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> Then in the fall of 2011 we failed to close a major financing round from the US. We basically had a deal with a top-tier San Francisco based VC. Our guys flew
by mrkurt 14y ago
> Then in the fall of 2011 we failed to close a major financing round from the US. We basically had a deal with a top-tier San Francisco based VC. Our guys flew over to meet them at least two times. We (as a company) spent a lot of time on that financing round. We thought we would be able to close the deal, but something totally different happened. They stopped all communication with us. Suddenly. No explanations. No apologies. Nothing. We were in trouble.
Stuff like this is why I'm thankful for YC. Understanding the mechanics of raising a round has been incredibly helpful when evaluating what's actually going on. 2009 me would have thought two meetings with a VC was basically "a deal", 2012 me is much more capable of realistically evaluating progress towards a term sheet.
- soneill 14y agoI think that's the kind of lesson one should learn fairly quickly if you talk to experienced entrepreneurs. I was at a panel fairly recently where literally every single panel member (including a VC guy) mentioned you should never make the mistake of thinking that talks, no matter how advanced, with a VC mean a deal is forthcoming, and that you should always be continuing to look for other options until the pen hits the paper. You don't really need something like YC for that lesson; just talk to experienced entrepreneurs or other VCs (assuming you have some contacts with either camp).