Brad Feld had a great post today of an email he received:
Yet, as I set out to raise money …I’ve noticed, or maybe more accurately, I’ve become aware of the ether that is between a venture investor and entrepreneur. In the ether, all things that can make or break a deal exist: idea, market risk, technical risk, team competence, economy, deal flow, competition, VC mood that day, entrepreneur pitch that day, first impression, gut feel, blog post for or against the idea read that morning, breakfast/no-breakfast, bias for or against, smarts or not-so-smarts of the VC and entrepreneur.
In my pitch experience, VCs I have been convinced hated me and my company after my pitch have invested. VCs I am sure as shit loved me and my company after my pitch blew me off. I have also been right that VCs I thought hated me and my company told me they in fact did; and, those who loved me and my company did in fact invest. It’s been a crap shoot at best.
Assuming there is something of merit in the idea, market, team and company, somewhere in the ether is a term sheet and a kick to the curb. Coalescing just the right combination of elements in the ether at the right time has proven to be more art than science. Anti-portfolios highlight how successful companies didn’t get it coalesced with one investor but did with another.
If I get it right and a financing comes together for my new company, I hope to have learned something that tips the scales of randomness in the scrum.
And I provided this comment:
That’s a great email. Thanks for sharing.
I am an experienced entrepreneur in the middle of the scrum myself (in fact I’m in discussions with Ryan & Seth at your firm, among others). The truth of start-up life is that it is a constant battle, there are ecstatic highs and vicious lows. I like VCs who don’t try to smooth it all over, but recognize the reality of that battle. In particular, I love the creed of Quest VP ; it recognizes that so much of the determinant of success is the entrepreneur’s fortitude in the battle.
As an entrepreneur, you have to embrace the battle and love it. It’s the only way to live. It’s great to hear about it from another entrepreneur’s prespective. To whomever it is: good luck!!!
The Quest principles:
We believe a successful startup must excel in these six points and more:
- Surrounds itself with the best and the brightest of ambitious, dedicated and passionate people; the best give the expertise and experience needed, the brightest will always find innovative solutions and the ambition & passion will give the courage required to pick yourself up when you fail.
- Understands that it will, baring incredible luck, likely fail catastrophically at some point and is always planning for this.
- Has the patience, courage, conviction, and irrational faith to persevere even when there are better alternatives in the market and when the going gets tough.
- Recognizes a significant and genuine market pain. Provides a cost-effective and adoptable solution to an undiscovered need or problem that exists and is better than any present, emerging or conceivable alternatives.
- Knows how to successfully market and monetize their solution. Validates their market pain and monetization plan by lining up potential customers for their solution early on.
- Executes, executes, and executes. Makes sure to do the right things and to do things right. Thomas Edison is known to have said “Genius is 1% inspiration and 99% perspiration.” He is also known to have said “There is no substitute for hard work.”
