When you get an email or a call from a VC Firm, the first question to
ask is to get them to introduce themselves. If its an associate – or if
you are getting an email, check up on the site of the firm and see if
their name or picture is listed anywhere – just ignore them. They are
timesinks and just doing their homework for the monday meeting where
they have to present a list of companies.
…It takes us (at the startup centre) atleast three weeks to get a team
back and focused on the product and business, once they get one of these
stupid emails. The team thinks they are already fundable, and someone
from a VC firm reached out to THEM! OMG.
…I came across another startup earlier this week which is chasing a fund
that does typically series B rounds, and the individuals have no
intentions of letting these poor founders know of it, when they are
trying to raise 100K. I told them that they are a later stage fund, but
you know that line investors use “if its a great team and idea, we dont
mind writing a 100K cheque?”, well thats been used and they are dragging
this team around. Teams do over-estimate themselves, cause they are
neither a complete team, nor is the product market validated and they
are losing precious time chasing a wild goose, instead of doing what is
critical for the startup.
Vijay also has an update with advise for VC associates on how they can actually add value to startups and, in the process, to their own career in the profession.
Think twice, thrice before asking teams to work on a document
I have met startups who sit and slog making market projections and research – well, thats kinda your job, isnt it? – and in trying to make business plans with five year projections.…Add Meaningful Value.
You know that there are only four layers in a VC firm, and you are at a dead end job if you are not an entrepreneur because its not easy becoming a partner, climbing up the associate route. You know what will put you up there? Proving that you can work with entrepreneurs, can be a second head, and have a mind to do that. So be selfish. I have been blown away by the value add some of the associates and principals like Anshoo of Lightspeed, Anand Daniel of Accel do for companies – so much so that I ask teams to talk to them. See, how it works?
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India’s First & Most Exhaustive Transactions Newsletter.
