Comments on: After the no

By: sethlevine

sethlevine — Mon, 23 Jun 2008 10:41:32 +0000

thanks for the kind words, dawn. you're right about the importance of a personal relationship/connection. we're all humans and can't help but react as such (as we should). there's context do everything we (meaning humans, not just venture capitalists) do and those that recognize that are certainly ahead of the game.

By: Dawn

Dawn — Sun, 22 Jun 2008 15:45:55 +0000

As someone who got a quick no from Seth about a year ago, I have to report that I HAVE stayed in touch with Seth and he has been VERY helpful to me! I deeply appreciate it. Most VCs would rather spit in your face than continue a dialogue after they know they don't want you. Seth's openness to me has been extremely refreshing and I greatly respect him for it!

If you kiss Seth's offer off, you're crazy.

And, Jonathan, I for one think your attitude is self defeating, not to mention disrespectful. "Something concrete to gain"??? Being so calculating with human relationships isn't going to get you anywhere, IMO. We're all human beings first, VC/entrepreneurs second. When somebody treats you as a thing to use, you can sense it immediately. If you come off as cold and calculating as you seem here, they'll cross YOU off THEIR list, and you will no longer have to worry about whether your precious time is being wasted by taking them up on their offer.

Which reminds me. There have been many VCs who treated me in that "cold and calculating" way with "offers" like: "Ping me when you launch." Will I? No.

So I guess whether or not to stay in touch really just depends on if you've made a genuine human connection or not. If you don't feel it, don't offer or don't accept the offer. Otherwise, you'd be stupid not to do both.

By: Scott

Scott — Fri, 20 Jun 2008 12:32:16 +0000

Hi Seth,

When screening potential ventures, what type of criteria do you use? Is there a specific model that you have built into a spreadsheet? A checklist? Or do you operate by gut-feel, reviewing the business plan, then having a "pow-wow?"

Thanks for the insight,

Scott
Newport Venture Group
http://newportventuregroup.blogspot.com/

By: Chase Barfield

Chase Barfield — Fri, 20 Jun 2008 09:50:17 +0000

Mr. Levine – Following Mr. Kern's lead, I am would like to update you on one of my companies – NorthStar Gloabl, Inc. We are very excited at this point. NorthStar Global, Inc. is entering the patent process for a innovative device we have developed in the tech and storage sector. We have also developed a business solution process that may be patent worthy as well (the attorney is researching this one). I subscribe to your blog and would love to keep you informed of our progress. I will definitely add your email address to our “Friends of the Company” list.

By: sethlevine

sethlevine — Fri, 20 Jun 2008 09:36:59 +0000

true. there's clearly a bias by many people to only deal with that's immediately in front of them in many circumstances, not just the one i describe. i'd have the same reaction in any case – its not hard to do, in this case can be aggregated across a large number of people (i.e., the effort to stay in touch with one person in the way i described is essentially the same as the effort required to stay in touch with many) and the failure to do so reflects a lack of forethought. IMHO

By: Derek Scruggs

Derek Scruggs — Fri, 20 Jun 2008 09:04:25 +0000

People don't follow up for the same reason they suck at email management or updating their company blog. It's just another task they'll get to “someday.” Most people suck at most things, so the skill set known as “follow up with the investor who said 'no'” is probably on the same bell curve as “follow up with the customer who said 'maybe next year.'”

Not excusing, just trying to give it some context…

By: sethlevine

sethlevine — Thu, 19 Jun 2008 21:03:53 +0000

fair enough, jonathan. however with extremely low overhead of staying in touch why not? i think every company should have a 'friends of the company' email list so they can keep people up to date on their progress (i've seen many companies use these mass emails very effectively). i'm not necessarily looking for a one on one relationship – just to hear how things are going.

i'll take your comment to heart and be more specific when i want to see specific progress and may then want to invest or where i'm just curious where the company ends up.

By: Will Kern

Will Kern — Thu, 19 Jun 2008 19:19:36 +0000

Seth,
In keeping with the spirit of this post, I wanted to let you know that we (trooQ) are making great progress and are planning a free version launch of the product in the coming weeks. Thanks for the time you gave me and the advice you provided. If you would like to hear specifics as to where we are, just let me know.

Thanks again!
Will

By: Jonathan

Jonathan — Thu, 19 Jun 2008 18:51:11 +0000

I've never met you, so I can't say exactly how hearing your “no but you'd like to hear your progress” sounds. However, I would be more inclined to give you updates if you gave me specific reasons to communicate further. I don't think this is leading me on if you are sincere. Tell me directly that you may consider an investment if you saw such-and-such, or tell me that you might be able to help me. In other words, tell me that you feel there is value in the time I'm going to devote in keeping you updated.

While the amount of time is small, small things add up, and if I'm deciding where my opportunities are, I'll spend time if I believe I have something concrete to gain (not just funding, but good feeling, good word-of-mouth, assistance, etc.). So throw us a bone!