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Three things you should never tell a VC when fundraising
- pg 17y agoThis is a bit extreme. You're going to have to tell them your cap table and how much money you have before you close a deal. So it can't be correct advice never to tell VCs that. The question is when.
- swombat 17y agoFred replied on Twitter: http://twitter.com/fdestin/status/6086581017 http://twitter.com/fdestin/status/6086581017 @swombat yes of course there is a time to disclose, that's implicit. information is valuable, use it wisely.
- fdestin 17y agoCatchy title, lazy title. Text conveys meaning more carefully: be very selective in your disclosures.
- jeremymcanally 17y agoMaybe I'm more upfront or something than most people, but tip #1 seems kind of dishonest. Why would you tell someone you're trying to build a trust relationship with that everything is just fine when it's really falling apart?
- richardburton 17y agoI was surprise to read that you shouldn't tell VCs about "Other investors you are talking to". Although I've never approached VCs, I can imagine that the quotation below is pretty close to reality: "(VCs are like high school girls: they're acutely aware of their position in the VC pecking order, and their interest in a company is a function of the interest other VCs show in it.)" http://www.paulgraham.com/startupfunding.html http://www.paulgraham.com/startupfunding.html If you let them know that lots of hot, cheerleader-VCs think you're kind of cute then that has got to help your chances of picking up.
- zaidf 17y agoIf you let them know that lots of hot, cheerleader-VCs think you're kind of cute Usually if that is the case, you shouldn't have to tell them. They'll know. That aside, I thought the article was aimed at the other 90% of startups that don't have VCs knocking their doors. In those situations, I think it helps to be careful about what information you give out.
- gstar 17y agoI have a feeling this is one of the key things that differ between greater Europe and Silicon Valley.
- zaidf 17y agoI think as the current cycle in Valley gets more competitive, you'll see fewer people being super open. Not just VCs but everyone, especially entrepreneurs.
- gstar 17y agoMost likely yes - I still think it would take a fairly sizeable contraction in openness in Silicon Valley to be as closed as Europe, though.