VentureBeat - Latest Comments in Double down? Spin in? New questions for a new economy

Re: Double down? Spin in? New questions for a new economy

Ike — Tue, 18 Nov 2008 02:46:28 -0000

Correction: thanks 'Anonymous' (thanks Bruce too, but not for the ycombinator comment).

Re: Double down? Spin in? New questions for a new economy

Ike — Tue, 18 Nov 2008 02:43:40 -0000

Thanks Bruce for putting words to what I feel about ycombinator. Maybe not the last sentence, but surely 'hefty' is true - for a value created by the startups themselves. About VCs did you read the

http://www.slideshare.net/g...

Re: Double down? Spin in? New questions for a new economy

Anonymous — Mon, 17 Nov 2008 16:36:36 -0000

Bruce:

I work for a small startup with revenues around $1 million. We lost count of the number of VCs calling us, asking for a meeting, and telling us to contact them once we get to $5 million per year in revenues.

The only exception I know to this rule is Ycominator: which essentially provides beer and pizza money ($15,000) to kids in exchange of hefty ownership. The mob would be proud.

Do you guys realize most startups have no need for VC infusion once they get to that level? Not all, but most.

Also: what about the concern of investing money in technology created by kids. Very bright kids, obviously, but kids nonetheless.

Seems like a formula destined for long-term failure.

Thanks.