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Well now. If the investors are so good at what they do then why do the vast majority of the companies they fund fail? As in the case of Techstars which investe
by larrys 15y ago
Well now. If the investors are so good at what they do then why do the vast majority of the companies they fund fail?
As in the case of Techstars which invested in ToVieFor's "Hurricane Melanie" (whose cofounder quit right after getting in) simply being impressed by someone who knows the ropes isn't all it's cracked up to be. Her presentation was said to be of "investment bank quality". Oops. Sure it was a good presentation that's about it though - by her own words.
Investors and incubators love the types that know the ropes and talk a good game and have confidence.
It would be an interesting test to hire a group of actors to play the roles of young entrepreneurs with a so so idea.
And see if the investors actually fund the idea (since they fund people not ideas.) And then say "April Fools".
- Hyena 15y agoThe risk being that the so-so idea ends up succeeding later.
- sp332 15y agoIt's OK if most of them fail, as long as the ones that succeed can cover the losses.
- joshu 15y agoIndeed. I would like to see an article: "How to tell if your potential investors are amateurs."
- 0x12 15y agoSomething close to this happened a while ago with an actress impersonating a founder with some totally ridiculous idea. It took quite a few of the people in the audience until approximately midway into the presentation before their bs meters went off. I wished I remembered the occasion. I will do some searching.
- yarone 15y agoSasha baron Cohen pitched his ice cream glove to a bunch of vc's... http://www.youtube.com/watch?v=nkuOuxRD1Bc http://www.youtube.com/watch?v=nkuOuxRD1Bc (not exactly what you had in mind...)
- 0x12 15y agoYou really should post that.
- grinnbearit 15y agoAre you talking about Rachel Sequoia's "Share the Air"? http://www.youtube.com/watch?v=wyrFWbGiGOc http://www.youtube.com/watch?v=wyrFWbGiGOc
- regularfry 15y agoBecause the vast majority of companies fail. Especially tech startups. The investors know this. They are just trying to be marginally ahead of that curve because the payback on one in ten is astronomical, and more than makes up for the other 9.