The Abstract Truth

Bad VC JuJu. Or Why we need TheFunded.com

Posted by rbpasker on August 14, 2007

A friend of mine, let’s call him “Bill,” whose company I have been advising informally, is building a new website which has not yet launched. He and I and a bunch of friends went to the recent NY Tech Meetup. A guy approached us, introduced himself as a VC, and asked what we were working on. It was a good opportunity for me to listen to my friend pitch, so I listened as he explained what they’re doing. The VC listened intently, and asked a bunch of smart questions.

Bill’s company is also thinking about raising some cash, but he didn’t follow the “ABC rule”: always be closing, and try to get the VC’s contact info or a meeting. Bill and I talked about it afterwards, and I told him I would try to hook him up. When I ran into the VC again, I approached him about meeting Bill and company, but he said he wanted something in writing first so he could go over it with his partners, and then would contact us if there was any interest.

The next day, a company that competes directly will Bill’s company announced a multi-million dollar investment with the very same VC we met .

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One Response to “Bad VC JuJu. Or Why we need TheFunded.com”

  1. I signed up for that thing, and I definitely have a few stories of VCs screwing my friends who are entrepreneurs in one way or another, but I’d be really nervous about putting that stuff up publicly. OTOH, there is definitely a need for it since there are rotten apples in every bunch. I feel like the top tier guys don’t do this stuff, and so they get access to the very best deals. If you’re a bad actor, you don’t have as much access to the really good deals, and so to a certain degree what goes around, comes around. Anyway, to me, TheFunded needs to build a strong enough brand that people trust it.

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