Getting a VC Meeting

Jan

2009

My experience in fundraising has been primarily with Angel Investors, but I had to post the advice I received from Bill Bryant a venture partner from Draper Fisher Jurvetson regarding how to get a meeting with a VC. Not only is this good advice while working the VC scene, most of these tips also work very well to get in front of Angel investors.

Bill’s comments & tips are below…

You should know that the likelihood of a response (let alone an eventual investment) to an unsolicited, over the transom email approximates being attacked and eaten by an Australian man eating croc here in Puget Sound.

Investors receive literally thousands of plans. I believe that DFJ received something on the order of 12,000 plans in the US (30 thousand worldwide across all affiliates). That’s 1K per month, ~ 30 each and every day.

Unless a deal is referred in by someone known to the firm, the plans are not reviewed. Not because they aren’t some viable businesses but because there isn’t enough time in the day to properly review.

If you want your plan to be reviewed by a VC that you do not know, in this order, here are the best ways to accomplish the objective:

1) Get an entrepreneur who has made money previously for that particular firm to introduce your plan to the partner that they worked with. This is a 100% guaranteed approach.

2) Get an advisor or board member who has been working with the company for a few months, and has credibility and knowledge of that firm & its partners through previous deals or general reputation, to introduce your plan.

3) Get one of your reputable angel investors, hopefully one who is known to that VC, to make the introduction.

4) Get your attorney to introduce (but only if they are from a group of legal firms known to do early stage corporate finance).

5) Get your commercial banker from the very few banks that cater to early stage companies to make the introduction.

Viewing 6 Comments

Alexander Kintis 1 year ago 1 point
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Another way can be going through an agent/broker who has better/more access and relationships with different firms (similar to what was stated/mentioned but not entirely the same)

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http://www.kinalcorp.com

Derek Johnson 1 year ago 1 point
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My personal opinion, agents/brokers aren't worth it. If you and your product can't sell itself I feel there is something wrong usually.

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http://www.thederekjohnson.com

Alexander Kintis 1 year ago 1 point
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Just in reference to the "connections" they may have. Like Bill said, "Unless a deal is referred in by someone known to the firm, the plans are not reviewed. Not because they aren’t some viable businesses but because there isn’t enough time in the day to properly review."

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http://www.beatingaddiction.com

Nate Whitehill 1 year ago 1 point
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Great article man. Good and very true advice for anyone looking to ever approach an angel or even VC investor for money. I know a few people now who have raised money, but I wonder if anyone has even gotten eaten by a Puget Sound crocodile? ;-)

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James 1 year ago 1 point
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This is an excellent post that gives entrepreneurs insight to the realities of cold-pitching vc's over email. It's a lot like sending an unsolicited manuscript to a major publishing house. It's not going to get read. Better to be referred by someone they already know and trust. I would say, however, that vc's should consider being more clear about this on their contact us pages. Even DFJ (http://www.dfj.com/entrepreneur/index.html) states that they "review all submissions" which we know is not the case. The courteous and positive tone is a good thing, but it would probably be better and more direct to just say, "We love reviewing plans referred from people we know. Work your network and see if it touches ours."
Thanks for the post, Derek. Good insight for entrepreneurs.

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Derek Johnson 1 year ago 1 point
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Yea, good point, why do then even ask for submissions on their website?

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