18 February 2008 by Grizz.

Investors are never in a hurry.
All investors work at their own pace and in their own style. Some will decide right after reviewing an opportunity that they want to invest, and diligence is a matter of proving their instincts are correct. Other investors will take months…to say “no.” It’s totally groovy to ask a potential investor how they prefer to review opportunities; asking such an open-ended question will elicit all kinds of good information.

They get paid to judge risk.
Professional investors are essentially risk managers. They spend a lot of time asking themselves “what is the best (and worst) that can happen if I commit funds to this venture?” Everyone has personal bias, but that bias is based on previous experience with similar circumstances. Make the bias work to your benefit by asking potential investors what kind and size of deals they have completed in the past.

Fund size, focus, resources, age of fund, and current deal flow will dictate interest level: It’s called “timing.”
You can show an investor your business plan, but ultimately, if they aren’t investing–for whatever reason– don’t waste anymore time on them; move on to other prospects.

VC’s are NOT stupid, arrogant, lazy, worthless, dishonest, mean, living off their spouses, and just trying to get to the golf course.
Well, most of them aren’t. Someone thought enough of them to trust them with their money. Misconceptions about investors, especially VCs, are legion. Do thorough research about a potential investor before approaching them. It will save you a lot of time and effort.

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11 February 2008 by Grizz.

So, how do you like New Mexico? (or some other non-relevant inquiry): I am so confused I don’t care about your company any more.

We don’t invest in that area: We’re done here; leave me alone.

Keep me advised: If I see movement I might get back to you.

Send me your plan: I’ll have an associate see what they think.

When can we meet?: I am personally engaged and your timing is right. OR I haven’t found a good reason to say “no.”

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1 February 2008 by Grizz.

1. We only need $1 million to reach profitability.
2. This thing will sell itself.
3. Recruiting the management team will be easy.
4. Marketing? Yeah, we’ll do some advertising…
5. We don’t need a formal quality program; everything we do is high quality.
6. Plan? We don’t need no stinking business plan!
7. Market Research? I understand the market perfectly.
8. We know exactly what that first product is going to be (so it will only take us a couple of months to develop it, launch it, and sell it).
9. Public Relations? The receptionist can do it!.
10. We don’t need a budget. (we’ll just fire people when we run out of money).
11….we’re all friends, we’ll work out the compensation issues later.
12. The customer does not know what he wants. I know what he needs because I am smarter than he is ( the average customer is stupid).
13. We don’t need to worry about handling customer service right away because our product will blow them away.

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