Comments on: VC Seed Funding is Dead, Long Live VC Seed Funding! http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/ Entrepreneur turned VC Mon, 14 Nov 2011 23:37:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-1592 Astor Place Wed, 16 Dec 2009 02:17:01 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-1592 It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.<br><br>Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward - not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind... I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing. It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.

Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward – not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind… I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing.

]]> By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-12197 Astor Place Wed, 16 Dec 2009 02:17:01 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-12197 It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.<br><br>Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward - not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind... I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing. It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.

Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward – not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind… I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing.

]]> By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-1590 Astor Place Tue, 15 Dec 2009 20:17:01 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-1590 It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.<br><br>Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward - not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind... I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing. It's 100% 'disruptive' for sure. Without openly discussing my product at the moment since I cannot right now, I'm sort of like a person in a position where the world is using gramophone LPs while I possess an 'MP3-filled iPod'. Although this is the case, it still takes time to 'convince' people who still have no clue how MP3 would rule the industry which may seem amusing a few years down the road. I can also make it useful immediately without waiting for the rest of the world to adapt to it.

Yes, I did approach other VC's. But the truth is it would take much longer to build the company and networks from scratch than to collaborate with an existing portfolio company with years of experience and connections. It would benefit me too, rather than me competing with him and maybe pushing him out of business. It could trigger a defense mechanism of frivolous lawsuits from companies that won't accept that technology moves forward – not backwards. Besides, I think diplomacy is a better gesture than the 'thrill' some business owners may have of leaving a trail of broken companies behind… I am in business and feel no joy when others fail, although it doesn't block me from doing my own thing.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-12196 msuster Sun, 13 Dec 2009 00:03:30 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-12196 Yes, probably too brash. Better to approach them saying you have a disruptive technology but not saying that their portfolio company is screwed. If your product is truly innovative and disruptive why not take it to other VCs rather than the one who has something to lose by your presence. Good luck. Yes, probably too brash. Better to approach them saying you have a disruptive technology but not saying that their portfolio company is screwed. If your product is truly innovative and disruptive why not take it to other VCs rather than the one who has something to lose by your presence. Good luck.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-12232 msuster Sun, 13 Dec 2009 00:01:36 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-12232 Your assertion isn't correct. It's not impossible to raise funds pre-revenue. Usually you need to start off with angel investors but many seed investors will invest pre revenue for the right idea / team. Your assertion isn't correct. It's not impossible to raise funds pre-revenue. Usually you need to start off with angel investors but many seed investors will invest pre revenue for the right idea / team.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-1589 msuster Sat, 12 Dec 2009 18:03:30 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-1589 Yes, probably too brash. Better to approach them saying you have a disruptive technology but not saying that their portfolio company is screwed. If your product is truly innovative and disruptive why not take it to other VCs rather than the one who has something to lose by your presence. Good luck. Yes, probably too brash. Better to approach them saying you have a disruptive technology but not saying that their portfolio company is screwed. If your product is truly innovative and disruptive why not take it to other VCs rather than the one who has something to lose by your presence. Good luck.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-1588 msuster Sat, 12 Dec 2009 18:01:36 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-1588 Your assertion isn't correct. It's not impossible to raise funds pre-revenue. Usually you need to start off with angel investors but many seed investors will invest pre revenue for the right idea / team. Your assertion isn't correct. It's not impossible to raise funds pre-revenue. Usually you need to start off with angel investors but many seed investors will invest pre revenue for the right idea / team.

]]> By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-12231 Astor Place Fri, 11 Dec 2009 20:52:21 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-12231 So basically, its nearly impossible to get investments for a fully new project with no revenue history? Such a pity... I have friends working on some very interesting software projects that sound more promising to me than a lot of projects I find in VC portfolios. This means innovative people like this have zero chance to move forward unless they have their own source of funds? So basically, its nearly impossible to get investments for a fully new project with no revenue history? Such a pity… I have friends working on some very interesting software projects that sound more promising to me than a lot of projects I find in VC portfolios. This means innovative people like this have zero chance to move forward unless they have their own source of funds?

]]> By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-12195 Astor Place Fri, 11 Dec 2009 20:47:52 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-12195 I just contacted a VC about their portfolio company. I have a product which would make their portfolio company's product obsolete, so I proposed a possible collaboration. If my product reaches the market they would stand the risk of losing half of their annual revenues within a three year period. <br>Was my suggestion brash? I just contacted a VC about their portfolio company. I have a product which would make their portfolio company's product obsolete, so I proposed a possible collaboration. If my product reaches the market they would stand the risk of losing half of their annual revenues within a three year period.
Was my suggestion brash?

]]> By: Astor Place http://www.bothsidesofthetable.com/2009/10/18/vc-seed-funding-is-dead-long-live-vc-seed-funding/comment-page-2/#comment-1586 Astor Place Fri, 11 Dec 2009 14:52:21 +0000 http://www.bothsidesofthetable.com/?p=1146#comment-1586 So basically, its nearly impossible to get investments for a fully new project with no revenue history? Such a pity... I have friends working on some very interesting software projects that sound more promising to me than a lot of projects I find in VC portfolios. This means innovative people like this have zero chance to move forward unless they have their own source of funds? So basically, its nearly impossible to get investments for a fully new project with no revenue history? Such a pity… I have friends working on some very interesting software projects that sound more promising to me than a lot of projects I find in VC portfolios. This means innovative people like this have zero chance to move forward unless they have their own source of funds?

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