Should we meet pre-traction?Leave a Comment
This post was originally posted on Venturing from Israel, Micha Porat’s blog.
It is relatively often that I talk to entrepreneurs who tell me “it is too early to meet”, “we’re not ready” or “the product is not mature enough to meet”. Sometimes they’re right. Actually, they’re always right, because it’s their prerogative to choose if and when to meet who and where. But, I feel that in many cases, this statement is derived by a misunderstanding of the day to day business of venture capitalists, and where we feel we can add value to companies pre-investment. So I am writing this post to help clarify how I see my role and why I think it is never too early to hold a first meeting.
As a venture capitalist, my purpose in life is to invest & help build great companies that will generate outstanding returns to our fund’s Limited Partners. That role can be split into pre and post investment. Let’s focus on the pre-investment, which I would estimate accounts for anywhere from 20% to 50% of a typical venture capitalists’ time. Pre-investment is comprised of networking, sourcing, due diligence, and deal closing. So why is it never too early to appear on a venture capitalists’ sourcing radar? Because there is value in brainstorming and leveraging the venture capitalist’s network, while the downside of appearing ‘unprepared’ can be mitigated easily.