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A Summary of

Why Margin Matters Now in Startupland

by
Eric Paley
Founder Collective
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Venture capitalists are sellers of capital

  • They often give off signals that are inconsistent with the real probabilities of their actually making an investment.
  • Don't get excited about meeting a VC, they're paid to listen to your pitch.
  • Being invited back is common after a great first meeting and not a strong signal.
  • Being invited to a partner meeting is forward momentum but still around half of all deals vaporize at this stage as partners lose enthusiasm.
  • Don't take closing for granted when a term sheet is offered. ~10% of deals fail at this stage and it's often the biggest disconnect between founders and VCs. Celebrate once a deal is closed, not before.
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