A VC in Vacationland

Gnomes' three phase business plan (Photo credit: Wikipedia)

Venture guys have three ways of reacting to a start-up pitch. What do each of them mean? Well, here's my take on it:

Not Interested–I try and be honest with people up front. I will tell them it is not in my investing space, or that I do not understand the technology. It does not mean that the idea is bad, just that I cannot see how I can help you be successful. Your response: Move on and find a venture guy who is passionate about your space.

Interested–I'm interested enough about your idea to continue a dialogue, but you probably are missing some big parts of your business plan, like an effective marketing strategy (Note–if I see one more "viral" marketing plan, I am going to puke. There is no such thing). Your response: go away and fix the problem areas and come back and see me.

Intrigued–now we are talking. You have a solid idea, I like your business plan, your founders are credible, you have spent enough time getting to know me for me to trust you, etc. etc. Let's do business. Your response: ask for a check.

Obviously, this is overly simplistic, but it does give you a few insights into the mind of a venture guy as he or she thinks about investing in your company.