3.7
4.0 
4.7 
4.3 
4.0 Turning The Tables
TheFunded.com Open Letter
Posted by raul on 2008-03-27
So, for a moment, lets try turning the tables.
Lets say that I decided to start a fund, get a good-looking and practical website, put some good background of myself and a few other partners and start talking to entrepreneurs about their ideas.
Since everybody has a limited amount of time during the day to talk to people, do research, and read proposals, would we get grilled for being unresponsive if we only reply to the opportunities that we are interested in? Think about it, without being a VC, I get at least 100 e-mails per day, if I get 1,000 e-mails per day, would I be considered inpolite and unresponsive if I don't reply to all of them?
I would, of course, only schedule meetings that I believe that I can keep and, unfortunately, more pressing matters would come up that I would try to explain and hopefully you will not mark as a "lame excuse".
After the meetings, once the entrepreneurs are gone and my team and I have time to read and discuss the materials, I would make an effort to give a clear "Yes", "No" or "Maybe later". I would try to avoid a "soft yes" or a "soft no".
After a "Yes", I would make sure that the term sheet is "fair" (whatever that happens to be but clearly leaving a good value in common stock) and that the money gets in the bank as soon as possible.
After a "Maybe later", I would try to set a schedule for follow up.
After a "No", I would give honest feedback and perhaps a recommendation to see somebody else that could be interested.
So, doesn't it sound like a good VC?
Would my firm still be grilled for trying to do the best job possible?
So far, from what I have read in The Funded, very few if any VCs are good VCs...
Thanks for reading.
