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April 02, 2007


Another great post. The single most annoying thing about VC's is there inability to manage expectations. A simple Yes or No is all that is required. However most cannot commit to even that. I've even had a firm Yes, and then it simply evaporated after that.

Now tell me - why on earth as an Entrepreneur would I want to do business with a VC like that? If that's how you treat your customers (the start up's) why do I want to do business with you.

It all starts with mutual respect. I've met a lot of VC's - there are very few I would do business with, simply because they've forgotten what it's like to start and build a business.



Good advice.

Another thing I tell entrepeneurs -- even after you get an offer from a VC, very carefully find out if their vision of the company agrees with yours.

If it doesn't there's a pretty good chance you're either going to end up working for the wrong company (the one that agrees with their vision) or out on the street looking for a job, with your idea tied up in a company whose vision you don't agree with.

I've seen this happen too many times -- the entrepreneur feels his or her vision has been ratified because the money has come in, but the VC was thinking something else when the money was invested.

ask for the no is important just like asking for an order. don't waste your own time hoping

You might have also mentioned that truly interested VCs commonly organize the additional firms to "top up" the round and don't leave it up to the entrepreneur to find some firm (they have never worked with before).

What, however, should one do when you have 2 VCs who have clearly stated "we want to follow any lead investor?" Do you then indicate to other VCs that they could be that lead investor? Or are the VCs expressing interest to follow somehow not up to snuff? In any event, this is a situation I am currently encountering here in Asia (this may be a cultural issue?).

Go for bootstrapping instead of VC funding.

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