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In my little experience, most of the deals I see closing with VCs are because they/we were already linked to VCs through strong trust networks or directly. I se
by wslh 2y ago
In my little experience, most of the deals I see closing with VCs are because they/we were already linked to VCs through strong trust networks or directly. I see more deals that are close just by phoning/messaging someone that following the typical startup funding round that is read on Internet.
Not saying that most of the cases are not hard work from the startup team but saying that if I would have to raise funds I will put laser focus in the people I know instead of trying to reach VCs that are not in my network.
I will repeat this a little bit differently: I see many yes that are related to the team links, not their product or market.
Finally, when I talk about the team, I don't talk about their real capacity to execute but to sell to a VC like selling to an important customer.
- alephnerd 2y ago> if I would have to raise funds I will put laser focus in the people I know instead of trying to reach VCs that are not in my network This is the most common piece of advice all VCs and Founders give. Even YC has called it out on multiple occasions
- wslh 2y agoI don't think the message is clear in the startup industry (yes, industry). The startup industry gives a lot of noise to inexperienced founders (obviously the great majority) making them think the game is more even. The corollary are the following questions: - What a founder without VC connections should do? - How long will it take? Even if they have a super product in mind (not a time machine) they will have an annoying experience pitching VCs who doesn't have any idea of what you are talking about.
- alephnerd 2y agoFair point. I have noticed a drastic lack of good startup advice outside of the Bay Area and Seattle scene. Both those two have very entrenched entrepreneurship networks so information percolates > what a founder without VC connections should do Network, network, network. Finding a VC is the same process as finding your first customer. Sales is a grind, as is running a company. It acts as a filtering function to find seriousish players. > How long will it take? If you raise funding, at least 10-15 years to even get the chance to potentially list or get a high 9 figure low 10 figure acquisition.