I read an interesting post this morning by John Greathouse -- a renowned SaaS blogger and investor -- "Why Entrepreneurs Hate (Most) MBAs." A couple months back, I had answered a similar question on Quora ("Why Does the Startup Community Hate MBAs?"), so I thought I'd highlight some of those points here. 
I can think of a number of reasons why startups might look suspiciously on MBAs:

1. Sense of Entitlement
 - Some MBAs have a sense of entitlement about how much responsibility and status they should get. When joining a large organization, there is some (limited) basis for truth in that high self-regard. But in a startup context, this is laughable. This also translates to salary expectations, as John points out:
Top MBA programs are expensive and their graduates have astronomical salary expectations. 
2. Enron - We all hate crooks and people without moral compasses. Unfortunately, too many of those people also have MBAs, sullying the reputation of the degree. 

3. VCs - Some startups resent VCs for all the obvious reasons. Many top VCs are MBAs. Therefore, startups resent MBAs. It's not just that they possess the degree, but also that many of them are a different "breed": the business-type. As a result of this negative sentiment, look for VCs loudly -- and sometimes inauthentically --proclaiming themselves as geeks, entrepreneurs and CS majors (even if they can't write a line of code anymore). 

4. Lack of Product Orientation - Startups have to be product and engineering oriented at the outset. Many MBAs don't have technology backgrounds and are making a career switch, and are therefore not a good fit.

5. Risk-Aversion / Un-Contrarian-ness - Startup people are a bit crazy, believing something many sensible people don't. Some MBAs are perceived to be conventional thinkers, and come from a background of high and steady achievement, without huge spikes with creativity and risk-taking. Stanford MBAs, for example, are diverse in many incredible ways, but not so much in undergraduate academic institutions - almost 1/3 of my class came from  Stanford, Harvard, Princeton, Yale and Dartmouth (of course, founders of Facebook, Quora and many other sites also came from those same schools).

Needless to say, none of this is to say hatred or prejudice against MBAs is justified. Indeed, many of Silicon Valley's most highly respected entrepreneurs are MBAs, such as Scott Cook of Intuit and Vinod Khosla of Sun Microsystems. But that is a topic for another blog post.  
 
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I recently had a chance to catch up with Andy Rachleff, who taught me at Stanford GSB. Andy is the CEO of software-based financial advisor Wealthfront, and is of course well known as a founding partner of legendary VC firm Benchmark Capital. If Benchmark's Bill Gurley is the sage of Silicon Valley, surely Andy is its professor. Below, I've shared some of Andy's professorial wisdom, which I thought the broader entrepreneurial community might benefit from.

NH: What advice do you give your students about finding a co-founder?
AR: I've learned from the experience of my former [Stanford MBA] students, that it usually doesn't work to "recruit" a technical co-founder. You need to have a common point-of-view, and find someone who sees the problem as you do, and is equally passionate about solving it. The challenge is that it's really hard to get it right out of the gate. That's because you build a product, and target customer segments sequentially. The odds of that first segment being the right one are low. When it doesn't work, then doubts set in. That's when it's critical that both co-founders are committed to each other and to solving the problem. I haven't always held this view, but I've now come around to it, based on my students' experience.

NH: When should entrepreneurs consider outsourcing product development?
AR: If you're in constant iteration mode -- pre product/market fit -- it's a false economy to outsource. It works better for situations with a defined market and longer development cycles.

NH: Do you advise entrepreneurs to raise seed capital when it's available?
AR: It's a good idea to raise capital when you can, especially if you have a significant other. I used to be against founders selling their stock in a secondary offering. Now, I believe that if you sleep better at night, it's good for everyone. Seed funding is analogous to secondary stock. You're no more macho by not taking a salary. And you'll think more broadly. 

NH: What advice do you have about the chicken-and-egg issue of raising capital and attracting a solid co-founder?
AR: There's nothing wrong with signing up a lead investor conditional on having a CTO join. It's a totally reasonable approach. People with better judgment wouldn't fault you for that. You could have the potential CTO join the investor meeting. 

NH:  What advice do you have on customer development and finding product/market fit?
AR: You have to identify people that have the problem AND that have spent money trying to solve it. It's not enough for them to simply have the problem. Focus on "Who Cares" - a particular group. Develop your hypothesis, and test one hypothesis at a time. You can't just ask a customer what they think. Tell them, and then listen to their reaction. 

NH: What's the best way for an entrepreneur to identity the right investors to target?
AR: The best way is to hire an attorney that's experienced at your stage. Use them to identify which angels are oriented towards your sector. You want to be introduced to those angels, vs cold calling. 

NH: What separates a lead investor from a follower?
AR: A lead investor is someone who knows your space, and probably you, and is willing to sit down and negotiate a price with you. Followers might not want to do that, in order to remain the good cop.

NH: What do you do with negative VC feedback?
AR: Listen to objections. Is the objection to you poorly articulating the problem or a disagreement on the market opportunity? The former is your fault. But if they don't believe in the opportunity, don't waste your time on "missionary" work. Startups can't afford to do that. Preach to the choir. Not everyone needs to like your idea.

Related Posts by Andy
To be a great entrepreneur, you must be non-consensus and right
Entrepreneurs in Silicon Valley love to talk about disruption, though few know what it really means. They mistake better products for disruptive ones. 

Andy Rachleff is president and CEO of Wealthfront, an SEC-registered software-based financial advisor, and teaches at the Stanford Graduate School of Business. Before Wealthfront, he co-founded and was general partner at Benchmark Capital. @arachleff
Nadim Hossain is a SaaS entrepreneur based in San Francisco. He was the CMO at PowerReviews (NASDAQ: BV), and was previously a marketing executive at Salesforce.com. @NadimHossain