So it looks like things are getting much more interesting for Mike Glanz and hireahelper.com, the subjects of my recent post Is There a Catch 22 of VC Funding. The founder at www.thefunded.com noticed the flurry of comments and my post here (which he called “mainstream media,” not bad for the second week of this blog’s existence) and featured “the debate” on the main page.
The comments to Mike’s open letter go from don’t “whine about it” to “the reason is you … be prepared to change your assumptions” to “get a seasoned VC lawyer” and on. Several agreed with something I wrote, that perhaps getting the VC money isn’t the best thing for that company now. That is the old “be careful what you wish for” routine, which is overused, but that is because it so often fits.
The thread highlights management track records. Mike described his team as “two small business owners and a couple whiz kids.” Several people suggested recruiting at least one experienced team member who has been with a successful startup funded by venture money. “You need a bankable name on your team. Just be prepared to give up a lot of control and % of net in return.”
Others suggest aiming more strategically at getting less money now and pushing the venture further up the chain later, after proving the concept and the team.
And of course the “VCs are sheep” motif comes up as well. One person says “VCs are like visionary sheep. Only one of them has the guts and the vision to try something new and then the rest follow.”
Most interesting, perhaps, is that the stir seems to be giving him better leads to getting a real hearing, and some good advice, and possibly some strategic angel money to push his venture forward. Whatever works! I’ve asked him to keep me up to date, and I will post when I hear more.
-Tim
Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.
