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“Yes” means “no”: The language of VCs

jacobbartlett.substack.com

41–50 of 217 posts

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

#41
When you say yes, they value their time/energy like money, it gets you to shut up so they can move on, and delay the explanation later on why they “reconsidered”, it’s passed to the assistant for the reply.

Now when they don’t say yes/no abruptly and just asks more questions, they are interested and that’s a better gauge

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

#42

Maybe it's my business major background and my skepticism of all these tech companies that have no reasonable business model to make $'s, but unless there is an obvious need for investment like buying a large amount of real estate or machinery, why would you need VC money to build an app after you've already spent several months doing it? It should run on it's own and not need investor money. You shouldn't be focused…

> It's not that difficult.

Who is going to tell him/her?

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

#43
Oh, I’ve heard many No’s. So many No’s that I will never, ever try to work with VC’s ever again. Fuck them. There’s a very high probability that you won’t need them either. In my case, I just kept going. If you have a good product then you will succeed. With VCs or not!

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

#44

Maybe it's my business major background and my skepticism of all these tech companies that have no reasonable business model to make $'s, but unless there is an obvious need for investment like buying a large amount of real estate or machinery, why would you need VC money to build an app after you've already spent several months doing it? It should run on it's own and not need investor money. You shouldn't be focused…

The goal of most Silicon Valley founders isn't profit, but growth. Quickly increase users, quickly increase revenue, quickly increase headcount. Quickly become a large company which can be sold for billions.

Or, never reach sustainability and eventually go bankrupt - this outcome is actually still good for the founders since they probably walk away with millions in their pockets (from paying themselves seven-figure salaries).

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

#45

Oh, I’ve heard many No’s. So many No’s that I will never, ever try to work with VC’s ever again. Fuck them. There’s a very high probability that you won’t need them either. In my case, I just kept going. If you have a good product then you will succeed. With VCs or not!

I kinda feel for the people who are desparate to be the big cheese rather than have their own thing that's sustainable

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

#46

Maybe it's my business major background and my skepticism of all these tech companies that have no reasonable business model to make $'s, but unless there is an obvious need for investment like buying a large amount of real estate or machinery, why would you need VC money to build an app after you've already spent several months doing it? It should run on it's own and not need investor money. You shouldn't be focused…

What's confusing about how having more money might let you hire more people to build more things or build things faster?

If something is an obvious winner - why handicap it by limiting investment to what it can make on its own?

What if it relies on network effects, or economies of scale?

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

#47

Maybe it's my business major background and my skepticism of all these tech companies that have no reasonable business model to make $'s, but unless there is an obvious need for investment like buying a large amount of real estate or machinery, why would you need VC money to build an app after you've already spent several months doing it? It should run on it's own and not need investor money. You shouldn't be focused…

A lot of venture backed companies aren't just building an "app". Spend some time looking through the portfolios of major VC firms, especially in life sciences and medical devices.

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

#48

Maybe it's my business major background and my skepticism of all these tech companies that have no reasonable business model to make $'s, but unless there is an obvious need for investment like buying a large amount of real estate or machinery, why would you need VC money to build an app after you've already spent several months doing it? It should run on it's own and not need investor money. You shouldn't be focused…

One reason to seek funding early would be if you are in a competitive space and want to grow faster than your competitors.

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

#50
They miss my favorite: "Yes, we'll invest we just don't want to be 'lead'."

That is code for: "You aren't going to find anyone who shares your idea of what your valuation should be so we are safe telling you we'll invest if you find a 'lead investor' because that person doesn't exist."

It gets funny/twisted when you do find a lead and go back and now there is some other goal post that is keeping them out of "this round."

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