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Personally I'd revise point one -- do meet with some investors, even if you aren't planning to raise. At a minimum the experience is worth it (learn what they ask, how they think, etc.), but beyond that you're cultivating a relationship that may or may not lead to an outcome later. The first date is a lot more awkward if everyone at the table is thinking about marriage.


I think you're just better off working on the product and talking to customers (though obviously that idea is not original to me). Talking to VCs is a time trap and may further lead you to do the wrong things.

I don't think the dating/marriage analogy holds. If VCs are contacting you because your business is booming, you don't really need much of a relationship.


I don't think taking the time to talk to investors as a hedge is necessary or adds much to business strategy. If you want to build a bootstrapped business and may be open to VC at some unknown point in the future VCs will likely only care about business metrics. If they speak for themselves than most VCs will gladly meet, and it will likely be relatively 'easy' to fundraise. If you aren't looking for early stage capital, don't waste your time talking to investors when you could be building a business...

Now, talking to potential acquirers at any point in the lifecycle of the business is a great use of time, in my opinion. If you are open to the idea of eventually selling your company get close to the companies that might be interested in buying your company and stay close. Partnerships, shared customers, deep understanding of their technology and so forth


Why... they just want to farm for ideas, understand your execution, use that knowledge to launch a competitor they have a stake in, drive out all the alpha from the business in so doing, and make an exit leaving someone else to hold the bag.


Nobody does this. VCs rely a lot on reputation. The few slimy VCs I see get ostracized from the ecosystem; it's no way to land good deals with good founders.

The other paradox is that you can't have a good execution plan without good leaders. The ones who can execute better do something like Rocket Internet, and don't become VCs. VCs are happy to pay someone to do all the work for them.


They do that? That's slimy!


The absolute best way to raise money (to have leverage in negotiations) is to build a great company. Talking to investors doesn't get you there.

While there is a benefit to having relationships and them seeing you execute over time, it's easier to get a meeting if you have great numbers. How many VCs wouldn't take a meeting if your first sentence is, "We have a $150k in MRR and are growing at 20% month-over-month"? Any?

I don't know. Build your company.




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