The Perils of VC Funding

Ross Mayfield of Socialtext fame has a “dark side of venture capital” post that is worth reading, especially if you’re in the legal/accounting/consulting side of the business. Many such folks hang around reading VentureWire and the like looking for leads. If someone scores a venture financing then ka-boom, their phone begins ringing like the first hour of the Jerry Lewis telethon. It is, in a word, irritating.
Before people begin emailing me to tell me that they have to make a living too, I’ll concede that upfront. You do. But recognize that calling someone immediately after they raise some venture money is not smart. First, they are being carpet-bombed by people like you, so your nicely-honed pitch is likely to miss. Second, they almost certainly already have accounting/legal/consulting support: That is how they got the financing.
Rather than following the parade, service providers need to learn how to lead it. Find interesting companies, take risks, and pursue stuff before it hits the radar. Following along afterwards with aggressive calling practices just turns potential customers off.

Related posts:

  1. Brad, Bankers, and the Perils of Italics
  2. Pension-Funding Problems
  3. The Perils of Recycling Phone Numbers