VC and founder stereotypes
I’d like to take a few minutes to explore the cartoonishly pejorative stereotypes that have recently popped up on the web. The embedded slideshows below offer a comical glimpse into the worst behaviors on each side of the table.
Constructive advice for those pitching VCs
For those of us who have been in the venture-backed startup ecosystem for a while, several of the slides above ring true. We’ve all seen bad behavior. Having a laugh is one thing. Better understanding where VCs are coming from is another.
How should entrepreneurs new to the venture funding process think about VC?
Here are my broad brush thoughts on those who have the money you want.
VCs have a job that requires “Professional Attention Deficit Disorder.” These folks review hundreds of pitches a year for a wide variety of products across sold into different markets.
Because VCs flit from product to product and market to market, their initial evaluations are based on the strategic and rhetorical strength of pitches. This is the only means by which they can compare apples and oranges.
They are typically bright and intellectually curious, but you cannot expect any investor to understand the salient aspects of your business from a cold start.
You must bring them information rather than assume that they (1) already know it, or (2) are willing to spend time to figure it out on their own.
Many VCs have a background in engineering or science; a pitch with unsupported assertions is the fastest route to failure. Build your pitch as though you are trying to convince a group of engineers to adopt your solution. Use hard data from credible sources.
The venture capital world is tumultuous these days. Those thriving are working hard. Treat their time as you would want yours treated during a busy work week.
If you are a startup that is having trouble with fund raising, check this out.
