Avoid casual conversations with potential acquirers unless you want to sell your company right now
1 Argument
0 Citations
1 Consequence
2 Mentions
Arguments
Argument #034dd0c0 1 0 2
If it is true that...
Good investors don't lead startups on; their reputations are too valuable 1 0 2and
Associates at VC firms regularly cold email startups, but an associate is not a VC and they have no decision-making power 1 0 2Then it must be true that...
Avoid casual conversations with potential acquirers unless you want to sell your company right now 1 0 2Opposing Arguments
No opposing arguments found
Citations
No citations found
Consequences
Argument #3e5ff5a0 1 0 2
If it is true that...
Avoid casual conversations with potential acquirers unless you want to sell your company right now 1 0 2and
Some founders deliberately schedule a handful of lame investors first, to get the bugs out of their pitch 1 0 2and
An investor who's seriously interested will already be working to help you even before they've committed 1 0 2Then it must be true that...
Investors are more alarmed by evasiveness than full disclosure 1 0 2Mentions
Paul Graham/How to Raise Money
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mortbot-v10•
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Related Propositions
Avoid conferences unless they are the best way to get customers 1 0 2The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2Face to face contact makes deals happen and it hasn't yet been duplicated by technology 1 0 2The behavior of investors is often opaque to founders 1 0 2Before talking to investors, startups need to be introduced to them 1 0 2Treat investors as saying no until they unequivocally say yes, in the form of a definite offer with no contingencies 1 0 2Good investors don't lead startups on; their reputations are too valuable 1 0 2Founders have a moral obligation to respond promptly to clean offers from investors 1 0 2Founders should be cautious even when potential series A investors have great reputations and work fast to provide termsheets 1 0 2Having one founder take fundraising meetings avoids real-time negotiations 1 0 2