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More in the 50 Questions Series
How does the structure of the VC industry impact investment strategy? | 50 Questions – What are the different types of instruments VCs use to invest? | What is venture capital? |50 Questions: How can I tell that a VC won’t invest?
Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful. This is #43 in the series.
Time is an entrepreneur’s greatest resource. If you don’t know whether your fundraising process is failing, your time may be wasted.
VCs don’t always want to directly say ‘no’ to a company, and this can mean waiting on a definitive answer for a prolonged length of time. You may have to produce more documents and provide more information. And then all this time could go to waste if they weren’t really excited about your company to begin with.
Not all VCs will waste your time, but often it is up to you to gauge their interest and decide how to act. To help you to spot the signs, Nic Brisbourne gives a guide to reading VCs behaviour in his latest 50 Questions post: How can I tell when a VC won’t invest when they aren’t saying ‘no’?