Here’s a tip:
When you get an email or a call from a VC Firm, the first question to ask is to get them to introduce themselves. If its an associate – or if you are getting an email, check up on the site of the firm and see if their name or picture is listed anywhere – just ignore them. They are timesinks and just doing their homework for the monday meeting where they have to present a list of companies.
They cannot promise you funding and if they send mails saying they are exploring the opportunity to fund you (and they’ve made this promise to teams that are not even incorporated or fulltime into it), call them on their bullshit.
It takes us (at the startup centre) atleast three weeks to get a team back and focused on the product and business, once they get one of these stupid emails. The team thinks they are already fundable, and someone from a VC firm reached out to THEM! OMG.
I believe it is irresponsible for VC firms to do this, and they need to put their associates on a leash or disclose the intent of the mail very clearly. “Hi, I am so and so from xyz firm. We are making a list of companies we’d like to keep an eye on and want to see if you’d be open to talking to us about what you are working on”. If thats not the communication that is going out, thats simply misrepresentation and I have every intention to start blacklisting these associates and will move up to the fund by itself. (and i might call you out publicly).
I came across another startup earlier this week which is chasing a fund that does typically series B rounds, and the individuals have no intentions of letting these poor founders know of it, when they are trying to raise 100K. I told them that they are a later stage fund, but you know that line investors use “if its a great team and idea, we dont mind writing a 100K cheque?”, well thats been used and they are dragging this team around. Teams do over-estimate themselves, cause they are neither a complete team, nor is the product market validated and they are losing precious time chasing a wild goose, instead of doing what is critical for the startup.
Whom do we blame? Lets start with – startups, better wisen up.