I couldn't agree more with this post. Get comfortable with a VC that knows your space. You will know quickly that they aren't interested. Also, he makes a valid point to go out and <i>$%</i>%*^ Show something that is getting traction. VC's are number crunchers, they can't predict the future (i.e they won't invest in something you say is going to be huge, especially in today's funding env.)<p>Ask yourself something: Would you risk your business idea on your own credit cards? If not, neither will they. Go risk your own cash and make it work. It shouldn't take much to know if it's going to work or totally bellyflop. Saves everyone a bunch of time. There is enough web knowhow these days to push a simple version of your product out for free. Just do it (it applies to everything, $thatswhatshesaid
What a great post. This is a similar story as mine except it was for a lot smaller (seed) amount to churn out a prototype. For 6 months almost every meeting was at a bar until we closed, and just last month we finally put together a financial model and deck.<p>We hope to launch this month after working on it for 3, and now starting to look for a bigger round. I fully agree with finding investors that fit and not just taking on money to take it. On top of seeding us, our investor turned over a trademark and preliminary patent to the company. I think it's crucial to find a good match if you want to continue loving your company while working with shareholders.<p>Good luck Backupify!
It is hard to think straight when one is out of a job and running on fumes for a couple of months - I do believe that most people will not think in terms of "hey this VC is not good, cos he does'nt get it".<p>Most will think in terms of "how should I rehearse in front of the mirror, so that I knock the VC's socks off".<p>But yes, the article is good reality check - maybe it is much more relevant on your second startup when, usually, money is relatively easier to come by.
whoops, here's the link to the main article and not my comment, haha:<p><a href="http://coconutheadsets.com/2010/03/02/what-i-learned-raising-a-million-dollars-for-a-startup-with-no-business-plan-and-no-financial-projections-while-drinking-a-beer/" rel="nofollow">http://coconutheadsets.com/2010/03/02/what-i-learned-raising...</a>
Interesting post, thanks.
However if, like me, you'd never heard that phrase before - <a href="http://detavio.wordpress.com/2009/05/21/did-you-move-the-needle/" rel="nofollow">http://detavio.wordpress.com/2009/05/21/did-you-move-the-nee...</a>