Nivi · May 2nd, 2007
You probably know that we love our commenters—we want to make babies with them.
From now on, we’re sending a bona fide Venture Hacks mug to the registered user with the best comment of the week. We don’t care if this bankrupts us. This one-of-a-kind collector’s item is emblazoned with the Venture Hacks motto on the front:
And the subtle new Venture Hacks logo is on the back:
(Yes, we stole it from Van Halen.)
Topics Administrivia
The front is great, but the back is !@#$% hilarious.
So far my startup has been self funded, but now I’m tempted to take some VC, just so I’ll have some keen insights that will get me a shot at getting this mug!
Best. Logo. Evar.!!!
I too am new to this strange world…confusing terms, inflated egos, dream crushers (and stealers) at every turn. Tread cautiously neophyte, the words of the VC can be intoxicating.
Three tips that have served me well:
1.Enough of the billion dollar market opportunities for the industry you are in. Please. If I hear another fellow entrepreneur say that his market opportunity is $10,000,000,000 and he is going to have 2% market share in year two I am going to puke. No you aren’t, and well all know that.
2.Don’t fall into the “What is your valuation?” trap when a VC asks. You probably don’t know or will overstate it AND THEN HAVE TO JUSTIFY IT (and you will look silly). Just tell them how much money you are looking for to pursue your idea the right way. You can get into the specifics of valuation when you have a term sheet.
3.Know your audience…I just listened to a kid present his idea on alternative energy. It was probably a good idea, but I don’t want to know about the DNA sequence for algae. He was thirty minutes into his presentation when I learned that algae could be used as a replacement for diesel fuel. By then I had a headache and wanted to go home.
It is amazing how motivating a coffee mug can be.
.02 from the Understand Man
About me…an incredibly intelligent, handsome, and modest entrepreneur that has a rapidly growing tech company. I’ve talked and presented to many angels and VC’s, read countless business plans, and listened to dozens of fellow entrepreneurs pitch their ideas