DISQUS

Jon · 2 years ago

Tim, thanks for the article. It comes at a great timing for us.

Chris Schultz · 2 years ago

Hi Tim -

This is a fantastic personal insight into the challenges and emotions involved in raising funding. Thanks for sharing it.

Chris

Ramon · 2 years ago

I think the best tip is: "Pick your targets carefully from among those with an expressed affinity for your sector – they’ll be the ones with a tendency towards the aspirational."

That has really turned into results with not only investors but products, etc.

Jay Parkhill · 2 years ago

I'll add to what Ramon said- another key is to start building the investor-community relationships long before you start trying to raise money.

Find out who invests in your sector and get on their radar so that when you ask for cash they already know who you are.

Easier said than done, of course, but if a VC investment is like a marriage, you need to start the courtship long before you're standing at the altar.

Don Jones - VentureDeal · 2 years ago

Venture capital firms and people are a never-ending fascination. Tim's take is good input on the human side of the business.

mathew johnson · 2 years ago

Mentioning investors "bending their investment criteria" is a good point - all startup investments are quite different, and my personal feeling is that you are in trouble already if "investment criteria" come up.

http://blist.com/blog/

embed · 2 years ago

Its always great to see an entrepreneur speaking from the heart. Thanks. My own experiences have been very similar.

Anthony Kuhn · 2 years ago

Tim:

Always good to have a real world peek at what really works, and what doesn't. From your piece, I would guess that it's all about who you know, and not what you know, that counts, as is often the case in life. I also think that your road to success illustrates the role "art" has in making it, as science doesn't always take into account what makes a venture click. Your story is just the type of thing I look for when researching stories for my target audience. I cross-posted on your piece, along with some comments, at http://blog.innovators-network.org The Innovators Network is a non-profit dedicated to bringing technology to startups, small businesses, non-profits, venture capitalists and intellectual property experts. Please visit us and help grown our community!

Best wishes for continued success,

Anthony Kuhn
Innovators Network

David Aslin · 2 years ago

Tim, a very perceptive and insightful article on that subtle emotional shift that every investor goes through as they move from 'this looks interesting' to 'this one I have to do'. I think of it as 'right brain' or 'emotional diligence' versus 'left brain' or 'analytical diligence'. As ever, it's the soft skills of getting the investor to invest emotionally in your deal that are least understood and most often missed. As I've learned as both a VC and an entrepreneur, you have to pass the logical, analytical gate at some level, but only getting the investor emotionally involved will get you the $$$. And as a VC I learned to listen carefully to what my gut/emotions were telling me, since deal decisions, as you eloquently point out, involve bending the espoused criteria a little, or a lot.

Tim Westergren · 2 years ago

David, I am indeed a believer in the 'emotion' theory of investment. I now hear many new business ideas, and find that I have visceral reactions to ideas. These reactions are decidedly personal - and reflect my own biases/background. For most of these ideas I can't imagine having enough time to get smart enough to make the call purely on the financial merits - it's very instinctive. Next to instinct, i'd probably say that an endorsement from someone I really trust in the space would be the next most powerful driver.

I'd also add that my experience has taught me just how important the personal chemistry is with the investors. I'll bet a majority of small companies fail because of interpersonal issues. So it's perfectly valid to treat that part of your diligence as a material criteria.

Tim Westergren · 2 years ago

mathew - I chuckled when I read your comment. I completely agree - if someone starts talking about their 'guidelines', pack your bags. Any rule can be broken with the right deal. It's just a gentle way of saying now. Speaking of, one advice to VCs, be gentle. No reason to be short/rude. Remember how hard it is to be an entrepreneur.

Of all the VCs I pitched to, the ones I thought were the most insightful, and that impressed me the most (virtually all of whom said 'no'), were those who had been entrepreneurs. And to a person, they were also the most respectful. Even if they thought your idea was ridiculous, they treated you well. That really means a lot.

Mike · 2 years ago

Hey Tim,

Thanks a lot for the insight. Just wanted to say how much I am using Pandora currently. I just rediscovered it a week ago and I'm so impressed with the music that it plays/suggests.

Manish · 2 years ago

Excellent article Tim! It obviously helps if the partner that's been convinced by the entrepreneur has enough clout in the firm since majority of VC firms operate on a consensus basis.

Noah · 2 years ago

Thanks for the article, Tim. I use Pandora every day. Just a quick question -- is 348 a literal number, or an exaggeration?

Tim Westergren · 2 years ago

hi Noah - I'm afraid it was literal.

T.

Noah · 2 years ago

That's some perseverance. How many months did it take?

Tim Westergren · 2 years ago

Took about 2 years.... Felt like dog years...

Kenneth Wesley Roberts · 3 months ago

Thanks so much I am leaning on starting a preformance company in 2010 in Augusta, GA; 2 hours form atlanta; 45 min. from Columbia, S.C,. as well as 2.5 hours from Savannah,GA. We will basically do turbo kits, nitrous kits, superchargers, body kits, preformance exaust, as well as competition sound systems. I have a meeting with a Big Investor next month over a mid afternoon lunch and I want to have everything together so any more tips would really help. Just shoot them to my email. "Wes@deathbyshovel.com"

Thanks again,
Kenneth Wesley Roberts
Deranged Customs LLC.