Comments on: 11 tips for the VC pitch

By: Tamer

Tamer — Wed, 03 Mar 2010 01:38:12 +0000

Thanks Satya. Very simple and to the point. This input is very consistent with my experience with VCs. I love the “Raise money when you don’t need it.” It that a suggestion or the reality of when VCs are ready to invest in you!?

By: Satya Patel

Satya Patel — Tue, 27 Oct 2009 02:55:01 +0000

The first tip emphasizes that you never want to raise money when your back is against the wall. Otherwise, you lose your leverage with investors and most certainly will get terms that are less favorable than you might otherwise. The second tip speaks to the difficulty in maintaining fiscal discipline when you have extra money sitting in the bank. You want to raise enough money (with some cushion) to achieve the milestones that you have set out for your next financing. As you mention, this prevents you from taking excess dilution. But more importantly, it prevents you from building your business in a manner that might not be sustainable without massive pools of available capital.

By: David Lifson

David Lifson — Mon, 26 Oct 2009 22:51:26 +0000

Thanks for the tips. On your last slide, you give two tips that seem contradictory: “Raise money when you don’t need it” and “Too much money can be as bad as not enough”. My company is doing a seed round now ($500k – $750k) and I think we’ll have the opportunity to raise more than we need, but my inclination is to not do so to avoid too much dilution. Can you speak to that a bit?

By: Anand

Anand — Sat, 24 Oct 2009 20:34:58 +0000

Good stuff Satya. I heard from the guys about the portion where you talked about the “eat” vs “dream” aspects of the plan/business at FGVN. Think that is a key insight entrepreneurs would benefit from. We definitely have.

By: Steve Woda

Steve Woda — Fri, 23 Oct 2009 16:09:21 +0000

Nicely done Satya. Good presentation, and great advice for entrepreneurs.

By: Don Rainey

Don Rainey — Fri, 23 Oct 2009 15:40:57 +0000

Nice post, like the use of cartoons.