If you ask them, most Venture Capitalists will tell you they add value to the startup they invest in, beyond the money: they help by sharing their extensive networks, recruiting top talent, making acquisitions, and taking informed strategic decisions.

Legendary Founders have long acknowledged and praised the help they got from legendary VCs such as John Doerr, Marc Andreessen, Bill Gurley, and Peter Fenton, just to name a few.

But how few are they, precisely? What Vinod Khosla’s point is that a very limited number of investors bring value to the table. His argument: most VCs today have not been through hard times and can’t consequently effectively advise startup Founders on how to manage their companies.

Khosla is a peculiar figure in the VC world. After making a fortune out of his Sun Microsystems adventure, he’s now investing in projects most VCs would not look at due to the extreme odds and long-term view.

What’s your take on this issue? Do VCs add value?

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