January 22, 2013
When I am a VC overlord:
- I will not fund any entrepreneur who uses the word “disruptive”, unless she has actually read at least one book by Clayton Christensen.
- I will not fund any entrepreneur who mentions “market projections” in other than ironic terms. Nobody who talks of market projections with a straight face should be trusted.
- I will not fund any software entrepreneur who is unfamiliar with “The Mythical Man-Month”.
- I will not fund any software whose primary feature is that it is implemented in the “cloud” or via “SaaS”. A me-too product on a different platform is still a me-too product.
- I will not fund any pitch that emphasizes the word “elastic”. Elastic is an important feature of underwear and pajamas, but even in those domains it does not provide differentiation.
- I will hire a 16 year old intern of moderately above-average intelligence. I will not sign or propose any contract that intern finds difficult to understand.
- I will hire a second intern of moderately below-average intelligence. I will not fund any product whose documentation that intern finds difficult to understand. Exceptions may be made for products sold to orienteering athletes, crossword puzzle solvers, or engineers.
- When a board on which I sit approves revenue targets for the year, I will further stipulate that the year-ending sales pipeline must comprise more than a Chinese hair salon, an Italian pushcart vendor, the CEO’s brother-in-law and a bankrupt bait shop in Nome.
- I will only hire a CEO who can explain the technology at his previous company. A CEO who doesn’t know what his products do can’t sell or market them either.
- I will only hire a CEO who can also walk me through a sales cycle at her previous company. A CEO who doesn’t know how a customer buys may well have trouble producing revenue.
- I will support any plan that I agree is good for a company I have invested in, nor matter how modest or how bold. I will participate in any funding round that I think is profitable for my limited partners.
- I will remember that a board of directors has a fiduciary responsibility to all shareholders, and not just to the preferred ones.
Please offer your suggestions below. An associate will get back to you with our decision.