June 15, 2012, 10:47 AM —
Reacting to criticism that VCs are jerks because they don't follow up, Breinlinger set out to accept every pitch request and give honest feedback to rejected proposals. Number One reason is the CEO / Founder doesn't have the experience or leadership skills needed. Next is the team, either co-founders or other execs, who don't measure up. But some didn't like the hard truth, so Breinlinger started telling them things like, "We need to see more traction."
Three years ago, Healy Jones wrote, "It's not me it's you: the untold reasons startups don't get venture capital." The main reason? The founders, especially for those who get lots of meetings but no money. That means good idea, bad exec. VC partners have to work closely with the companies they finance for years, so if the founder doesn't inspire confidence, the checkbook stays closed.
I can handle the truth
if I was in the shoes of the founder, I'd definitely want to be told that I am lacking skills or gave a terrible presentation even if it resulted in a tense or confrontational conversation.
Peter Holcomb on acrowdedspace.com
One of the hardest things I had to do one time is to tell a founder that I thought he was playing far too fast and loose with the facts, and that it would come back to bite him.
Chris Yeh on acrowdedspace.com
We also often related to the lack of an unfair advantage, saying that by knowing their idea we could have assembled a team ourselves and do it better given our skills.
Stefano Bernardi on acrowdedspace.com
I hope I can build my company without having to deal with two-faced VCs.
Roy Gavish on acrowdedspace.com
Mike on startable.com
If your startup problem was you, would you like the VC to tell you that fact?