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1/ In the “this makes no fucking sense category” I give you : super fast funding rounds.
2/ Fast funding rounds done well are great - meet strong investor, have meaningful engagement and alignment, get money in bank, get back to work
3/ But here’s what I’m seeing - “I talked to a few relatively random sources of capital, I kinda committed to the first one who gave me a term-sheet and now I want to make a decision within a few days and I’m oversubscribed”
4/ we run through the list of investors together - one’s good, one’s off geo, one’s decidedly weak and doesn’t have a great rep, one’s a late stage fund who wants a foot in the door...
5/ and my simple question to the founder is this: what’s the rush?
You’re clearly getting a strong response from the market, can’t you take three weeks to optimise this properly? I mean, would you ship your product half-baked? Did your prospective investors even do the work?
You’re clearly getting a strong response from the market, can’t you take three weeks to optimise this properly? I mean, would you ship your product half-baked? Did your prospective investors even do the work?
6/ I’ve seen this multiple times now and it pains me. The logic of a fast process trumps the careful relationship building and selection of investors who will be with you for a long time.
7/ Founders are not convinced they are getting the best investors but they just want to get it done. We’re confusing speed and efficacy. It’s a recipe for disaster.
8/ there will be blood.
PS / And yes I write this in full awareness of the fact that sometimes (rarely) I do move extremely fast - link.medium.com/ZqOuE5LbTX
