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Here is a surefire bet: Gather together a bunch of entrepreneurs to talk about venture capitalists, and before long the conversation will turn to the issue of control. Here's the common refrain: "If we take VC money, the next thing you know, they'll be in control, and we'll be out on our ear."
Now, try the reverse. Gather a bunch of VCs, and before long you'll hear something like this: "If we invest in them and we don't have the ability to take control, these young hotshots may run right over the edge of the cliff and take all our money with them."
The problem, of course, stems from the following: Entrepreneurs often have mixed goals in starting a business. They want to deliver on a product vision, want to grow a major enterprise and make money, and also want to be the boss. Venture capitalists have only one goal: To make money for their investors and themselves. Sometimes, if the company gets off track and management doesn't seem able to fix it quickly, VCs want to bring in people who they believe can.
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Posted by Gerry Langeler
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We've seen all sorts of presentations from startups over the years. But
none as succinct, yet as effective as one we saw a few days ago.
The Seattle company in question is one that pitched us a few years ago. At
the time, we loved the team, but thought they seemed to be remarkably
unfocused. So, rather than have our money burned in a "bumping into trees"
exercise, we passed. Now they were back - with laser focus - and it
showed.
Before the presentation started, the CEO told us he only brought seven
slides. And oh, by the way, they were all in 30 point type! My immediate
reaction was, "This guy must have his stuff together!" Rather than death by
PowerPoint, he was planning to subject us to a real discussion, where the
knowledge of the management team was the foundation, not the slides. And the
goal was interaction with potential investors, not to baffle us with BS.
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Posted by Gerry Langeler
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