Charlie O'Donnell shares 10 myths of the VC world. I'm not a big fan of "list posts", but these seem different from the ones usually rehashed, so here goes:
- You need funding: most businesses don't.
- Only 22-year olds get funding: 22-year olds pitch more often, so they're over-represented, but anyone with the right business can raise money.
- VCs hold the power: while most VCs you pitch would like you to believe that, it's just not true. There's a lot more money than worthwhile investments.
- You get just one shot: many deals happen after the same VC has been pitched several times over a period (with progress being shown).
- Money will solve your problems: it accelerates things, it doesn't make them better.
- VCs are looking out for a reason to turn you down: they're looking out for the next big opportunity - they want to find reasons to say 'yes'.
- If only you could get 10 minutes on the phone they'd say yes: if you can't get a compelling message across in an email, your pitch still needs work.
- It's good to have too much money: overfunded companies are like the walking dead.
- You need a deck: you need to build a relationship. That can be done without a deck. (see this article though)
- VCs will be really hands-on at helping build your company: most won't.
More detail and meat on Charlie's site.
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