Category: Great Posts
VCs can be real dolts (I know – I’m a VC – and I’m periodically a total knuckhead). Scott Kirsner of the Boston Globe has an outstanding article up on Boston.com titled Entrepreneurs talk back: Straight-up feedback and advice for VCs and angels. In it, he has some choice feedback from entrepreneurs to VCs and angels. For a feel for the article, the first two (of about twenty) are priceless.
– One software entrepreneur told me about a group of angel investors who visited his company, but decided not to invest. Instead, they began pitching their services as consultants. “I cannot stress this enough: The worst thing on this planet is a consultant disguised as an angel/VC. And they are everywhere. Atrocious.”
– A serial entrepreneur who successfully sold his last two companies told me about a meeting last month with a Cambridge venture capitalist who spent most of their first meeting looking at his phone. “Our meeting was apparently an email-checking session,” he wrote. “I wish I’d known; I could have gotten some work done.
Go read them all. And, if you are an entrepreneur and have more, add on in the comments!
Bijan Sabet has today’s Great VC Post titled The Inside Round. In it, he talks about the pros and cons of an inside round which he defines as:
“There are times where a follow on financing does not include a new VC firm. The new round is financed by the current investors. This is known as an “inside round”.”
He also summarizes the historical conventional wisdom:
“It used to be the case that an inside round often meant something was wrong. It meant the company was unable to raise money with a new outside lead investor due poor operating performance, team, market, whatever.
And sometimes that is a correct read on the situation.
But I believe that is no longer universally true.”
I strongly agree with Bijan. At Foundry Group, we are very comfortable with doing inside rounds and describe ourselves as being syndication agnostic. It’s definitely worth wandering over to Bijan’s blog and reading more on this thoughts about The Inside Round.
I tend to stay out of the “VC is dead, long live the VC Industry” discussion but I couldn’t avoid Bill Gurley’s fantastic post titled What Is Really Happening To The Venture Capital Industry? All I can say to this post is “what Bill said.”
Today’s post of the day is from Andy Sack titled Do Seattle VCs suck? In it, Andy states:
“Moreover, I wanted to explore the question: Do Seattle venture capitalist suck as much as their public opinion suggests? In a nutshell, the local venture community is getting a bad rap. However, it’s also easy to understand why entrepreneurs have come to view them the way they do. Here are the pros and cons as I see them.”
Andy currently runs Founder’s Co-op in Seattle. I’ve made and lost money with Andy in the past and he’s had plenty of exposure to VCs (good and bad). Useful stuff and relevant to all VCs (not just Seattle ones).
Mark Suster of GRP Partners in LA continues to crank out great posts, including today’s titled Getting Access to the Old Boys’ Club (how to approach a VC).
I like investing in LA (we’ve got three investments there – Oblong, Topspin, and Memeo) and I’ve got a long term evil plan for the city. In the mean time, I’m going to be speaking at Twiistup 6 in LA on July 30 in case you are interested in coming and hanging out with a bunch of startups in the LA scene.
Mark Suster of GRP Partners is blogging like a fiend and has the best VC post of the day titled Sorry Guys – It’s the Size of the Wave, Not the Motion of the Ocean. Entrepreneurs – wander over and take a look. Plus, he’s got some title alliteration.
Today’s great post is from David Cowan of Bessemer Venture Partners and is titled Israeli Venture Keynote: When Failure Is An Option. Embedded is his keynote presentation from last week at the Israeli Venture Association Annual Conference. While David focused on lessons for venture capital in Israel, they apply broadly to venture capital anywhere in the world, including the United States.