

Ask YC: What to ask to a VC when you're a bootstrapper ? - nraynaud

I will be introduced to a VC on monday (by my previous CEO), but I'm in a very early stage (no demo yet) and I don't want any money (well, apart from donations). <p>How, can I make profit of this kind of meetings ? I understand that networking is important in my position, but I don't know what I can give to this guy nor what he can bring me.
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gigamon
A "bootstrapper" is not a permanent state of mind.

Basically all entrepreneurs of the past were bootstrapping entrepreneurs in
the sense that they view outside investment (whether from VC's or angels as
"working" capital and not R&D money). In other words, a bootstrapping
entrepreneur is someone who is determined to take their venture to a point
when ALL they need is money.

So in that sense, you always need to speak (aka pitch) to potential investors
(these are your future partners who would provide capital and only capital
when you need it and only when you need it). One way to understand this is
that as an entrepreneurs, we are not here to build products or features, but
we are here to build companies (which is our ultimate product).

You should embrace every opportunity to speak with a VC, to practice, to
articulate your dream and to understand who they are and what they do. VC's
are simple people with very simple objective (to make money). And sometimes,
that simplicity is all entrepreneurs really need.

I have written an article on my experience with VC's and my own perspective on
who VC's are and they are not. I hope this helps.

How to Turn Your VC into Your Worst Enemy?

<http://www.lovemytool.com/blog/2007/10/vc-worst-enemy.html>

Good luck with the meeting and good luck on your learning.

\--Denny--

Denny K Miu

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dpn
Pitch your idea, the more you practice pitching, the better.

My current investors get me out in front of everyone they can, I suspect it's
because they think I need practice.

Get their contact, pitch to them, and see what they think. These early
discussions are a good sounding board, and will also get someone else thinking
about your idea, not matter how briefly.

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webwright
No demo and you don't want money... I'd say that your only missions is to get
them excited about what you're building, ask for their sage advise, and get
permission to contact them about the app once you have something to show (a
biz plan, a demo, etc).

But focus on the advice. Ask questions like "Do you think we're focusing on
the right problem?", "What do you think we should do differently?", "Should we
get a business plan together or focus on our demo?", etc.

You want to vet this individual for their brain, their interest, and their
wallet. :-)

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brlewis
Grab as much free advice as you can. Present the issues facing your venture
and see if the VC can say anything about how to tackle them. Then go back and
carefully evaluate their advice, because ultimately you make the decisions.
The best information you'll get is how smart these VCs are and whether you
want to work with them in the future.

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thomasptacek
Advice? I bet you $10 she will not say ``No''. You'll even get ``buying
signals''. If I were you, and I wanted to learn more than I wanted to sell?
Ask ``why would you want to invest in my company'' and pressure her for a real
answer.

Sales is mostly about moving a process forward, so your only goal is to get to
the next step.

If the VC isn't a full partner, your next step is to get to a meeting with a
partner.

If the VC is a full partner, you want to ask, ``what's the process you use to
decide on investments''. Usually, there's a dance of customer-validation
meetings that precedes a ``partner meeting'', the outcome of which is a term
sheet. So you want to chart out the state machine that terminates in a partner
meeting, and then transit from state 0 towards that meeting.

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edw519
First of all, remember that this is an INTRODUCTION, no more, no less. So take
the following words out of your vocabulary right now: don't, but, money,
donations, profit, give, bring. You are there to get to know each other,
that's all. Be prepared to speak openly, honestly, and from your heart when
asked. And be prepared to LISTEN. These are the best things you can do for
him.

I would definitely not push anything in a first meeting, but I would be
prepared to respond to any question. You don't mention whether this
introduction is over a meal - all the more reason to relax, take it easy, and
enjoy.

I would definitely spend some time up front preparing. Mentally have a list of
any possible question and your response. Also, learn something about the VC.
You already have a mutual contact (your previous CEO), so you should have
something interesting to talk about besides your project. Remember, he is
interested in YOU as much as your work. Give him a chance to get to know you.

Most of all, do or say something that will make him remember you, so whenever
you follow up, he'll immediately know who you are. A light discussion about
the local football team or an activity one of his children is involved in may
work. A hand written thank you note is always nice (Why doesn't anyone do this
much any more?) But beware: you MUST be sincere in whatever you say or do or
you'll look like a jerk and do more harm than good.

Most of all, have a good time! And post back to let us know how it went. I,
for one, will be looking for your post.

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thomasptacek
You're not a bootstrapper. You're trying to get VC. You're an aspiring VC-
funded startup.

