I’ve noticed a lot of founders raising capital prefer to have face to face meetings, as opposed to answering questions in writing. Some don’t want to share a deck in advance of a meeting. When you’re fundraising, I suggest keep in mind you are accomplishing different goals. The goal of all communication with a potential investor...
[Continue Reading]The investment committee rejected you; what does that actually mean?
One of the most common ways a venture capitalist rejects you is a variation of, “I love you, I love your company. I brought it up to the investment committee (“IC”)….but they turned it down.” What does that actually mean? Is this the business equivalent of telling a flame, “It’s not you, it’s me”? A...
[Continue Reading]Your startup is running out of cash — now what? Should you pivot or perish?
“Mann Tracht, Un Gott Lacht” (“Man Plans, and God Laughs.”) We hope for the best, but are forced to plan for the worst. Almost all VCs will have companies that fail. The CEO comes to us. She has 3 months of cash left. Existing investors have said they’d be glad to invest…if she gets a...
[Continue Reading]The investment committee rejected you; what does that actually mean?
One of the most common ways a venture capitalist rejects you is a variation of, “I love you, I love your company. I brought it up to the investment committee (“IC”)….but they turned it down.” What does that actually mean? Is this the business equivalent of telling a flame, “It’s not you, it’s me”? A...
[Continue Reading]How VCs structure a syndicate and recruit coinvestors
When I meet with other VCs, family offices, and other institutional investors, the most common question I get is a variation of: “What are the highest-potential companies in your portfolio which are raising now?” and “Which of your companies are raising now and are looking for coinvestors?” I thought it might be helpful to provide...
[Continue Reading]How Star Wars will help you raise capital for your company
When you’re raising money, you’re telling a story. So who are some of the best stories and storytellers? Greek mythology, the Bible, and in modern times, George Lucas and the Wachowski siblings. Star Wars and the Matrix are both modeled on Joseph Campbell’s wildly influential book, The Hero with a Thousand Faces. In The...
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