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Both Things Can Be True: Bias and Bad Fundraising Advice

This is going to be BIG.

The startup ecosystem is a terrific manufacturer of bad fundraising advice. Or that venture capital is a meritocracy? This doesn’t take into consideration, however, that venture capital is a financial product—a product that works for some people and doesn’t work for others. What are the characteristics of this product?

advice 429
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Advice from an entrepreneurship expert, with Professor Michael Goldberg

Young Leaders of the Americas Initiative

Michael answered questions from network members requesting advice for their entrepreneurial endeavors. What advice would you give to entrepreneurs and professionals looking to finance their business? Angel investors or venture capitalists will require that entrepreneurs sell shares (equity) of their companies for investment.

advice 240
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My Number One Advice for Startups or VCs: Conviction > Consensus

Both Sides of the Table

It spoke to me because it so resonates with my nearly daily advice to entrepreneurs and VCs alike. I went as far as to call it the best Tweet of 2015 so far because it encapsulated my advice so succinctly. I am often asked how we make decisions on investments at Upfront Ventures. He took two words where I take 1,000!

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The Bad Advice Diverse Founders are Given Around Fundraising

This is going to be BIG.

First off, the vast majority of venture dollars goes to white men. Here's what the Brooklyn Bridge Ventures site says: "Brooklyn Bridge Ventures manages $23 million across two funds, leading or co-leading investments of around $350,000 in New York City companies that have yet to raise $750,000 in prior rounds. That is a fact.

advice 418
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Here Are the Details About Upfront Ventures’ Newest EIR – @Chamillionaire

Both Sides of the Table

And after one meeting they started asking for his advice about marketing, customer engagement, product design, monetization – whatever. It always started the same way – a founder would ask for an intro because they figured he could help with promotion.

ventures 420
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Venture Capital is About Human Capital

Both Sides of the Table

The number one advice I give is “stop trying to be too smart”. Most VCs did well academically and had enough career success that a venture firm was willing to give them an investment role or they were able to raise their own fund. Fundamentally venture capital is about human capital. Venture Capital is a people business.

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The Quality You Never Hear Pitched When People Want in to Venture Capital

This is going to be BIG.

So I asked a few founders that I've worked with and they mentioned a word that struck me--because I've never heard any of the hordes of people in my inbox asking for internships, VC job recommendations and advice, etc. I think of venture capital as a service business. mention about themselves. Generosity.