As the fundraiser for startup mVerify, I contacted over a hundred venture capital (VC)investors and then had serious discussions with several dozen. Although I came close to getting a terms sheet a few times, all the discussions ended in a brief email or call saying “pass” or “pass, let’s stay in touch.” Sometimes, I got a coherent explanation of the objections.
But before getting the brushoff, I also heard things that seemed strange, irrelevant, or just plain goofy. Context is given in parenthesis.
A recent Silicon Valley Bank study of VC funded software startups from 1996 to 2010 found that about half failed. This reminds me of Ross Perot’s comment: “I know half of the money I spend on advertizing is wasted — I just don’t know which half.” I suppose these kind of odds would make any investor picky, but quirky too?
(With apologies to Art Linkletter’s “Kids Say the Darndest Things”.)