VC’s Don’t Care About Your Small Company

For those of you who know me, I am a visionary. I like big risks and I’m not afraid to fail and lose everything – I’ve already been there done that. Yeah…it sucks while you’re in it, but you get right back up and start building again.

My dad always taught me to either go big or go home. We never went half ass – it was either all in or not in at all. Let me tell you, this was a great foundation for my startup life.

The same is true when it comes to VC’s. They are all in. They are taking big risks on your startup and for that, they are looking for a big win. They want deals that present an opportunity for a 10x return – minimum.

VC’s could give two shits about your little startup company that is going to own 30-50% of your small market – have some vision for crying out loud – that is if you are trying to reach VC’s.

I will also tell you from experience that it is just as hard to build a small company as it is a large one – you will never find me building something small again.

If you want a VC’s attention then go all in and build something that has the potential to scale and show a beauty of a return.

I am no VC, but I am speaking for some of my friends that tell me the horror stories. If your deal doesn’t have the potential for a 10x return then don’t waste their time.

——-

What about you? 

What are you building? Does it have the potential for a 10x return – minimum?

 

It’s more than the green stuff

Here’s the deal. If you’re smart, you realize that “the right investors” can offer you way more value than just the green stuff they are putting into your deal. I think entrepreneurs – because they are desperate, jump way to soon and end up in bed with someone who might have money, but beyond the money, they are pretty much useless.

Instead of looking at the investor as, holly shit this guy has a ton of money, look at him like, who does this guy know? What can he teach me? Who are his contacts? How well does he know the industry I am in? Try this next time and I promise you will be thanking me later.

I share this because I think all entrepreneurs F this up at some point in their entrepreneurial career. I have, you will, everyone does. Why? Because we are normal people who get excited and end up pulling the trigger to soon. Take my advice and the thousand other entrepreneurs that have pulled the trigger to soon. Be smart.

The other thing that I’ve learned, when your dealing with venture capitalists, they know their shit and they have been around the block a few times. And, when you get the right VC involved in your deal, it is the difference between achieving minimal vs. maximum success.

Here is where VC’s tend to offer the most value: 

1. Their networks: They’ve spent their entire life building their network. This includes: investors, partners, talent, vendors, distributors, etc.

2. Experience, knowledge, and wisdom: They can help you understand what it is going to take to make your deal a huge success. They have been there and done that. Listen to them. If you think you no more, you need to be bitch slapped.

3. Sources to other green: When you spend your entire life building and growing companies you end up having several investor and VC relationships. Tap into this, It’s the fastest route. I promise.