreneurs? What percentage of VCs have raised money for their own early-stage tech companies? Are these ex-entrepreneur VCs better or worse early-stage investors over time than their counterparts who were never entrepreneurs?