Tuesday, March 20, 2007

What Venture Capitalists are Really Thinking...


Seth Godin has done it again. His viewpoints on what he calls a "cottage industry" are very interesting. For any company that is out there looking for capital for their business, take some time to read the following blog entry on Seth's blog.
As he states, VC's like to invest in areas they've already invested in. They call them "platform companies". How do you figure out if you fit into one of these platforms with your company?

The realistic entrepreneur's guide to venture capital

Optimism is a key to success, but it doesn't necessarily work so well when it comes to VC. Because this is a cottage industry with thousands of players, all with different objectives, it's very easy to keep knocking on doors, just waiting to find the right match. It's also easy to spend a year or more adjusting your business to what each VC asks for ("bring me the broomstick of the wicked witch!" while you could have been out there building a real organization.)...

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