A VC in Vacationland

Often, entrepreneurs approach me with the singular reason of having me write them a check. I can always tell in a few minutes that they are not that interested in what I might have to say about their company, as they are constantly going after the 'close'. I often wish I was an impolite person and just end the conversation–right then.

Why? Advice may be more important than money for many start ups. As I have said in previous posts, I rarely see a bad idea, but I often see an incomplete business model or a team without the requisite experience. So when I offer up suggestions that will make your idea more saleable, don't act like I am calling your baby ugly. I'm not. I'm just trying to help you.

I always offer to look at a next iteration of a business plan ot team, once changes have been incorporated. rarely do I get taken up on my offer. You are the loser, not me.

Here's a few thoughts on conducting a first meeting with a potential investor:

1. Choose the right person–I'm a fan of having initial meetings with strategic investors–ones that can give you more than money. That way, you can get insights on why your idea and plan may lack some essential aspects critical to market success. As a bonus, they may offer to be a mentor.

2. Be interested in the investor–too often, entrepreneurs launch into their pitch without asking anything about me. I'm a person as well and deserve a little respect, besides being a guy with an investment fund. Try polite questions to make the investor think you care about him or her.

3. Be open to advice–don't get all defensive. Remember that the person across the table listens to many pitches in a week and thousands over a decade, has had some good successes (in your space–see 1. above) and is painfully aware of the pitfalls that can trip up a start up. Ask probing questions about why or why not the person thinks you can be successful, or what else is needed to achieve that goal.