What Really Matters in the Debate Between VCs and Angels

Author:. Glenn Kelman.
Source:. What Really Matters in the Debate Between VCs and Angels.

It all started. July 30 at 9 am. , At a time when Dave McClure (Dave McClure) has published the post, in which venture capitalists compared with the dinosaurs. Then, TechCrunch posted a. four of the televised debates. between venture capitalists and angels, reflecting on the fact whether the capitalists are ready to Silicon Valley to test themselves on the strength, and no doubt, highlighted. Debates on the air the morning of September 10. Dave McClure, and between Hornikom David (Dave McClure vs David Hornik).
Important debate between two of my favorite favorites in Silicon Valley, the people here in Seattle is preparing to take a particular point of view of each. Differences in fees, fund size and management structure is very important for the contributions of those who entrust their money to venture capitalist.
But the economic arguments are of little value for the entrepreneur, who have different estimates of each potential investor. Negative feedback - it's just a different factor called for a high estimate of the investor, which are so fond of entrepreneurs. For example, what guided Redfin during recovery of funds:.

1. 
   Estimating the cost, timing. - Smaller than the stock must be sold, the better.
   


2. 
   The prestige of the investor. - Used recruiters and journalists, especially at an early stage in order to understand whether you are worthy of inspection.
   


3. 
   Relations with the board member, partner. - If you can hold a conversation with a man taking an investment decision on the topic of ...
   


4. 
   Portfolio. - If you can communicate with colleagues from other companies that are in your portfolio investor?.
   


5. 
   subsequent funds. - Some investors may get you into the next rounds of capital raising, some are not, and some will simply go on without you.
   


6. 
   An understanding of management practices, participation. - Is now fashionable among investors say that they need only money. However, I also have a different experience: Emily Melton (Emily Melton) has convinced Redfin focus on search engine optimization, which now accounts for 40% of our traffic. And Paul Goodrich (Paul Goodrich) became the first winner of this highly successful business partnerships. The investor has invested money in your business, not even notifying about it. A pleasant prospect? . Two of my favorite investors - Marc Singer and Fred Wilson (Marc Singer and Fred Wilson) - it is not. If there is none, entrepreneurs tend to underestimate the importance of the initial and the influence of a board member with whom they have to work the next five years.
   

C taking into account all the above, I continue to enjoy all these skirmishes. I store popcorn before every repetition of debate. However, I would like to wish both sides to talk more about what is important for the entrepreneur, and a smaller one that is important for partners.


Translated for the blog dennydov. blogspot. com.
Edward Svistunov. @ symphonius.

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