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A VC Guide For Realistic Entrepreneurs
By Rob | March 20, 2007
Seth Godin posts about the things you should consider when looking for VC money. A few items from the list…
1. Investors like to invest in categories they’ve already invested in. If your business is so new that it’s never been tested before, or is in a category VCs hate, think twice.2. Investors want you to sell out. As soon as possible. For as much as possible. They have no desire to own part of your company forever.
3. Investors want to invest in a project that’s tested. If you can’t make it work in the ’small’, why do you think it’ll work when it’s big?
4. Being a little better than the market leader is worthless.
Venture capital isn’t for everyone. One advantage to being outside the valley is that it’s harder to get, which could help you to keep costs low and build from your cash flow because bootstrapping is your only option.
Topics: VC |
