{"id":1703,"date":"2007-07-27T05:40:47","date_gmt":"2007-07-27T12:40:47","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1703"},"modified":"2007-07-27T05:40:51","modified_gmt":"2007-07-27T12:40:51","slug":"a-peek-into-the-inverted-world-of-venture-capital-business-plans-are-overrated-and-profits-perhaps-even-more-so","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1703\/a-peek-into-the-inverted-world-of-venture-capital-business-plans-are-overrated-and-profits-perhaps-even-more-so\/","title":{"rendered":"A peek into the inverted world of venture capital: “Business plans are overrated, and profits perhaps even more so”"},"content":{"rendered":"

Infections Greed:<\/a><\/p>\n

VCs are professional nit-pickers. Give them something to find fault with, and they’ll do it with abandon. I generally tell people to come to pitch meetings with less information rather than more. Sure, you’ll get pressed for more, but finesse it. Presenting a full and detailed plan is, nine times out of ten, a path to a “No” — or at least more time-consuming than having said less.<\/p>\n

Profits are a different issue. Being profitable too soon gives investors, rightly or wrongly, an idea of what the margins are on the business, as opposed to what they could be in some perfect world. As a result, it takes a mighty force for them to not start wading in with discounted present value worksheets, and the like, thus hammering your valuation and generally making funding much more complicated (and equity consuming) than if you were wildly unprofitable.<\/p><\/blockquote>\n

How could a story like this not<\/i> have a happy ending?
\n<\/p>\n

Technorati Tags: investment<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Infections Greed: VCs are professional nit-pickers. Give them something to find fault with, and they’ll do it with abandon. I generally tell people to come to pitch meetings with less information rather than more. Sure, you’ll get pressed for more, but finesse it. Presenting a full and detailed plan is, nine times out of ten, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6],"tags":[],"class_list":{"0":"post-1703","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-marketing","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":15537,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15537\/cnbc-in-the-name-of-supporting-home-prices-the-obama-administration-will-likely-put-in-place-a-system-under-which-investors-make-private-profits-while-the-taxpayers-subsidize-the-risk\/","url_meta":{"origin":1703,"position":0},"title":"CNBC: “In the name of supporting home prices, the Obama administration will likely put in place a system under which investors make private profits while the taxpayers subsidize the risk.”","author":"Greg Swann","date":"January 9, 2012","format":false,"excerpt":"Is housing the next Solyndra? Looks like it. The Obama administration is getting ready to transfer billions of dollars worth of foreclosed homes to campaign donors. If you think still more Rotarian Socialism sucks, wait until the house up the block from yours goes Section 8. Looters never tire of\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11502,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11502\/socialist-need-not-read-like-big-oil-big-expired-program-windfall-profits\/","url_meta":{"origin":1703,"position":1},"title":"Socialist need not read –> Like Big Oil –> Big Expired Program; windfall profits","author":"Robert Worthington","date":"March 8, 2010","format":false,"excerpt":"I'm greedy!\u00a0 I'm an extremist!\u00a0 I am conservative!\u00a0 I am a capitalist!\u00a0 Haha.\u00a0 I love money!\u00a0 2010 marks the years (not Karl Marx silly)\u00a0 I mean marks the calendar for the 2010 to become the listing king.\u00a0 Between website registrations, referrals, & and windfall expired letters I set out to\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3689,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3689\/the-new-real-estate-model-part-3-patrick-dunne-purcell-a-real-estate-firm\/","url_meta":{"origin":1703,"position":2},"title":"The New Real Estate Model – Part 3.2: Patrick, Dunne & Purcell, A Real Estate Firm","author":"Sean Purcell","date":"August 4, 2008","format":false,"excerpt":"A Real Estate Firm based on the legal model could have many looks, as do actual law firms.\u00a0 But for a starting point I am going to lay out an achievable structure that will accommodate the greatest majority of agents.\u00a0 The firm would consist of three distinct levels as well\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10856,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10856\/2010-mortgage-broker-renaissance\/","url_meta":{"origin":1703,"position":3},"title":"2010 Mortgage Broker Renaissance","author":"Brian Brady","date":"January 14, 2010","format":false,"excerpt":"Is the business of broking mortgage loans dead?\u00a0 About two years ago, Morgan Brown predicted our demise on Blown Mortgage.\u00a0 His conclusion was that the industry would need a scapegoat for the poor lending practices and that \"blaming\" mortgage brokers was convenient (and not necessarily fair).\u00a0 His conclusion suggested that\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11580,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11580\/will-pre-approval-letters-be-banished\/","url_meta":{"origin":1703,"position":4},"title":"Will Pre-Approval Letters Be Banished?","author":"Brian Brady","date":"March 17, 2010","format":false,"excerpt":"Score one more screw up for the Government-Banking Complex...and watch mortgage brokers thrive because of it. Andrew Duncan of Keller Williams in Tampa, FL reprinted a Mortgage News Daily story: As part of the changes to the Real Estate Settlement Procedures Act, borrowers can no longer shop for a home\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9711,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9711\/how-about-anti-social-media-marketing\/","url_meta":{"origin":1703,"position":5},"title":"How about anti-social media marketing?","author":"Greg Swann","date":"September 9, 2009","format":false,"excerpt":"Responding to Brian Brady's BloodhoundBlog post about the profits and pitfalls of social media marketing, here -- surprise! -- is my contrarian take on the subject.","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1703"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1703\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}