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Aug 3
No Formula for VC Success
The Texas Startup Blog has some sobering tips for entrepreneurs seeking seed capital.

Frank Demmler writes that entrepreneurs sometimes fall into the trap of thinking that there is a 10-step process that will magically guarantee investment capital.

I really shouldn’t be telling you this, but there is actually a set of criteria that, if met, will guarantee a successful Series A round.
  • You are your parents’ favorite child and your last name is Gates or Buffett
  • You have bootstrapped your company to $50 million in annual sales  with 60% margins and/or you have actually captured that elusive 3% of the Chinese population as customers
  • You have recruited Jim Clark, John Doerr, Michael Moritz, and LarrySergei to your management team

Meet this criteria, and Frank's theory goes out the window.  You are guaranteed your multi-million-dollar A round.

If you haven't been able to do these things, Frank's post may be worth reading.

What other scenarios would guarantee a VC investment?  (Tounge in cheek, of course ...)


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Could be a CEO Fight Club member?

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« Angel Investor Tax Incentives Could be Very Bad | Main | The Angel Journal »

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