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that's a good read. he doesn't get into it too much, but the danger in declaring fund-raising season and going for broke is that if you blow your wad on the 6
by rwebb 19y ago
that's a good read. he doesn't get into it too much, but the danger in declaring fund-raising season and going for broke is that if you blow your wad on the 6 VCs you know in 3 weeks and none of them bite, you just cashed in all your connections. of course you should continue the dialog with them and ask what you they would like to see over the next period for them to be interested...but then you have a wish list from 6 vcs who might not know what's best for your business.
the ultimate marketing making move i have heard of is this:
1. give 3 firms your materials, including the amount of money you want to raise and the valuation you want to raise it at;
2. tell each fund that you have given the same materials to 2 other funds and that you are going to only take on the 2 funds that respond first.
this can work very well. the upside is that you create leverage and massively cut down on negotiations if it works. downside is that it can blow up in your face. if your company isn't as great as you think it is, VCs could get pissed and tell you to screw, putting you back at square 1 with some potentially burned connections.