Comments on: Fear, Competition, and Greed: A Checklist for Making Your Deal Hot to VCs http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/ Business + Technology in the Exponential Economy Sat, 11 Feb 2012 03:54:18 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Pete Leather http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/comment-page-1/#comment-32289 Pete Leather Thu, 16 Oct 2008 10:35:38 +0000 http://www.xconomy.com/?p=3050#comment-32289 Superb post. One question. You keep referring to the applicant as the entrepreneur. In my experience, this is now a title that is given to anybody who starts a business when in the majority of cases; I would refer to them as being enterprising as apposed to an entrepreneur. In your experience what separates an enterprising individual from a true entrepreneur, if anything. Superb post.

One question. You keep referring to the applicant as the entrepreneur. In my experience, this is now a title that is given to anybody who starts a business when in the majority of cases; I would refer to them as being enterprising as apposed to an entrepreneur. In your experience what separates an enterprising individual from a true entrepreneur, if anything.

]]> By: Great post on getting venture funding » Startable http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/comment-page-1/#comment-24872 Great post on getting venture funding » Startable Thu, 31 Jul 2008 20:01:11 +0000 http://www.xconomy.com/?p=3050#comment-24872 [...] Here is the link to Eric’s post on fear, greed and venture funding. [...] [...] Here is the link to Eric’s post on fear, greed and venture funding. [...]

]]> By: James Geshwiler http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/comment-page-1/#comment-21939 James Geshwiler Fri, 27 Jun 2008 14:03:32 +0000 http://www.xconomy.com/?p=3050#comment-21939 Excellent post; Eric has been a front-line enterprise software salesman, so he knows how to get big deals done. An entrepreneur also should consider the influence of other stakeholders and opinion leaders in the community. Eric's article presumes you already have a general partner at a VC firm's attention. That's not always easily done, even if you are (and sometimes especially if) you're an experienced entrepreneur...they figure they know you so they have time to watch the deal evolve. Getting other successful entrepreneurs/angel investors to put their money (but more importantly, credibility and reputation) in the deal and hence signal that it's now starting to be "in play" b/c they will also be helping raise money can really catalyze the process. Key, deal-making academics (hello, Bob Langer, George Whitesides and their kin) and big customers who will help you find "strategic partners" also can kick start the deal. Excellent post; Eric has been a front-line enterprise software salesman, so he knows how to get big deals done. An entrepreneur also should consider the influence of other stakeholders and opinion leaders in the community. Eric’s article presumes you already have a general partner at a VC firm’s attention. That’s not always easily done, even if you are (and sometimes especially if) you’re an experienced entrepreneur…they figure they know you so they have time to watch the deal evolve.

Getting other successful entrepreneurs/angel investors to put their money (but more importantly, credibility and reputation) in the deal and hence signal that it’s now starting to be “in play” b/c they will also be helping raise money can really catalyze the process. Key, deal-making academics (hello, Bob Langer, George Whitesides and their kin) and big customers who will help you find “strategic partners” also can kick start the deal.

]]> By: Eric http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/comment-page-1/#comment-21933 Eric Fri, 27 Jun 2008 13:16:44 +0000 http://www.xconomy.com/?p=3050#comment-21933 Doug, Good question. Many firms like to syndicate A round investments, and therefore need to find like-minded investors. An interested investor will try to find out who else is looking at the opportunity (therefore not creating incremental competition) but may also introduce one or two new investors that could make up a syndicate. This creates the positive buzz and momentum... Eric Doug,

Good question. Many firms like to syndicate A round investments, and therefore need to find like-minded investors. An interested investor will try to find out who else is looking at the opportunity (therefore not creating incremental competition) but may also introduce one or two new investors that could make up a syndicate. This creates the positive buzz and momentum…

Eric

]]> By: Doug http://www.xconomy.com/boston/2008/06/26/fear-competition-and-greed-a-checklist-for-making-your-deal-hot-to-vcs/comment-page-1/#comment-21832 Doug Thu, 26 Jun 2008 15:21:14 +0000 http://www.xconomy.com/?p=3050#comment-21832 This is one of the best posts I have ever read on the mindset of a venture investors. One question. You write, "If an entrepreneur pitches a great idea to a relevant VC, the likely outcome will be positive buzz and promotion within the VC community." Why would the relevent VC want to mention the deal to colleagues at other firms, thereby inviting more competition into the deal? Wouldn't a better startegy be to keep it quiet and try to get a term sheet nailed down quickly? This is one of the best posts I have ever read on the mindset of a venture investors.

One question. You write, “If an entrepreneur pitches a great idea to a relevant VC, the likely outcome will be positive buzz and promotion within the VC community.” Why would the relevent VC want to mention the deal to colleagues at other firms, thereby inviting more competition into the deal? Wouldn’t a better startegy be to keep it quiet and try to get a term sheet nailed down quickly?

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