Ask HN: 4 of 24 VCs showed interested -- what now?

4 points by fluorid 14 years ago | 1 comment

Background info: we launched few months ago and we're growing like hell traffic-wise, team is great and experienced, product is innovative and has a strong fan base. Sent 24 mails to VCs (most were cold) and 4 replied. Each of the 4 replied instantly like one day later. Each thinks about next steps, is still checking our product or wants to meet us soon. They have one thing in common: after the initial reaction they seem to let time lapse away until the next step. I think they all act by the principle of late-decision-making.

They are smarter and more trained than me regarding such deal processes. So, how can we push them or initiate an authentic "bidding war"?

zbruhnke 14 years ago |

Just my $.02 but good luck initiating a bidding war when you are cold-calling VC's ... they see this as a company who has a "need" for money versus someone looking for a partner for growth.

My suggestion would be to keep a poker face when offered term sheets etc. no matter how tight money may be pretend you only need money to leverage more growth and not to stay afloat.

If you have a product with a quickly growing user base they should be able to see the value. You just have to sell the ability to make money with or without them. If you cannot do that you will never initiate a bidding war