TheFunded.com Open Letter
Posted by Anonymous on 2007-07-27
A number of posts have come up about how venture funds are sharing pitch materials, business plans, and even financials with the competition. This may seem crazy, except for the fact that, as a venture funded CEO, I get these materials from venture capitalists, too. I actually know many of my competitor's financials as a result, and I want to go on the record and say that this needs to stop.
I am not even sure if it is OK to give me a high-level verbal synopsis of a competitor's financials, which I have also received on multiple occasions. I do think it is OK to provide me with high-level insights on the market that is derived from seeing multiple business plans.
It's like rubber necking. You know you shouldn't look, but when a plan hits your inbox, you open it, see what it is, and then you can't turn away. I commit to deleting all such emails in the future (and I have been for some time), but, more importantly, the venture industry needs to stop this practice. Members, if you agree with me, agree with this post - both as an entrepreneur that receives the materials and as an entrepreneur that has probably had their materials shared.