I didn't think I would see "honest" and "venture capitalist" in the same sentence. Not only are VCs extraordinarily wealthy, but they are also masters at avoiding confrontation, like they don't ever want to be quoted as saying they didn't like a particular project. With all the power they've got, that has always puzzled me.
Seems there is at least one exception to this stereotype: Vinod Khosla, the immensely successful VC who really takes the time to give an honest response. See the story in this interview.
For decades we have told entrepreneurs that NO is NO, no matter how it is phrased. "We are focusing on other areas right now" may be a bunch of baloney, but it is still NO. That Mr. Khosla actually takes the time to say, "This is what is really wrong" may bruise your ego, but it will likely ensure that you won't keep making the same mistake over and over. He has gained our undying respect.
Venture capital business plans and presentations demand a whole lot more than other types of business plans. Logical, since they are asking for a whole lot more. Thousands of entrepreneurs waste slews of time pursuing venture capital, when they really don't qualify for it at all. So we have another piece of advice too: If your business plan has been refused several times, especially from VCs who should be interested, pull it back in and find out what the problem is. Don't ever assume that VCs don't have the money -- they do. If there is a problem, it is with your business or your presentation, not theirs.
0 comments:
Post a Comment