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"Charging un-funded startups to attend a conference to matchmake them with VC's is unproductive and unethical." 100% don't agree. [1] Unproductive for the sta

by larrys 13y ago

"Charging un-funded startups to attend a conference to matchmake them with VC's is unproductive and unethical." 100% don't agree. [1] Unproductive for the startup? Making contacts and getting some exposure and having discussions (and most importantly making mistakes) is unproductive? How so? Charging? As the retort from the principal of the firm said what are they supposed to do do this for free? And exactly what is unethical? Taking advantage of young people who don't know the difference between what you (or others here) might consider a "legit" opportunity (hey like spending half their life trying to get into the YC or VC lottery to begin with) and this? [1] When I graduated from college on my own dime I paid money to fly to (get this) a "word processing conference" in order to make contacts and establish myself in what (I thought) would be the new business I was starting (computer supplies). Later when starting other businesses I flew to other places to go to expos, shows, whatever I needed to do. I used my own money to do that (that I had earned).

tptacek 13y ago
What's a well-known startup that was funded as a result of having paid to meet investors? If you can't name one, the unproductiveness argument is straightforward, and the ethical argument follows from it. The reality is that this simply isn't how venture funding works. Founders don't pay to meet investors; they exercise their own networks to get intros. Paying to expand your network in some obvious was is unhelpful; all it does is send a signal that you don't have a real network.
- larrys 13y ago
  "What's a well-known startup that was funded as a result of having paid to meet investors?" The answer to that question isn't known to me. Of course if I was the one that was producing the event, and someone asked that question, it would be valid. [1] That is if we could get beyond a definition and why it matters if the startup was "well known". "The reality is that this simply isn't how venture funding works." Half of what people are doing today (1/2 is arbitrary to make a point) are things that go against "how" something currently works. "all it does is send a signal that you don't have a real network." But who does it send a signal to? You mean it paints you with a big fat "I'm a newbie and I don't know how things work label?". To be clear I haven't analyzed the value provided by paying this company money and can't say that I would recommend it (or not). But I don't think it's clear that there isn't any value and I am fairly certain that it isn't a scam either [2] that there could be people getting value from it. [1] That said there are many situations in business where the effort and/or money paid doesn't result in a direct benefit like funding or something (and this is important) that is easily measured. [2] Like those real estate seminars which I would say are a scam but I think they have entertainment value for some people. And maybe after you attend one you learn a valuable life lesson for the money spent.
  - tptacek 13y ago
    It's not "known" to me, but I would be willing to bet significantly on the answer. There are things that people don't do because nobody's thought to do it, or because nobody's been willing to accept the risk. But there are also things nobody does because they self-evidently won't work, and paying for introductions to VCs is probably one of those things. The signals it sends is worse than "I'm new"; it's "I was unable to generate interest from investors on my own".
Zigurd 13y ago
No first tier investors show up at events where entrepreneurs pay to pitch. It is only slightly less evil than placement firms that charge a fee to applicants.

by larrys 13y ago

tptacek 13y ago

What's a well-known startup that was funded as a result of having paid to meet investors? If you can't name one, the unproductiveness argument is straightforward, and the ethical argument follows from it. The reality is that this simply isn't how venture funding works. Founders don't pay to meet investors; they exercise their own networks to get intros. Paying to expand your network in some obvious was is unhelpful; all it does is send a signal that you don't have a real network.

larrys 13y ago
"What's a well-known startup that was funded as a result of having paid to meet investors?" The answer to that question isn't known to me. Of course if I was the one that was producing the event, and someone asked that question, it would be valid. [1] That is if we could get beyond a definition and why it matters if the startup was "well known". "The reality is that this simply isn't how venture funding works." Half of what people are doing today (1/2 is arbitrary to make a point) are things that go against "how" something currently works. "all it does is send a signal that you don't have a real network." But who does it send a signal to? You mean it paints you with a big fat "I'm a newbie and I don't know how things work label?". To be clear I haven't analyzed the value provided by paying this company money and can't say that I would recommend it (or not). But I don't think it's clear that there isn't any value and I am fairly certain that it isn't a scam either [2] that there could be people getting value from it. [1] That said there are many situations in business where the effort and/or money paid doesn't result in a direct benefit like funding or something (and this is important) that is easily measured. [2] Like those real estate seminars which I would say are a scam but I think they have entertainment value for some people. And maybe after you attend one you learn a valuable life lesson for the money spent.
- tptacek 13y ago
  It's not "known" to me, but I would be willing to bet significantly on the answer. There are things that people don't do because nobody's thought to do it, or because nobody's been willing to accept the risk. But there are also things nobody does because they self-evidently won't work, and paying for introductions to VCs is probably one of those things. The signals it sends is worse than "I'm new"; it's "I was unable to generate interest from investors on my own".

Zigurd 13y ago

No first tier investors show up at events where entrepreneurs pay to pitch. It is only slightly less evil than placement firms that charge a fee to applicants.