I guess we can agree to disagree on this one. VC's have every incentive to be honest and Founders have every incentive to accept an honest opinion. And you know what? It works the other way as well. Accepting someone's experienced opinion, doesn't mean one has to act upon it.
On one thing we all agree: VC's make (partial) decisions on what they know and what they know is what they are provided in a PD, executive brief, quick pitch, etc. So if the founder isn't very good at getting the message across, it doesn't mean it's a bad investment.
Not being honest with a founder and stating "we're not writing you a check for x reason", that founder now has something solid they can work with. If I'm a founder (which I am), seeking investment, I will be so appreciative of that person because they have taken 5 seconds and 10 extra words of their time to include into that rejection email, that one honest perspective that can make the difference whether my world changing widget becomes the go-to product of the century, or takes a short path to the graveyard.
But what if the investor just "didn't get it". Of course that can't happen, right? Founders need to be coachable, but surely not an investor! What if by being honest, that investor sends that rejection letter, and then receives a response that says, "no, that's not the way it works. You didn't get it, so here is a clearer explanation". And then as it turns out the founder was right - the investor just didn't get it.
See, everybody looses in scenario number one. The common one.
Of course investors will cross paths with founders unwilling to learn. That's to be expected. I would think that if an investor isn't willing to accept this as part of the job, perhaps another career is more suitable. A dedicated founder's number 1 mission is to get their product or service to market. I also believe the number 1 mission of an investor, should be to fill the coffers. Both pairs of eyeballs and ears should always be open to listening and seeing.
Yep, hard truths are hard, and I'm no investor. But judging by the percentage of hits as compared to misses, a whole lotta somebody's - aren't getting it.
I guess we can agree to disagree on this one. VC's have every incentive to be honest and Founders have every incentive to accept an honest opinion. And you know what? It works the other way as well. Accepting someone's experienced opinion, doesn't mean one has to act upon it.
On one thing we all agree: VC's make (partial) decisions on what they know and what they know is what they are provided in a PD, executive brief, quick pitch, etc. So if the founder isn't very good at getting the message across, it doesn't mean it's a bad investment.
Not being honest with a founder and stating "we're not writing you a check for x reason", that founder now has something solid they can work with. If I'm a founder (which I am), seeking investment, I will be so appreciative of that person because they have taken 5 seconds and 10 extra words of their time to include into that rejection email, that one honest perspective that can make the difference whether my world changing widget becomes the go-to product of the century, or takes a short path to the graveyard.
But what if the investor just "didn't get it". Of course that can't happen, right? Founders need to be coachable, but surely not an investor! What if by being honest, that investor sends that rejection letter, and then receives a response that says, "no, that's not the way it works. You didn't get it, so here is a clearer explanation". And then as it turns out the founder was right - the investor just didn't get it.
See, everybody looses in scenario number one. The common one.
Of course investors will cross paths with founders unwilling to learn. That's to be expected. I would think that if an investor isn't willing to accept this as part of the job, perhaps another career is more suitable. A dedicated founder's number 1 mission is to get their product or service to market. I also believe the number 1 mission of an investor, should be to fill the coffers. Both pairs of eyeballs and ears should always be open to listening and seeing.
Yep, hard truths are hard, and I'm no investor. But judging by the percentage of hits as compared to misses, a whole lotta somebody's - aren't getting it.