Vineesh's Thoughts

Ohh boy! This was a don't-miss-for-anything session for those who are desperately looking to get funding.

Here was a VC who clarified so many doubts that run around in the minds of entrepreneurs and those in the making.

An important point he made - "Less than 2% of startups will raise money from an investor".

I was of the outlook that a VC will tear apart the founders :( (I am just starting out!! So just caught onto a few wrong notions. ;))

Some gyaan I gained:

• How do I select an investor?
• One I am comfortable working with. Someone I can trust.
• How do I find someone I'd be comfy working with?
• Look at the portfolio companies of the VC and talk to some of them.
  

• No VC is into a business for perpetuity, so an entrepreneur can't just sit with the money and do what he feels like. Only, if you aren't moving does the VC push you around. VCs put in money for 3-5-7 yrs and they need to make money out of an investment. When you and I put money in a Mutual fund, aren't we looking for returns? Ditto for the VC!

• The VC negotiations - Term sheet is basically a list of terms that you must agree to for VC to invest and most of these are non-negotiable and primarily investor rights.

• Founderitis - Founder's tend to believe that what is good for me is good for company. It is extremely important to realize that this is not always true. However, what is good for the company shall always be good for me. VCs have invested in the company and not in you, so decisions like stepping down from CEOship sometimes seem to be bigtime issues, however once you are into the journey with a VC on board, you need to realize his perspective. If he's making money (which you had accepted while bringing him in), he will make money for you too. If you didn't want the money, why the hell do you need a VC anyway? ;)

This session perhaps made me realize a lot more than I can put down in words. I wish every entrepreneur would have been at this session.