daily articles for founders

Running a startup in the UK (or with a UK subsidiary)? Get in touch with my company, GrantTree. We help with government funding.
Misperceptions about VCs  

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:

  1. You need funding: most businesses don't.
  2. 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.
  3. 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.
  4. You get just one shot: many deals happen after the same VC has been pitched several times over a period (with progress being shown).
  5. Money will solve your problems: it accelerates things, it doesn't make them better.
  6. 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'.
  7. 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.
  8. It's good to have too much money: overfunded companies are like the walking dead.
  9. You need a deck: you need to build a relationship. That can be done without a deck. (see this article though)
  10. VCs will be really hands-on at helping build your company: most won't.

More detail and meat on Charlie's site.

More from the library:
Doing more by doing less
The terrible costs of patents
Joel Spolsky's method for splitting shares in a startup