Comments on: I met with an investor, what happens next? http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/ Entrepreneur turned VC Sat, 13 Mar 2010 15:13:12 -0600 http://wordpress.org/?v=2.8.3 hourly 1 By: What Makes an Entrepreneur? (1/11) – Tenacity http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2478 What Makes an Entrepreneur? (1/11) – Tenacity Tue, 15 Dec 2009 15:25:16 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2478 [...] related articles for you if you haven’t read them related to tenacity: - How to follow up with a VC - How to build relationships with a VC Share and [...] [...] related articles for you if you haven’t read them related to tenacity: – How to follow up with a VC – How to build relationships with a VC Share and [...]

]]> By: What Makes an Entrepreneur? (1/11) – Tenacity | CloudAve http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2474 What Makes an Entrepreneur? (1/11) – Tenacity | CloudAve Tue, 15 Dec 2009 14:18:05 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2474 [...] related articles for you if you haven’t read them related to tenacity: - How to follow up with a VC - How to build relationships with a VC (Cross-posted @ Both Sides of the Table)Posted Under : [...] [...] related articles for you if you haven’t read them related to tenacity: – How to follow up with a VC – How to build relationships with a VC (Cross-posted @ Both Sides of the Table)Posted Under : [...]

]]> By: PK http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2374 PK Sun, 13 Dec 2009 20:36:24 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2374 I do understand the cautions and I do agree that one person may not fill all shoes. Personal effort certainly tells of the capacity of a person but not everyone are attention hawks. I guess one would have to value how a person reasons if they are capable more than an actual track record. Now in the recession, where is the skill level of all these A-class CEO's who are forced to file Ch 11 for their huge corporations? So many companies have folded even with the best CEO's in the helm demonstrating they can't handle crisis no matter how great their CV is.<br>Look at some of the biggest brands like Microsoft, Apple, Oracle, Intel, HP, Dell, IBM, GE, Wall Mart, Starbucks, and Disney. All were run by founders with no prior CEO experience and probably very little track record of their capacity. Even Google and Yahoo got to the execution stage of a proven model before a professional CEOs joined. A lot can be achieved hiring the right employees, as long as the executive has some level of good common sense. <br>Thanks for the input, by the way. I do understand the cautions and I do agree that one person may not fill all shoes. Personal effort certainly tells of the capacity of a person but not everyone are attention hawks. I guess one would have to value how a person reasons if they are capable more than an actual track record. Now in the recession, where is the skill level of all these A-class CEO's who are forced to file Ch 11 for their huge corporations? So many companies have folded even with the best CEO's in the helm demonstrating they can't handle crisis no matter how great their CV is.
Look at some of the biggest brands like Microsoft, Apple, Oracle, Intel, HP, Dell, IBM, GE, Wall Mart, Starbucks, and Disney. All were run by founders with no prior CEO experience and probably very little track record of their capacity. Even Google and Yahoo got to the execution stage of a proven model before a professional CEOs joined. A lot can be achieved hiring the right employees, as long as the executive has some level of good common sense.
Thanks for the input, by the way.

]]> By: msuster http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2303 msuster Thu, 10 Dec 2009 15:59:28 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2303 I respectfully disagree with you. Great product builders to not always make great company builders. Great company builders know how to get press, land customers, hire senior people, raise capital and all the myriad of things required to be a well rounded individuals. All of these things are packaged together in the fund raising process and if you don't have what it takes to get through this process chances are you don't have what it takes to build a huge company. This is not always the case but it is a good general indicator. Harsh, but true. I respectfully disagree with you. Great product builders to not always make great company builders. Great company builders know how to get press, land customers, hire senior people, raise capital and all the myriad of things required to be a well rounded individuals. All of these things are packaged together in the fund raising process and if you don't have what it takes to get through this process chances are you don't have what it takes to build a huge company. This is not always the case but it is a good general indicator. Harsh, but true.

]]> By: PK http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2285 PK Wed, 09 Dec 2009 21:24:17 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2285 Exactly 'where' are all these VC's you can actually call up and keep updated with, or get advice from? I find they are mainly shielded by a small receptionist who constantly avoids you meeting or getting in touch with the VC no matter how often you try. Exactly 'where' are all these VC's you can actually call up and keep updated with, or get advice from? I find they are mainly shielded by a small receptionist who constantly avoids you meeting or getting in touch with the VC no matter how often you try.

]]> By: PK http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-2286 PK Wed, 09 Dec 2009 21:11:42 +0000 http://www.bothsidesofthetable.com/?p=941#comment-2286 Question: working on a new business project, who on earth has the time with this seeming 24/7 marketing tactics and scheeming? Sounds like a full time job! I know some great people working on really interesting projects and they barely have time off to meet friends. To spend this much time and effort just to give people with funds the chance to earn huge chunks of profits on someone else's hard labor?<br>Some people are inventors and developers, not the 'Paris Hilton' of self-promotion for investment networking. Perhaps this is why so few investment deals actually end in a pay off... Maybe they need to focus on trying to see the potentials more than looking for people who are experts in self-promotion. Question: working on a new business project, who on earth has the time with this seeming 24/7 marketing tactics and scheeming? Sounds like a full time job! I know some great people working on really interesting projects and they barely have time off to meet friends. To spend this much time and effort just to give people with funds the chance to earn huge chunks of profits on someone else's hard labor?
Some people are inventors and developers, not the 'Paris Hilton' of self-promotion for investment networking. Perhaps this is why so few investment deals actually end in a pay off… Maybe they need to focus on trying to see the potentials more than looking for people who are experts in self-promotion.

