Comments on: VC Seed Funding is Dead, Long Live VC Seed Funding!

By: Astor Place

Astor Place — Tue, 15 Dec 2009 20:17:01 +0000

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

msuster — Sat, 12 Dec 2009 18:03:30 +0000

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

msuster — Sat, 12 Dec 2009 18:01:36 +0000

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

Astor Place — Fri, 11 Dec 2009 14:52:21 +0000

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

Astor Place — Fri, 11 Dec 2009 14:47:52 +0000

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: Venture capital seed investing « davidkirkpatrick

Venture capital seed investing « davidkirkpatrick — Wed, 21 Oct 2009 19:51:33 +0000

[...] the link: Mark Suster, a partner at GRP Partners, has an outstanding post up this morning titled VC Seed Funding is Dead, Long Live VC Seed Funding. Mark started blogging recently and has quickly turned into my second favorite VC blogger [...]

By: With Fresh Funding And A Hollywood PR Firm, Will Ad.ly Define Twitter Advertising? | Technology

Tue, 20 Oct 2009 22:01:26 +0000

[...] GRP Partners’ Mark Suster wrote an interesting blog post on the topic of VC seed funding. In the post, Suster reveals that GRP Partners, where he is a [...]

By: Allan

Allan — Tue, 20 Oct 2009 21:24:15 +0000

Nice post – really looking forward to that next post on referencing VCs. Thanks for curating a useful blog.

By: With Fresh Funding And A Hollywood PR Firm, Will Ad.ly Define Twitter Advertising? | Tech stuff center

Tue, 20 Oct 2009 16:02:26 +0000

[...] GRP Partners’ Mark Suster wrote an interesting blog post on the topic of VC seed funding. In the post, Suster reveals that GRP Partners, where he is a [...]

By: When not to take the cash. | THE DREAM IN ACTION

When not to take the cash. | THE DREAM IN ACTION — Tue, 20 Oct 2009 14:01:43 +0000

[...] Mark Suster discussed the topic of VC seed investing and when it can be a bad thing on his blog, Both Sides of the Table. This reminded me of a [...]