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August 07, 2011

Comments

Abhishek Balaria

This post is spot on! Earlier this year, a friend suggested that he will put us in touch with VCs, just so that they know about us. Needless to say, VCs expected full-blown piches and we were not even looking for money. We were well capitalized and profitable! We ended up wasting a lot of our time (and theirs too) and getting distracted.

Lesson learned! Thanks for sharing.

AdamSingolda

Allen,

Good read, and I agree.

Wrote about it few days ago.

http://agoldsin.com/?p=406

Adam

Saadiq

Hey Allen,

First, when next you're in New York, it would be great to catch up.

To the question at hand, what you say makes a lot of sense. Never meet with a VC when you're not prepared. Regardless of if you're raising, having a lousy first impression has negative ramifications for you.

However, what is the best way, in your opinion, for an entrepreneur to create new relationships and figure out who they want to work with? I meet with people who can potentially be helpful at many points and those that show they can be the most helpful will clearly be within that set I pursue when I am looking for new investment, but your advice seems to run contrary to that.

Thanks.

Saadiq

twitter.com/bfeld

Allen - I put this up with some discussion as the VC Blog of the Day on Ask the VC at http://www.askthevc.com/wp/archives/2011/08/morgan-why-entrepreneurs-should-never-meet-vcs-unless-theyre-formally-pitching.html.

While I respectfully disagree with your perspective, I think it helps make the point that there are (a) plenty of different points of views, (b) that not all VCs, and (c) this means that entrepreneurs should know who they are dealing with before they just start pitching, or even building a relationship.

Allen Morgan

Thanks Brad. [N.B., entrepreneurs, this thoughtful reply is why you want someone like Brad and his Foundry partners to invest in you (Suster, too)]. Smart reply, frames the debate well and (Brad & I know each other) civil attempt to do the most important thing, which is advance the debate to help entrepreneurs be smarter about the 'black box' VC financing experience (see this post: (http://allensblog.typepad.com/allensblog/2011/06/the-vc-black-box.html)). The more we help entrepreneurs and startups navigate this process, the better for all of us.

I'm working on a "reply" post that will attempt to highlight points of agreement among the posts that have been mentioned, as well as refine the point I intended to make in my original post - which I would still urge entrepreneurs to follow. But, being forced by folks like Brad to re-examine and improve your arguments is always a good thing.

Thanks again, Brad.

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