I’ve lived and sat at the three-sided table of VC, investment banker and entrepreneur in these last twenty plus years, and can’t agree with the article more. Started led out at a VC firm, then went into banking, and finally the startup scene, which is why I advise anyone who will listen to do it completely in reverse.
Looking back, there’s no substitute for living the life of an entrepreneur — go deep into operations, live the fear and feel the sweat. The experience will help one to be a better VC or a banker in every way. Otherwise, when you “advise” your portfolio company’s CEO to “right size” the company by 20 or 30%, you’ll never understand why his pain is so visceral, and you’ll just be looked upon as another ivory-towered asshole.
I once advised the regional head of a VC firm to second his new hires into his portfolio companies for a minimum of half a year as either director of finance or CFO for raw startups, and guarantee that they will come back much better (i.e. credible) VC’s. It’s an opinion I hold even today.