I have nothing against VCs. They get a bad rep.
In fact, the few times we’ve exchanged thoughts they have always had interesting things to say about our company, much-appreciated and valuable feedback. That’s not really sucking up since lord knows I’ve said enough critical things on this blog as well…
VCs are not good or bad, they just are… a necessary evil. Everyone that knows me is well aware that my goal is to build Mojo Supreme with no VC or outside financing, but having turned down a buyout offer last week, I sort of realize that given my ambition and where I want to take the company in 2007 and beyond, raising VC is a matter of when, and not if.
Anyway… reading this and this about the similarities between VCs and the mafia, I thought back to something from a screenplay I wrote a few years ago, when I was a younger, not-so-wise writer; instead of the mature and oh-so-wise entrepreneur I am today…
MICHAEL
Talking valuation with a VC is like talking money with a hooker. You know you have to at some point, but you prefer not to.
MARCEL
Come again.
MICHAEL
The difference is that with a hooker, you have to ask before the act because otherwise, you get in trouble with the pimp. But you have to ask because she will sleep with you anyway. It is your prerogative to turn her down after she tells you the price.
With VCs, the problem is that it is their prerogative to turn you down 9 times out of 10. If we ask them to talk valuation, we turn them off. Get it, we’re the whores… so let them bring this up.
Of course, we’re not really whores; the difference is that we don’t have any pimps to defend us, so we have even less leverage. By not talking valuation, you turn the table and gain some value, they have to bring it up, so in order not to offend us, they will probably offer us more… ideally anyway!
That’s from Fiduciary Duty, part two of a three-parter I am working on. Part 1 is White Lie. Part 3 has yet to be penned. Yeah, I know: too much time on my hands.
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February 28th, 2007 at 10:40 am
Insanely good, ROTFLOL….
Here’s something fresh from the oven
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