Posted by The Founding Member on 2007-07-10
Another set of big milestones was hit today, breaking 1,900 reviews and 1,400 Members. Now is a good time to reflect on the growth. "Johnny 57" and "fundedagain" recently discussed a series of positive reviews appearing to be "shills," referencing the fact that VC's are asking entrepreneurs to rate them on TheFunded.com, which, in the opinion of Johnny 57 "is a form of steering." A few facts should be noted. First, back-to-back groups of reviews on one fund are a common phenomenon, as reviewed funds get promotion on the homepage, which, in turn, leads to more reviews. Second, every Member is carefully screened to be a credible entrepreneur. Third, TheFunded.com checks to ensure that incoming groups of reviews are indeed written by separate Members.
The main problem with the reviews in question is usefulness of the review content. Calling someone "great" does not help your fellow entrepreneur get a term sheet and close a financing. So, we have responded by providing new guidance for the Public and Private reviews, currently seen by Members when posting.
Public Commentary: Use the Public section for insightful general analysis of the pro's and con's of the fund from your direct experience. Example: "The have a solid background in healthcare, but the closing process is long and drawn out. Overall, they are worth pitching to see if they engage."
Private Commentary: Use the Private section to explain your relationship with the fund in any detail that you are comfortable with, to provide specific advice on dealing with the fund in the pitching process, and to highlight any issues of partner competency or terms that are relevant to closing a financing from your experience. Example: "I pitched the fund, got terms, but turned them down for another offer. Show up to meetings early with all the data on hand, as this matters to them. Make sure to identify your lead partner in the first face-to-face meeting. John Doe is the deal guy. Jane Doe is late, so beware."PRIVATE: Members Only (422 Characters)