

Three things you should never tell a VC when fundraising - swombat
http://www.freddestin.com/blog/2009/11/three-things-you-should-never-tell-a-vc-when-fundraising.html

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pg
This is a bit extreme. You're going to have to tell them your cap table and
how much money you have before you close a deal. So it can't be correct advice
_never_ to tell VCs that. The question is when.

~~~
swombat
Fred replied on Twitter:

<http://twitter.com/fdestin/status/6086581017>

 _@swombat yes of course there is a time to disclose, that's implicit.
information is valuable, use it wisely._

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fdestin
Catchy title, lazy title. Text conveys meaning more carefully: be very
selective in your disclosures.

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richardburton
I was surprise to read that you shouldn't tell VCs about "Other investors you
are talking to". Although I've never approached VCs, I can imagine that the
quotation below is pretty close to reality:

 _"(VCs are like high school girls: they're acutely aware of their position in
the VC pecking order, and their interest in a company is a function of the
interest other VCs show in it.)"_

<http://www.paulgraham.com/startupfunding.html>

If you let them know that lots of hot, cheerleader-VCs think you're kind of
cute then that has got to help your chances of picking up.

~~~
zaidf

      If you let them know that lots of hot, cheerleader-VCs think you're kind of cute
    

Usually if that is the case, _you_ shouldn't have to tell them. They'll know.
That aside, I thought the article was aimed at the other 90% of startups that
don't have VCs knocking their doors. In those situations, I think it helps to
be careful about what information you give out.

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jeremymcanally
Maybe I'm more upfront or something than most people, but tip #1 seems kind of
dishonest. Why would you tell someone you're trying to build a trust
relationship with that everything is just fine when it's really falling apart?

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gstar
I have a feeling this is one of the key things that differ between greater
Europe and Silicon Valley.

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zaidf
I think as the current cycle in Valley gets more competitive, you'll see fewer
people being super open. Not just VCs but everyone, especially entrepreneurs.

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gstar
Most likely yes - I still think it would take a fairly sizeable contraction in
openness in Silicon Valley to be as closed as Europe, though.

