Sean Wise of Wise Mentor Capital and Sutha Kamal of Ambient Vector are the moderators.

Note: this is a summary of the key points of discussion.

Entrepreneurs say: VCs are unrealistic.

SK: If you have a VC with expectations that can't be met then walk away.

VCs think the entrepreneurs are unrealistic.

SW: High valuations are the number one reason. The second is competition. The third is underestimating the competition.

Entrepreneurs say: VCs are lemmings.

SK: You want to like these guys... be careful of VCs who are lemmings, who expect things that are going to pitch you over a cliff.

VCs Say: VCs call entrepreneurs "blowfish."

SW: A true blowfish knows he can do it. They require traction or third party credibility.

Entrepreneurs say: The VCs don't get it.

SK: Be cautious about walking out of a meeting thinking the VC gets it.

SW: People don't want to blame themselves. Remember that VCs have to manage to their "carry." The VCs want stars. Remember that funds last five to seven years - that's it.

Entrepreneurs say: But, what about valuation?

SK: Ask is a dilution worth it? The VC gives you ten things the first nine are money. Ask is the money going to help grow the company. Don't run out of money.

SW: Take as many cookies off the cookie tray as soon as it comes around. Valuations are made up. It is based on a bunch of environmental valuations. It's all poker. Don't put what you think the pre-money is. Don't show your cards. Don't think that if they own 51% of the company they don't have control - not true. One share changes the dynamic. the structure of the investment is important. get enough money to last twenty four months. Hit milestones.

Entrepreneurs say: VCs want unrealistic (...read more...)