Comments on: Investors and VCs Aren’t as Smart as You Think http://www.donloper.com/business-and-entrepreneurship/investors-and-vcs-arent-as-smart-as-you-think.html Thu, 09 Feb 2012 01:06:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: donloper http://www.donloper.com/business-and-entrepreneurship/investors-and-vcs-arent-as-smart-as-you-think.html/comment-page-1#comment-472 donloper Thu, 14 Jul 2005 20:07:23 +0000 http://72.47.194.140/uncategorized/investors-and-vcs-arent-as-smart-as-you-think#comment-472 True, many deals get passed on 50-100 times because the deal stinks, the entrepreneur is an idiot, or the idea they have is just plain bad. I would guess this is the case with the vast majority of deals that do get turned down. Certainly the good deals that involve a good idea, a good plan, a good deal, and a good management team and yet still get turned down by a VC who is actually looking for exactly that type of deal are in the minority, but it still happens a bit. True, many deals get passed on 50-100 times because the deal stinks, the entrepreneur is an idiot, or the idea they have is just plain bad. I would guess this is the case with the vast majority of deals that do get turned down. Certainly the good deals that involve a good idea, a good plan, a good deal, and a good management team and yet still get turned down by a VC who is actually looking for exactly that type of deal are in the minority, but it still happens a bit.

]]> By: Adam http://www.donloper.com/business-and-entrepreneurship/investors-and-vcs-arent-as-smart-as-you-think.html/comment-page-1#comment-471 Adam Thu, 14 Jul 2005 17:48:30 +0000 http://72.47.194.140/uncategorized/investors-and-vcs-arent-as-smart-as-you-think#comment-471 VCs at times aren't even successful businesspeople. They are often investing other people's money raised in a large fund, not their own. From that perspective they are similar to mutual fund managers, just investing in a different class of assets. You mention the fact that many deals get passed on 50-100 times before getting funded. One of the primary reasons for that is the lack of preparedness of the entrepreneur(s) and the learning they gain by the process of shopping their deal. With the right eduacation upfront most deals get funded a lot faster. VCs at times aren’t even successful businesspeople. They are often investing other people’s money raised in a large fund, not their own. From that perspective they are similar to mutual fund managers, just investing in a different class of assets.

You mention the fact that many deals get passed on 50-100 times before getting funded. One of the primary reasons for that is the lack of preparedness of the entrepreneur(s) and the learning they gain by the process of shopping their deal. With the right eduacation upfront most deals get funded a lot faster.

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