jangl spent the past month fund raising. It wasn't nearly as painful as it was in the past, but some moments were packed with angst. See, when you go out and raise venture capital, you're selling a piece of your company, as you probably know. When we did our first round last Fall, we were selling an idea, the promise that two guys were worthy, the promise of a go-to-market partner, hope and prayers that we could do something that would create value.
Well, just seven months later, we were at it again, raising a second round. . .this time selling a bigger and more proven team, real market traction, the completion of two consumer beta rounds, and imminent plans for a wide launch.
We went out on this extended pitch over the past several weeks, while we still had plenty of runway, mostly because we didn't want to find ourselves in the dead of Sand Hill Summer trying to rally.
While Douglas and the crew were busy getting the wheels up at the ranch, Ben, Pradeep and I were out pedaling. The downside to fund raising is certainly the time it takes from focusing on executing. Driving in the Prius with XM helps, but it really is like crossing seven seas for us. Plus you're up all night revising slide decks and praying the demo gods are on your side.
The upside is the great Thai place on University (the one around the 400 block), the time-killer shopping spree at Stanford Shopping Center (too bad the closed Luomo)... I always end up with some new duds. The other upside is that if you're meant to do this, you thrive on every bit of it.
I must say though, fund raising is like a sport anymore. You're going to get in front of all kinds of folks...folks that are genuinely nice and fun to talk to, folks who can't stay awake, folks that only get a portion of the story, folks that give you confidence that you're really onto something, folks that keep their face in their lunch, folks that ask good and tough questions and folks that ask totally irrelevant questions. It's a delicate balancing act. You have to have your act together and truly anticipate the questions VCs will ask.
You have to remember that no one knows more about your business than you.
At the same time, you have to illustrate an open mind, entertaining their thoughts and musings. If you don't ebb and flow on this, it can cost you. In a first meeting, VCs will often bring another partner and/or an associate to begin. This way they can deliberate in real time and, fundamentally, decide: invest more time to learn, or kill the deal quickly.
We always punted quickly when we weren't feeling the love. "You got to know when the hold 'em, know when to fold 'em," per Kenny Rogers.
There is of course the handful of meetings you have, where the real good partners/firms lend some great insight or provide a great intro.
At the end of the day, a good fund raise rally leaves you tired, relieved, accomplished, a little bit smarter.
After all was said and done during this latest round, one firm stood out for us, and we, apparently, stood out to them.
And that makes three.
Now I just need some of that Thai food.
-mc
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