I was on TiE Rockies panel this past week with Vipanj Patel (iSherpa), Mike Devery (Silicon Valley Bank), and Brad Feld (Foundry Group). The theme was “Funding Your Business in Hard Times”.
During the Q&A, a person in the audience offered the assertion that too much emphasis on preparing an extensive and polished business plan. He wanted our reaction as to whether the idea was far more important, and that it should be presented in a concise executive summary and a follow-up face to face meeting. My response was that even more important was establishing a relationship and positive impression well in advance of presenting an idea. The investors need to conclude they want to fund you. Get over this hurdle first, and then selling the idea will be far easier.
I received an email from Larry Nelson of the Internet media station w3w3 (http://www.w3w3.com/). With his permission, I am posting it:
I really enjoy the panel at the TiE event this past week. I liked the point you brought up: ‘Establish credibility with VCs before you need money.’ It reminded me of an interview we had with General Ebeharte when he said, ‘Don’t exchange your business cards for the first time during a security crisis.’
Thanks Larry for the comment and for letting me post it on the blog.
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