I think the holy grail of deal making for VCs is being able to put your money behind the "Big Hitter" CEOs:
These are CEOs that have done it before big time (Multi hundred Million, or even Billion $ exits), and are still hungry to do it again - this time even bigger...
It just so happens that this week I had the chance to meet with two such CEOs. The experience was very different from anything most VCs experience on a day to day basis. To be more precise... It was almost the exact opposite:
- These CEOs can pick and choose whomever they want to work with (rather then strive to get a meeting)
- They set the agenda, and decide at what pace things move
- They conduct much more due diligence on you than you do on them
- They set the terms of the deal (and can stick to them)
- ...And they collect the term sheets (rather than wait to get them)
After spending some time with them, it becomes very clear why this happens - These guys are incredibly impressive, and there is no doubt they will build very big companies (or at least burn a lot of money trying...). One thing's for sure - they will not stop half way. And this is exactly what us VCs look for.
There is a lot to learn when meeting such people... but to me one thing stood out, which any entrepreneur should implement. It seems that for these people, the most important factor in the funding is:
The decision on who will be their partner
The person that will sit together with them around the board table and walk with them along the path to success... At the end of the day, money is a commodity... But selecting your partner is a decision that no entrepreneur can take lightly, and in that respect - any entrepreneur should see him/herself as the Billion $ Promise...
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