Posted by fnazeeri on 2009-01-04
Tags: Venture Business Crisis
I just got off the phone with a friend who is founder/CEO of an early stage medical device company. His company is doing well and recently received a couple of term sheets for his first institutional round. As he was going through the process of negotiating with the potential investors, he said they were trying to set his expectations low. He told me a story about how one investor recounted tales of startups making mass layoffs, cutting back everywhere and generally dire conditions (basically sending the message that he should be happy to be getting an offer).
So my friend responded, "Wow, that sounds terrible. This must be really affecting you badly...how many people have you had to layoff here""
The VC stared at him with a bewildered look.
Read more here.PRIVATE: Members Only (2185 Characters)