Comments on: The Other Reasons To Raise Money From VCs http://www.centernetworks.com/raise-money-venture-capital Web 2 and Social Media News and Reviews Sat, 21 Nov 2009 01:50:56 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Ben Yoskovitz http://www.centernetworks.com/raise-money-venture-capital/comment-page-#comment-20240 Ben Yoskovitz Wed, 30 Nov -0001 00:00:00 +0000 #comment-20240 I would agree with Jeff's assessment that pitching VCs can be valuable for a number of reasons. It's the same argument I would make for getting on stage at a venture event and pitching or launching your startup at a sizable event -- it's not likely that you'll walk away with a term sheet or cash, but the practice of getting on stage in front of hundreds of people is valuable. Of course if you can never raise capital, the other benefits won't necessarily make up for that fact, but they're definitely benefits you can gain from going through the exercise. I would also argue that first-timers who haven't tried raising money before or pitching VCs should go to local events and practice - I've been to numerous DemoCamps and similar events where you can pitch in front of a relatively friendly audience and get practice + constructive advice. I would agree with Jeff’s assessment that pitching VCs can be valuable for a number of reasons. It’s the same argument I would make for getting on stage at a venture event and pitching or launching your startup at a sizable event — it’s not likely that you’ll walk away with a term sheet or cash, but the practice of getting on stage in front of hundreds of people is valuable.

Of course if you can never raise capital, the other benefits won’t necessarily make up for that fact, but they’re definitely benefits you can gain from going through the exercise.

I would also argue that first-timers who haven’t tried raising money before or pitching VCs should go to local events and practice – I’ve been to numerous DemoCamps and similar events where you can pitch in front of a relatively friendly audience and get practice + constructive advice.

]]> By: T. Rheingold http://www.centernetworks.com/raise-money-venture-capital/comment-page-#comment-20330 T. Rheingold Wed, 30 Nov -0001 00:00:00 +0000 #comment-20330 I like all these ideas and immediately think VC visits should be part of every entreprenuers start, even if you have no interest in doing a VC round. (Though you might want to change the post title as none require taking VC money, just meeting with VCs.) When my company Dogster was doing an Angel round, it was very hip for VCs to feign interest in doing small rounds with lighter terms. In the end none of them were actually ready for the small round (as their models just don't support it) but I couldn't say no and pitched to quite a few VCs. We got a ton of great feedback, expansion ideas, connections. Many went on to become regular contacts, or even trusted confidants. It's not a waste of time for VC either as they are getting insights into what's unique about your business. The one caution I'd offer is to not assuming your 4 year plan will come true simply because you've done your pitch 20 times and could do the preso in your sleep. Just because they don't say they don't agree with your numbers, doesn't mean they'll tell you. And just because you've memorized numbers in a spread sheet doesn't mean it's any more likely that will happen. The only way you can trust your numbers is by proving them yourself. I like all these ideas and immediately think VC visits should be part of every entreprenuers start, even if you have no interest in doing a VC round. (Though you might want to change the post title as none require taking VC money, just meeting with VCs.)

When my company Dogster was doing an Angel round, it was very hip for VCs to feign interest in doing small rounds with lighter terms. In the end none of them were actually ready for the small round (as their models just don’t support it) but I couldn’t say no and pitched to quite a few VCs. We got a ton of great feedback, expansion ideas, connections. Many went on to become regular contacts, or even trusted confidants. It’s not a waste of time for VC either as they are getting insights into what’s unique about your business.

The one caution I’d offer is to not assuming your 4 year plan will come true simply because you’ve done your pitch 20 times and could do the preso in your sleep. Just because they don’t say they don’t agree with your numbers, doesn’t mean they’ll tell you. And just because you’ve memorized numbers in a spread sheet doesn’t mean it’s any more likely that will happen. The only way you can trust your numbers is by proving them yourself.

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