3 ms·

Had this happen (random outreach). Led to a series A. Respectfully disagree - I don't think competitors copying is a significant risk early on, compared to run

Had this happen (random outreach). Led to a series A. Respectfully disagree - I don't think competitors copying is a significant risk early on, compared to running out of money whilst trying to hit product market fit.

ThePhysicist 4y ago
Fair point, maybe I formulated that a bit drastically, though I have seen this kind of reconnaissance increase quite a bit recently, so maybe I'm just fed up with it.
upupandup 4y ago
based on your anecdote against hundreds of thousands of founders getting spied on. I've seen it happen. Basically if somebody wants to invest ask them: $ and t+ If they try to dodge or make up excuses, MOVE ON. IF they say if you give me A,B,C and then we can invest, ask them to put them in writing and put an exit fee. If they do not invest, they give you 1% of the proposed amount. Somebody who is serious and has the balls won't waste time. Unfortunately rare. I've wasted a two years of my youth because a VC on HN reached out to me, who ultimately just used my product/coding services. Any dumb fuck can be a VC if they can raise cheap capital. Remember, there is very small group of VCs that know what they are doing. The rest are just in the game to spray and see what sticks on the wall (most of them do not make it during a downturn)
hklgny 4y ago
While both are anecdotes, I think the original warning is the more important one as it's not the one new founders will expect to encounter. Nothing wrong with taking the call, but be aware of the risks and do a bit of homework before you share anything mission critical.
rgrieselhuber 4y ago
It's hard to draw conclusions one way or another because there are so many variables. A good heuristic is that if you aren't speaking with a partner, your risk of having your time wasted (at best) is far higher.

3 ms·

Had this happen (random outreach). Led to a series A. Respectfully disagree - I don't think competitors copying is a significant risk early on, compared to run

by james_impliu 4y ago

ThePhysicist 4y ago
Fair point, maybe I formulated that a bit drastically, though I have seen this kind of reconnaissance increase quite a bit recently, so maybe I'm just fed up with it.
upupandup 4y ago
based on your anecdote against hundreds of thousands of founders getting spied on. I've seen it happen. Basically if somebody wants to invest ask them: $ and t+ If they try to dodge or make up excuses, MOVE ON. IF they say if you give me A,B,C and then we can invest, ask them to put them in writing and put an exit fee. If they do not invest, they give you 1% of the proposed amount. Somebody who is serious and has the balls won't waste time. Unfortunately rare. I've wasted a two years of my youth because a VC on HN reached out to me, who ultimately just used my product/coding services. Any dumb fuck can be a VC if they can raise cheap capital. Remember, there is very small group of VCs that know what they are doing. The rest are just in the game to spray and see what sticks on the wall (most of them do not make it during a downturn)
hklgny 4y ago
While both are anecdotes, I think the original warning is the more important one as it's not the one new founders will expect to encounter. Nothing wrong with taking the call, but be aware of the risks and do a bit of homework before you share anything mission critical.
rgrieselhuber 4y ago
It's hard to draw conclusions one way or another because there are so many variables. A good heuristic is that if you aren't speaking with a partner, your risk of having your time wasted (at best) is far higher.