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You answered your own concern here. >> based on liking the team We all know that the idea without an execution is not worth much. It's easier to halt everyth
by gedrap 13y ago
You answered your own concern here.
>> based on liking the team
We all know that the idea without an execution is not worth much. It's easier to halt everything by saying the idea sucks rather than saying that he doesn't believe in the founder.
>>seeing who else is investing
Social proof is a huge factor and touches many aspects of every day life. And at the end of the day, investors are humans.
- EGreg 13y agoYes, in my experience, leveraging existing relationships and capturing the investor's imagination are much more widely successful strategies for raising a round than actually having a product or revenue. At the end of the day, a lot of this has to do more with social dynamics than fundamentals of the business strategy. That can explain how companies like Color can raise huge seed rounds on unproven ideas and then fail quickly.
- 6cxs2hd6 13y agoIt's wiser to adopt the view that it's not really about "entrepreneurs", "business models", and "venture capitalists". If it ever were that, it sure ain't anymore. Instead the dynamic is closer to student-apprentice applicants and admission committees.[1] [1]: "Entrepreneurs Are The New Labor" by Venkatesh Rao: http://www.forbes.com/sites/venkateshrao/2012/09/03/entrepreneurs-are-the-new-labor-part-i/ http://www.forbes.com/sites/venkateshrao/2012/09/03/entrepre...
- ryguytilidie 13y agoEvery single startup I've worked for, the founders admitted that there wasn't a ton of interest until one of the big ones was interested and then EVERYONE was. While its fine to just point to this as an example of social proof, you have to wonder how good these guys are at their jobs if they get much less information from their time with you than they do in finding out if someone else invested in you...