]]> By: msuster http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-1072 msuster Thu, 01 Oct 2009 19:48:00 +0000 http://www.bothsidesofthetable.com/?p=941#comment-1072 Oh, boy. Sorry to hear that. That really sucks. Not that it matters now, but did you have a term sheet? In the future be careful about over investing until you have a term sheet. Most quality VCs will tell you where you stand once you have a term sheet (or earlier if you push hard). I don't know that stats but I have to believe 80% of early-stage deals that get to term sheet close. Lower for later stage deals because more pops out in due diligence.<br><br>As for "what now?" Depends on your financial resources. If you're completely tapped then slash costs quickly to exist on low burn. Try to find some angel, seed or friends & family money quickly. May be hard. Impossible to advise without more details.<br><br>If you have more time it is best to get out to other professional investors quickly. Some other thoughts:<br>- get a great lawyer involved. Not for the past but for the future. They can tell you your viability of funding and who to approach. Depends where you live. For simplicity I'll tell you that DLA Piper has a great national practice and a Venture Pipeline group that helps companies.<br>- get a trusted investor to give you an honest assessment of your business - no holds barred. If the feedback is bad (and comes from multiple sources) then be very careful about spending going forward. If the feedback is good you obviously have more options.<br><br>Good luck to you. I hate to hear stories like that. Oh, boy. Sorry to hear that. That really sucks. Not that it matters now, but did you have a term sheet? In the future be careful about over investing until you have a term sheet. Most quality VCs will tell you where you stand once you have a term sheet (or earlier if you push hard). I don't know that stats but I have to believe 80% of early-stage deals that get to term sheet close. Lower for later stage deals because more pops out in due diligence.

As for “what now?” Depends on your financial resources. If you're completely tapped then slash costs quickly to exist on low burn. Try to find some angel, seed or friends & family money quickly. May be hard. Impossible to advise without more details.

If you have more time it is best to get out to other professional investors quickly. Some other thoughts:
- get a great lawyer involved. Not for the past but for the future. They can tell you your viability of funding and who to approach. Depends where you live. For simplicity I'll tell you that DLA Piper has a great national practice and a Venture Pipeline group that helps companies.
- get a trusted investor to give you an honest assessment of your business – no holds barred. If the feedback is bad (and comes from multiple sources) then be very careful about spending going forward. If the feedback is good you obviously have more options.

Good luck to you. I hate to hear stories like that.

]]> By: Laurel http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-1066 Laurel Thu, 01 Oct 2009 17:12:46 +0000 http://www.bothsidesofthetable.com/?p=941#comment-1066 My husdband found an investor and while awaiting the funds, the investor told him to get all the work going, when all the work was done, and after numerous calls and him saying hes still in and not backing out, he said, no, hes not financing him, now we are one hundred thousand into it, and are devasted,what should we do? My husdband found an investor and while awaiting the funds, the investor told him to get all the work going, when all the work was done, and after numerous calls and him saying hes still in and not backing out, he said, no, hes not financing him, now we are one hundred thousand into it, and are devasted,what should we do?

]]> By: msuster http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-1040 msuster Tue, 29 Sep 2009 22:38:27 +0000 http://www.bothsidesofthetable.com/?p=941#comment-1040 Aditya, unfortunately as I said, "it's a bit like art - you know it when you see it." That said, some guidelines. 1. Create pleasant "excuses" to contact your VC such as intro'ing them to entrepreneurs. Find out which events they'll be out and create "fortuitous" reasons that you see them. Send occasional,short emails with updates on your progress but not immediately asking for a meeting or follow up. And try to find a way to loop them on the phone. VC's are sinking in email. Clever people find alternate ways to get to them. If you're a really charming person you'll likely get away with being a bit "cheeky" as we used to say in the UK. If you know yourself well and you know that you're not Mr. Suave then I recommend one of the fortuitous approaches. Good luck. Oh, and one more rule. In life I always recommend taking more chances, not less. Sometimes that means you force some "no's" but I'd rather see that than long drawn-out maybes. It's what i look for in entrepreneurs. Aditya, unfortunately as I said, “it's a bit like art – you know it when you see it.” That said, some guidelines. 1. Create pleasant “excuses” to contact your VC such as intro'ing them to entrepreneurs. Find out which events they'll be out and create “fortuitous” reasons that you see them. Send occasional,short emails with updates on your progress but not immediately asking for a meeting or follow up. And try to find a way to loop them on the phone. VC's are sinking in email. Clever people find alternate ways to get to them. If you're a really charming person you'll likely get away with being a bit “cheeky” as we used to say in the UK. If you know yourself well and you know that you're not Mr. Suave then I recommend one of the fortuitous approaches. Good luck. Oh, and one more rule. In life I always recommend taking more chances, not less. Sometimes that means you force some “no's” but I'd rather see that than long drawn-out maybes. It's what i look for in entrepreneurs.

]]> By: Ray http://www.bothsidesofthetable.com/2009/09/20/i-met-with-an-investor-what-happens-next/comment-page-1/#comment-1039 Ray Tue, 29 Sep 2009 22:11:23 +0000 http://www.bothsidesofthetable.com/?p=941#comment-1039 I'd love to know the answer's for Aditayavempaty's question too. For my case, numerous times our company was told to wait and we could wait just fine but then when we wanted to get things started again, we were not fully sure if our email or call could push the VC over the edge or not especially when it is repeated few times. I'd love to know the answer's for Aditayavempaty's question too. For my case, numerous times our company was told to wait and we could wait just fine but then when we wanted to get things started again, we were not fully sure if our email or call could push the VC over the edge or not especially when it is repeated few times.

]]>