Tag Archives: venture capital

Stop Spending Time with People Looking for Reasons to Say No

“Um, excuse me, I … I think you forgot my bread.” “Bread, two dollars extra.” “Two dollars? But everyone in front of me got free bread.” “You want bread?” “Yes, please.” “Three dollars!” “What?” “No soup for you!” — George and the Soup Nazi, in “The Soup Nazi,” Seinfeld

I spend far too much time trying to convince people to say “yes,” especially people who are looking for reasons to say “no.” I think of myself as a pretty good salesperson, but I don’t think I have ever convinced someone to change his or her mind

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Posted on November 14, 2014 by greggottesman · 2 Comments

Do Diligence on Us

“Think of him as chewing gum. By the end of the game, I want you to know what flavor he is.” – Coach Norman Dale (Gene Hackman), Hoosiers

Entrepreneurs don’t do enough diligence on their investors.

As venture investors, we do a lot of diligence on you. We call references, both on and off your reference sheet. In our partnership discussion, we talk about your strengths and weaknesses, your character, your ability to grow the business, your idiosyncrasies, whether you will want to sell too early, your willingness to take feedback, and everything else under the sun. We are making a bet on you just

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Posted on December 9, 2012 by greggottesman · 12 Comments

The Best VC Pitch Ever

In the past 15 years at Madrona, I have heard in excess of 7,500 pitches. Some of them were great, some not so good, but not one compares to the pitch below.

In honor of TechStars Demo Day tomorrow in Seattle, I present to you . . . the Ice Cream Glove.

Posted on October 31, 2012 by GG · 2 Comments

Time Kills All Deals

On a long enough timeline, the survival rate for everyone drops to zero. –Narrator, Fight Club

No matter how compelling your product or service is, no matter how great the terms you are proposing, no matter how appealing you are as a promoter or sales person, given enough time, your deal will fall apart.

It won’t be your fault. In the last two quarters, I have heard the following from CEOs at various software startups.

“Our deal champion left the company.” “The budget shrank, so we’re off the table now.” “The buyer missed its numbers. Everything’s on hold.” “That company fell off the list because it … Continue reading →

Posted on October 23, 2012 by GG · 9 Comments