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It seems that for many people, getting a VC term sheet is considered a measure of success. Sometimes it seems like that's the goal they are working for. Often,
by nirvana 15y ago
It seems that for many people, getting a VC term sheet is considered a measure of success. Sometimes it seems like that's the goal they are working for.
Often, however, when I see one of these articles of advice from a VC, I become glad that our business is so capital efficient that we shouldn't need outside investment until we're very profitable.
And even then, I'd seek out a good angel, rather than conventional venture capital. (In my career, I've seen enough bad decisions forced onto founders by venture capitalists first hand.)
The one phrase that will never hold sway on me is "that's the way it's always been done." And, frankly, I think it tells you a lot about someone's motivations when they want to put expenses that they control on your balance sheet.
- joshu 15y agoI think that VCs seem to look heavily for patterns. Partially because they can't take the time to evaluate too much of the deal (it's already possibly a product or business model that's never existed before) so they tend to read unusual, out-of-pattern stuff as higher, non-understandable risk. Often "that's the way it's always been done" ends up like that because someone, somewhere got burned. Not an excuse but often the reason.