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If you have the network it's easy. The hard truth is VC is not a meritocracy -- it's privilege-based. To elaborate a little further, investors of quality tend
by ghc 5y ago
If you have the network it's easy. The hard truth is VC is not a meritocracy -- it's privilege-based.
To elaborate a little further, investors of quality tend to network and pass deals around to each other. Getting enough money round the table in early stages requires these kinds of relationships and so if you meet a few VCs who like you it will turn into dozens of meetings in short order.
- jollybean 5y agoInvestors don't pass around deals 'because buddies' - they pass around deals because they're think they're good. A VC's currency is mostly founded upon the quality of 'what they pass around' so they're using filters, which means it's a 'meritocracy' to the extent investors are investing 'merit' which they definitely believe they are doing. Of course, getting to the first stage/level is also rather challenging, somewhat less meritocratic.
- ghc 5y agoWhen I said "because they like you" I didn't mean as a person. Hopefully people don't misinterpret. In my experience, investors (especially at the seed stage) don't just pass deals around because they're "good". Most of the deals investors pass around haven't been through enough diligence yet to determine whether or not they're good. Investors like to get second opinions from other investors, however, and they'll especially value your perspective if you've invested in a similar deal in the past, or founded a company in a related space. I've seen this from both sides of the table, and I would observe that the "filter" early stage VCs employ is more about whether the founders are engaging, and less about the fitness of a deal.
- redis_mlc 5y ago> Investors like to get second opinions from other investors The most polite description of herd mentality, ever.