I have read this blog post from Paul Jozefak in which he justifies the reasons why there are VCs who do not use the technology they invest in.
From my perspective, there is another important point he did not make: the role of an investor. Do I expect every shareholder of Porsche to drive one? No. Do I expect every shareholder of WalMart to shop only at WalMart? No.
But do I expect an employee or senior manager of a firm to use the services or products that firm offers or produces? Sure!
Let’s be serious for a second: VCs are nothing but investors. Sometimes I still have the feeling that people do not get that differentiation. VCs are there to maximize returns of their funds. I think it would have been a much better question to ask if VCs have already invested in a company whose products or services they have used before.
But to stick with my examples above: sure, there might be many shareholders of Porsche driving such a car. But there might also be more than one having no clue about cars or Porsche in particular and making the same returns, knowing that the firm is doing the right thing and thus be very successful–financially that is.