Reminding the DO’s and DON’TS in Venture Capital - PART 1
There are many tips out there on the best practices in Venture Capital and the available resources are infinite.
The idea here is not to shed light on bad habits that have never been addressed so far.
Rather to stress again the importance to abide by commonly accepted rules and attitudes to adopt in particular social transactions: for example sending a pitchdeck to VCs, asking for an intro etc.
It is a matter of education. Educating people is a loop. Again and again. And again.
The more the Baker kneads his dough, the tastier, the less flawed the bread and the more customers will be returning.
By the way, one objective here is to publish some of your experience of displaced, unwarranted or uncalled-for behaviors, either from VCs or from Entrepreneurs.
Send us an email to hello at upcoming dot vc to share some crispy cases and crunchy episodes you've been into and once a month we will publish them here.
Before we start compiling your own stories, let's kick-off with these recommendations, Although we all know about'em, don't forget the Baker's axiom....
1) An NDA thou shalt not ask VCs to sign
You have that sublime product that almost brought you to a burnout because of no-sleep.
You've spent your last 18 months stroking your keyboard and not your partner-in-life (edit: you may not have one anymore..).
You're almost broke. You're eating softened tacos - those you've forgotten in your cupboard 3 years ago. But it doesn't matter because you have no time to run errands.
Legitimally you do not want that big company, easily running a 2w agile sprint coding session, to "copy" you after an alleged leakage of your tech. You think the NDA will protect you.
VCs are literally dying under piles of decks. They have no time for NDAs. Their objectives is to invest in promising entrepreneurs, solid tech, growing TAM, market leaders, fast-learning team. Although you all heard about potentially conflicting interest they may have with potential competitors, they have no time to devise "copycat schemes". Not to say that's not their job.
Unless you have a patent pending for a disruptive oncology drug (I am on purpose exaggerating), THAT is a major DON'TS.
2) Double opt-in intros thou shalt at any time respect
Inbox zero, swipe left and right, smart folders, keywords identification and own email management methodology STILL allow for discovery. People, Products, you name it.
What we mean here is that we appreciate meeting new people and detect new tech. We actually live for it. That is bottomline called "dealflow". Investment opportunity. 3X 5X 10X return objective.
But although we have to some degree developed assertiveness (we've learned to boldly say no or yes), we do not like to be corned.
That is a feeling we have when our friend/acquaintance John drops us that email with Mike (who the heck is Mike) in CC.
"Hi mate,
You should meet Mike (here CC), this guy is fantastic and his product XYZ is awesome.
Guys, up to you!
Cheers, John"
But whatever the reason (not your investment thesis, conflicting portfolio companies, team...) you may want to pass, upfront. No call, no meeting.
But John, your friend (a bit less now after this email...), is on a fiduciary mission relative to Mike.
When trying to connect to people, first discuss the matter on each individual side, separately. Ask side 1, looking to be intro’ed, to send you a short summary (one liner, max two ideas) that YOU, in the first place, will send to side 2. Ask if side 2 is interested. If yes, do that email above. Simple as that. Manage expectations. Manage people’s time. Manage your network.
3) Feedback thou shalt give
Magnificent. The intro was made, you've called/met that VC (or anyone else - the point is valid for any type of intro/sector/objective).
Whatever the outcome of that initial contact (planned follow-up, in-person meeting, or deadend), GIVE FEEDBACK to that person who made the intro. Don’t wait for her to ask how it went (by the way, she may never ask because she’s more polite than you are, but she may punitively rule out any other intro you’d ask).
Beyond empathy, manage your network.
Send us an email to hello at upcoming dot vc to share some crispy cases and crunchy episodes you've been into and once a month we will publish them here.
