[Upside Today] 17 rules for VC funding

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From: Linda (joelinda1@home.com)
Date: Thu May 25 2000 - 13:06:08 PDT

For those interested.... ;)


                    17 rules for VC funding
                    May 08, 2000

                    For those new entrepreneurs seeking advice on securing venture capital funds, here are 17 golden rules to
                    getting your company launched.

                      1.Sign up the best technology law firms as early as possible, ones that have been through the venture
                         capital process many times before.

                      2.The presentation of your business plan is the key to getting investors. Use props, demos, samples and

                      3.Contact VCs in waves. If you schedule one at a time, you'll have only one offer on the table at a time,
                         and it'll likely be a low one.

                      4.Give VCs your cell phone as your contact number, and keep it turned on.

                      5.Never mail a business plan to a VC unless requested to by one of the partners

                      6.The only thing you should send someone to whom you have not been properly introduced is an
                         executive summary describing your investment opportunity. A simple email is best.

                      7.Don't talk to any VC without a personal introduction from someone who knows the person. Without an
                         introduction you're wasting everyone's time.

                      8.If you don't have introductions, network with others until you find a contact with VC connections.

                      9.Never agree to meet with an associate at a venture capital firm. Associates have no power to make a
                         decision -- only the power to kill one.

                     10.When you meet with a VC, do not start -- under any circumstances -- unless all of those planning on
                         attending are in the room. If a partner asks you to start the meeting "before Sam gets here," or mentions
                         that "Bill will be late," either wait until all are present or reschedule the meeting. Your time is valuable,
                         and a flextime meeting is a guaranteed disaster.

                     11.Some of the best feedback you'll hear will come during your presentations to VCs. They'll have new
                         insights and observations. Listen carefully.

                     12.Agree on the next step of action by the end of the meeting. Don't leave with everything up in the air.

                     13.When a VC asks who else you are talking to, don't disclose the information. If they like the deal, they'll
                         likely bring in other VC firms they like working with.

                     14.When they ask what the valuation is, don't offer one. If you're high, they'll laugh -- and if you're low,
                         they'll run with it. Let them set your valuation.

                     15.When VCs call to tell you their decision and it's negative, accept it and learn as much as you can. Ask
                         the tough questions to learn why they turned you down.

                     16.An investment adviser who does not invest is an investment adviser you don't want.

                     17.Don't look to anyone to lead you. You've got to make it happen by being the driving force. If you're not
                         passionate, it's over: Get out.

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