The Funded = Equity?

December 17, 2007

Earlier this year I pointed out a new site for entrepreneurs looking for venture capital called The Funded. The site generated quite a bit of controversy in the VC community. Venture capital firms love to talk about the size of their funds and the rate of return their investments generate, but post a few comments about how easy or difficult to work with and watch out!

In the late 90’s I visited more than 100 venture capital firms raising money for my startup. I have three notebooks full of notes about what each investor was looking for, what questions they asked, what they said they wanted and what I suspected they wanted. Today, entrepreneurs can save a lot of time by simply creating an account on The Funded to get a fairly accurate picture of more than 2,800 venture capital firms. I checked out the reviews on the firms I spent time with and the reviews were generally dead on. Of course, there are a few sour grapes posts, but sour grapes are often the only thing you get when you talk to the wrong VC.

My advice? Check out The Funded prior to each meeting. Take notes and after some time has passed, post your thoughts to the site (either publicly or anonymously).

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