Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

“Yes” means “no”: The language of VCs

jacobbartlett.substack.com

Post reply on HN
Print view View original

1–10 of 217 posts

Re: “Yes” means “no”: The language of VCs

#3

Post by lisper »

It's not so much that "yes" means "no" but that VC's never actually say no, and it's easy to understand why. Whether or not they actually fund you, they always want you to think that they are going to fund you because that way they hedge their bets in two ways. First, if they learn new information (like if you suddenly start to get traction) they can change their minds without losing face. Second, and more importantly, as long as the answer is actually no you are potential competition for some other company that is actually in their portfolio, so they want you to think that you have a shot with them so you won't pursue other opportunities as aggressively.

The only thing that actually means "yes" in VC land is when the check clears.

Re: “Yes” means “no”: The language of VCs

#4

Post by ldjkfkdsjnv »

Rubrik for early stage:

1. No product:

   -> went to stanford or harvard -> funded (no questions asked)

   -> held director level at faang -> funded

   -> everyone else -> probably not funded
2. Have product:

   -> not prestigious -> need real ARR with good growth

   -> prestigious -> need a product

   -> everyone else -> not funded

Re: “Yes” means “no”: The language of VCs

#5

Post by aussieguy1234 »

"Everyone wants investment from venture capitalists".

I have a bootstrapped side project, Tunnelmole, turning a small profit and growing at a slow and steady rate on its own. I'm the engineer so I only really pay hosting costs, which are covered by the revenue, although in the early days I had to cover this.

While venture capital is an option, if it continues to grow, it's entirely possible the venture capitalists may not be needed.

Re: “Yes” means “no”: The language of VCs

#6

Post by Sytten »

"Everyone wants investment from venture capitalists."

Am I the only one not living in this bubble. I cofounded a boostrap business. Having cash to hire and not have to work two jobs would sure be nice, but if I am raising it would not be to be on Forbes list, it would be to build an actual business. The vanity of those people sometimes.

Re: “Yes” means “no”: The language of VCs

#7

Post by djbusby »

It's a good retrospective. It's clear the author learned, and improved. I didn't find anything new, it's got commentary on three common failure-to-raise modes.

One thing I noticed about the tale was lots of focus on the product and MVP things. I think more efforts on Customer Development before MVP can provide a lot of traction signal to VC.

Re: “Yes” means “no”: The language of VCs

#8

Post by zomglings »

ldjkfkdsjnv wrote: post #4

Rubrik for early stage: 1. No product: -> went to stanford or harvard -> funded (no questions asked) -> held director level at faang -> funded -> everyone else -> probably not funded 2. Have product: -> not prestigious -> need real ARR with good growth -> prestigious -> need a product -> everyone else -> not funded

This is almost accurate. I would add one more thing:

    -> Have previous success (as founder or as employee) in same space -> funded

Re: “Yes” means “no”: The language of VCs

#9

Post by ldjkfkdsjnv »

zomglings wrote: post #8
ldjkfkdsjnv wrote: post #4

Rubrik for early stage: 1. No product: -> went to stanford or harvard -> funded (no questions asked) -> held director level at faang -> funded -> everyone else -> probably not funded 2. Have product: -> not prestigious -> need real ARR with good growth -> prestigious -> need a product -> everyone else -> not funded

This is almost accurate. I would add one more thing: -> Have previous success (as founder or as employee) in same space -> funded

Yeah i was more so thinking of first time founders. Second time founder is a different thing, though I dont think early employees ("founding engineers") get much respect.

Re: “Yes” means “no”: The language of VCs

#10

Post by djbusby »

aussieguy1234 wrote: post #5

"Everyone wants investment from venture capitalists". I have a bootstrapped side project, Tunnelmole, turning a small profit and growing at a slow and steady rate on its own. I'm the engineer so I only really pay hosting costs, which are covered by the revenue, although in the early days I had to cover this. While venture capital is an option, if it continues to grow, it's entirely possible the venture capitalists ma…

The longer you go w/o raising money the better your position can be.
Post reply on HN