The Pain of Raising Venture Capital
Mark Suster had a post today on how hard it is to raise Venture Capital.
Great post. And Tony Conrad from True Ventures left a fantastic comment on the post:
Sadly all too true. When you complete the process, you feel like you’re entitled to a “survivor of the VC process” club pass.
Amen. I wants me my badge!
There’s a misconception that “any old idea can get money” and that VC’s are running around just trying to give bags of money to code monkeys in cubicles (thanks Dilbert). That may be true. I’ve never seen it though. In my (very limited experience), raising money is hard. I mean like really hard. Like 6 months of 100 hour weeks kind of hard. And that’s after you get the “yes” from the VC’s you eventually work with!
I liken it (because I’ve done all of these, at least by proxy) getting married, writing a book and having a baby all at the same time.
It really is a strange and awful and wonderful and exciting and heartbreaking thing to raise capital. And in spite of the misconception above, the truth is that very few companies raise money. And even fewer companies that actually need it raise money. Back-of-the-napkin math shows that less than 0.01% of companies that need to raise VC actually do.
Anyways, once I have a few minutes I’ll try and share some of my thoughts as far as raising funding. I’ll probably also share some of the docs we used (sanitized of real data, obviously) for entrepreneurs looking to raise funding in teh future.
POSTED IN: Business
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