Posted by Anonymous on 2010-06-30
Out of the blue, we were contacted by LSVP since they had an interest in learning about us, making us a part of their deal flow and investing in us. They gave the impression of a serious and fast moving VC, and after substantial discussions, they simultaneously asked us to come and present to the "Team," as well as set up calls with our customers.
Net-net, they learned about the market from us and used the face to face to get introduced to our customers. After all that, they went silent for 6 weeks! No emails, no phone call returns, nothing. Eventually when I pushed them for an answer through one of the LPs, we got back some lame feedback saying we were "too early," something that they would have known after the first 5 minutes when we do our elevator pitch if it were true.
1. They will "cold call" you from Press Releases.
2. They will use you to gain market knowledge.
3. They will try to get connected to your customers.
BUT know that
4. They will always be late to meetings.
5. They will not be prepared beyond the initial meetings where they bait you into the process,
6. They are not serious investors.
6. They do not have a DD process that is transparent.
7. They do not have any respect for entrepreneurs.