Comments on: Information is the (other) currency of venture capital

By: Information is the (other) currency of venture capital «

Information is the (other) currency of venture capital « — Tue, 08 Sep 2009 16:48:59 +0000

[...] PDRTJS_settings_263583_post_397 = { "id" : "263583", "unique_id" : "wp-post-397", "title" : "Information+is+the+%28other%29+currency+of+venture+capital", "item_id" : "_post_397", "permalink" : "http%3A%2F%2Feactionnews.wordpress.com%2F2009%2F09%2F08%2Finformation-is-the-other-currency-of-venture-capital%2F" } From cdixon.org [...]

By: Information is the (other) currency of venture capital | Igniting Startups - nPost

Thu, 03 Sep 2009 16:47:42 +0000

[...] From cdixon.org [...]

By: William Carleton

William Carleton — Wed, 02 Sep 2009 23:12:02 +0000

Chris, you're right about the line that gets drawn. I don't know as much as you about the accuracy of thefunded as I've just started following it, but what you say there makes sense, too. Maybe to the extent more participate -- the content, the malcontent, and those of us moving between those two poles by turns -- there can be something approaching the liberation of transparency that is being delivered/promised in other fields.

But I do think what you do, what Fred does, what thefunded does, all
move us closer there, because these efforts shock and amaze and
challenge the (I'll call it 40+ and be age-ist about it) generation
that yet grew up in professions that took as axiomatic that information should be guarded jealously.

It's hard, because the best example I can think of of an industry that is moving to transparency, sharing what was once regarded as competitive information, I can't talk about (due to client confidentiality)! So there is the vision, co-existing with the 20th Century norms and mores we stll labor under day to day.

By: pescatello

pescatello — Wed, 02 Sep 2009 22:21:49 +0000

Interesting post. I have always found that one of the most valuable things a VC does it tell you about competition that is about to appear. Lots of times, companies remain in “stealth mode” before they launch and knowing about them is incredibly helpful. Both to plan your product (to differentiate) and to adjust your pitch

By: chris dixon

chris dixon — Wed, 02 Sep 2009 18:31:23 +0000

Reid – absolutely agree. As I'm sure you know, the grapevine can cut both ways. I've seen deals that for no apparent reason suddenly become “hot” and everyone wants in. Good subjects for future blog posts – thanks.

By: Reid Curley

Reid Curley — Wed, 02 Sep 2009 17:53:08 +0000

Chris, valuable insights for entrepreneurs. I would add a caution though because the VC grapevine can also really work against you if you play it wrong. The word that your deal is a turkey gets around much faster than you do.

If you give one VC a lousy pitch, you can overcome that. Two maybe. Beyond that, once your deal has become "shopped" and has not generated any buzz, it is very difficult to recover. You can imagine the conversations very easily, "Yeah, I've already seen that guy, but I don't think he is going to get any traction." It becomes a self-fulfilling prophecy.

Try to play the same information game the VCs play. Talk to as many VCs and entrepreneurs as you can before you try to raise money. Use that information to improve your plan and your pitch, and then go out with your game face on. VCs can be hard to get to outside of the deal context, but thefunded.com and venture blogs are easy enough and should be required reading.

By: chris dixon

chris dixon — Wed, 02 Sep 2009 16:56:17 +0000

Thanks, WIlliam. Re disruption. I love Fred's blog and he's more transparent than anyone, but notice how he never talks publicly about valuations, revenues, deal dynamics, backstories, etc. This is the stuff you need to know in this business if you are investing or raising money.

@thefunded is trying to make public one critical thing – the reputations of VCs – and I applaud Adeo for that. In the past you had to get that solely via the gossip network. The only thing I worry about there is simply it's accuracy – many of the ratings don't jibe with what I think most experienced entrepreneurs would say. Maybe this is due to some selection bias – people who had bad experiences are more likely to rant..?

By: William Carleton

William Carleton — Wed, 02 Sep 2009 16:12:02 +0000

Chris, you're right about the line that gets drawn. I don't know as
much as you about the accuracy of thefunded as I've just started
following it, but what you say there makes sense, too. Maybe to the
extent more participate -- the content, the malcontent, and those of
us moving between those two poles by turns -- there can be something
approaching the liberation of transparency that is being delivered/
promised in other fields.

But I do think what you do, what Fred does, what thefunded does, all
move us closer there, because these efforts shock and amaze and
challenge the (I'll call it 40+ and be age-ist about it) generation
that yet grew up in professions that took as axiomatic that
information should be guarded jealously.

It's hard, because the best example I can think of of an industry that
is moving to transparency, sharing what was once regarded as
competitive information, I can't talk about (due to client
confidentiality)! So there is the vision, co-existing with the 20th
Century norms and mores we stll labor under day to day.

By: pescatello

pescatello — Wed, 02 Sep 2009 15:21:49 +0000

By: cdixon

cdixon — Wed, 02 Sep 2009 11:31:23 +0000