A massive conversation on social media this week revealed that venture capitalists sleeping through pitch meetings, ghosting founders, and making sexist decisions are far more common than the industry publicly acknowledges. Founders are now naming names and sharing stories that challenge the traditional power dynamic in fundraising, with some of the most stunning allegations targeting partners at Sequoia and other top-tier firms.

What Are Founders Saying About VC Behavior?

The conversation started when Greg Isenberg, a startup podcaster and founder, shared a story on X about pitching to a top three venture capital firm for a $15 million Series A round. "I was once pitching in a board room at a top 3 VC firm for a $15M Series A. 12 people in the meeting. One of the GPs fully fell asleep. Out cold for 30+ minutes. Nobody acknowledged it. Everyone just kept going," Isenberg wrote.

The post struck a nerve. VCs sleeping through pitch meetings became the most commonly reported horror story, with multiple founders sharing similar experiences. Zynga founder Mark Pincus described his own encounter: "I looked at my friend who set up the meeting and asked if i should keep presenting and she said yes. It was 'weekend at bernies' meets Silicon Valley," he wrote.

Mark Pincus

Surprisingly, falling asleep did not always disqualify a VC from investing. Liz Wessel, who co-founded HR startup WayUp and is now a partner at First Round Capital, reported that she received a term sheet from a partner who had dozed off during her pitch. "I once pitched a partnership in 2015 for our Series A where one partner (famous Midas lister) fell asleep & another couldn't stop scowling. Got a call 2 hrs after the IC that they were sending a term sheet over," Wessel wrote.

The prevalence of these stories prompted former a16z partner Arianna Simpson to ask publicly, "Are VCs ok?? Narcolepsy appears to be running rampant".

How Are Founders Responding to Sequoia and Other Major Firms?

Beyond sleeping partners, founders shared stories about VCs signing term sheets and then pulling out last minute, ghosting founders entirely, or never wiring promised money. Some VCs even continued to treat founders as portfolio companies after backing out, requesting updates or asking to serve as references. One founder reported that a VC who had ghosted the deal still wanted a share of post-acquisition proceeds.

The most striking allegations came from Cloudflare founder Matthew Prince, who called out a Sequoia partner directly. "A Sequoia partner passed on Cloudflare because he didn't think a woman could lead a security infrastructure company," Prince wrote, referring to Cloudflare's co-founder and COO Michelle Zatlyn.

Given that Cloudflare is now valued at $87 billion with expected annual revenue of $2.8 billion in 2026, the judgment has not aged well. Sequoia partner Shaun Maguire responded by saying he has always admired Zatlyn and asked Prince to reveal the partner's name. Prince declined, suggesting Maguire could guess who it was.

Prince also shared a story about prominent investor Vinod Khosla, who allegedly suggested that Prince "fire" his co-founders and take their stock. "I think the charitable read was it was a test of my character. But I was so offended that we never spoke again. Literally blocked his number," Prince wrote. He added nuance by acknowledging Khosla's track record: "He's extremely smart/clever. Has been an incredible investor, can't argue with his track record. Just not the personality I'd choose to work with".

Steps Founders Can Take to Navigate VC Meetings

While not all VCs behave unprofessionally, the widespread nature of these stories suggests founders should prepare for the unexpected. Here are practical considerations for founders entering the fundraising process:

• Expect the unexpected: Prepare your pitch to stand on its own even if a VC is distracted, tired, or not fully engaged. Don't rely on the investor's attention to carry your message.
• Document agreements in writing: Verbal commitments from VCs can evaporate. Ensure any term sheet or commitment is documented and signed before celebrating.
• Diversify your investor meetings: Don't depend on a single VC firm or partner. Meeting with multiple investors reduces the impact of any single rejection or ghosting.
• Trust your instincts about personality fit: As Prince's experience with Khosla shows, even successful investors may not be the right cultural match for your team.

Why Is This Conversation Happening Now?

Founders with significant wealth and success are now willing to speak publicly about negative VC experiences. Matthew Prince, a billionaire, framed his candor as having "FU money," meaning he no longer needs to protect relationships with powerful investors. This shift in power dynamics allows founders to call out behavior that was previously whispered about privately.

Greg Isenberg captured the broader significance of the moment: "If you're raising right now, just know: every founder has a story like this. The process is weird. The power dynamic is weird," he wrote. The conversation reveals that the fundraising process is far more opaque and unpredictable than the polished venture capital narrative typically suggests.

Greg Isenberg

Not all founders had negative experiences. Some shared stories of exceptional VCs and even love stories about specific investors. However, the sheer volume of horror stories suggests that poor experiences are common enough that founders should enter the process with realistic expectations about both VC professionalism and the inherent power imbalance in fundraising.