A startup founder after getting some cold knocks from VCs was found whining in a community blog (excerpts) –
“We have a reasonably sound product [some xyz.com] in place, which has already happy faced beta-customers.
And this is what we hear from VCs;-
1. 60% we don’t invest in this area. (hmm, but your website covers all googlable computer science area)
2. 10% we don’t understand your product/market. May not be able to help ( Perfectly OK )
3. 10% You don’t have a proven team ([Joe partner] has 15 patents, and i have never lost – be it AOE/interview or JEE [entrance exams]. But yes we are first timers)
4. 10% Why don’t you sell over web. (Dude, its an enterprise problem. Customer need to be told how more than what
5. 10% – These are the good ones. And i have my hopes alive.
This is also a reason why there is a mushroom growth of “VC consultants”. Infact, when i asked one VC consultant, if he trusts the product. He simply said, he would have to, and VCs also need not fully understand it.”
In his reply to another comment, he also confessed that his startup might choke if not resuscitated soon because they are fast running out of money. [I have edited some smileys out from the excerpts more for the reason that it would’ve made him look like an orifice than for its inapt placement]
I found it a bit curious though not funny. If only 10% [of the VCs] are the good ones, 90% are useless according to him (including no.2 whom he okayed !). Is it because they didn’t find his venture investment grade? This I chose to blog because it is symptomatic of the startup community in India. If somebody disapproves of their idea, they are dumb, stupid or just short of evil. Not that something is even mildly wrong with the idea or its plan of execution (if existed !).
I felt like asking, if you are so sure of the product and your team’s ability to execute it, why don’t you pal, just go ahead and ask your parents to mortgage their family assets to invest in?
Smart founders go extraordinary lengths to prove the marketability of the product thro early sales that leaves some money in the bank – the rest just discourse or wallow – even as they shamelessly peg a valuation of $10 M pre-money ! Ask them how they arrived at it, because they thought so – is their straight faced reply even without as much as a shrug. Fuckin’ cool !
Consultants, they are a breed of course, a smart one at that. Mckinsey, Accenture, EDS, IBM all of them belong to this breed. Others like Infosys, Wipro, TCS all are taking seriously to consulting. Wherever there’s a disconnect between the`needy’ and the `willing’, consultants thrive. If there’s none, their creativity will yield one. No point in carping over their `mushrooming’. Love’em, hate’em they’ll be around, prospering by the day. You just can’t stop them. Yours truly is a card carrying member of that club, making a pretty good living off it and startup founders love me for what I deliver.
At least they don’t beg for VC money to survive, do they ? Never. Too smart for that.