Event Review: VC Task Force’s VC Connect - Small Fund SIG 26 Jul 2007
Managed to make a different organization’s event this week. The VC Task Force sponsored the VC Connect - Small Fund SIG. From the website: VC Connect: A Q&A roundtable between entrepreneurs and investors from smaller or newer VC funds. Speaking at the round table were Mark Platshon, Xseed Capital; John Steuart, Claremont Creek Ventures; Carl Showalter (substituting for the schedule Dan Avida), Opus Capital; and Larry Kubal, Labrador Ventures. Moderating the panel was Bill Reichart, of Garage Technology Ventures.
The event took place at the offices of Wilson Sonsini Goodrich and Rosati, in Palo Alto. The networking before the event featured some of the best hors d’oeuvres at any event. They weren’t what I’d call excellent food, but a far cry from the stale munchies I’ve had elsewhere. I had an interesting introduction conversation with a number of folks. When I described my project as creating a replacement for Microsoft Exchange (I know - I haven’t talked about that before…), I got a resounding “yes, about time” response from all of the folks.
Unfortunately, one of the people was a little to enthusiastic, and engaged me in a conversation. At first it was interesting, but then turned into the classic Valley Anti-Microsoft pitch - why wasn’t I going to do open source? What about iPhone? What about Google? No offense to this person, but you didn’t allow me to meet other folks, and it was hard to extract myself from your persistent questioning, which bordered on pestering. I guess it’s something I’m going to have to learn how to handle better.
During the actual round table discussion, there were some useful nuggets that emerged.
- Quantifying the pain point is not worthwhile, as long as it’s big
- Look for signposts that predict rapid growth while being below the radar
- Don’t buy market research reports - it’s just not worth it
- Packaging your pitch - nothing substitutes for research, analysis, carefully selecting users and customers for reference.
- Find a market sub-segment where you can dominate with greater than 40% of the market share
- First mover advantage doesn’t exists
- Good founders do due-dilligence on their VCs
- Team coachability, domain expertise, chemistry, self awareness, why does the team see things that others can’t, are all factors
In general, it was another good introductory session, that allowed me to meet a few more VCs. However, this was a little more costly than the SVASE events - $72 for non-members. I’m still debating internally whether or not to join VC Task Force. On the positive side, it does provide another networking point with the VCs. On the negative side, entrepreneur membership does run $300/year. Is this a good way to spend our company funds?