Redeye VC

Josh Kopelman

Managing Director of First Round Capital.

espite being coastally challenged (currently living in Philadelphia), Josh has been an active entrepreneur and investor in the Internet industry since its commercialization. In 1992, while he was a student at the Wharton School of the University of Pennsylvania, Josh co-founded Infonautics Corporation – an Internet information company. In 1996, Infonautics went public on the NASDAQ stock exchange.

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Fundraising from A-Z

Abc

We just received this email today...I wish them the best of luck.

 


From: [Hidden to Protect the Offending Party]
Sent: Tuesday, March 14, 2006 10:45 AM
To: ****@eglholdings.com; ****@eldorado.com; ****@epvc.com; ****@equuscap.com; ****@equuscap.com; ****@firestarter-llc.com; ****@firstnewenglandcapital.com; ****@firstround.com; ****@fisherlynch.com; ****@fequity.com; ****@fflpartners.com; ****@frontenac.com
Subject: [Hidden to Protect the Offending Party]

Dear potential investors:

I am the owner of [Hidden to Protect the Offending Party]. I am interested in submitting our business plan in an effort to discuss our plans…

 

Comments

Peter Oliver

Just what you want in a potential venture: an extremely lazy founder.

Pascal

Isn't it your job to receive, select and filter business plans that show the market's strengths? And what if someday there aren't any more, what work will you do then?

David U

Would you have minded if he had sent identical emails separately to all these people? Is it all of you being in the same address list that bothers you, or would you have preferred him to approach VCs only one at a time? I'm not trying to make a point, just asking.

Dharmesh Shah

OK, I'm not a VC, but let me try and save Josh some trouble (my good deed of the day):

1. Most VCs have their best dealflow through their existing network (people they know).

2. Unsolicited business plans over email have a very low average quality, and the time it takes to review all of them is generally not warranted.

3. By signaling to all receivers that they've sent the message to a bunch of other VCs is possibly a naive attempt to create competition.

Basically, the net result is that they will likely get *no* response from any of the people the message was sent to.

VCs are an interesting lot. They deal in "pattern matching" and over some number of years, my guess is that they've figured out that messages like these are highly corelated with deals that they wouldn't want to invest it.


First Round Capital

Nicely put Darmesh!

In addition, although all VC's may wear the same khaki pant/blue shirt uniform, there really are differences between the firms. First Round Capital focuses on providing seed-stage venture funding to Internet/consumer technology companies. Another firm on his email list (Fisher Lynch) invests in buyout funds. Not much overlap there.

By sending his email to such a wide and diverse list, the entrepreneur is signaling that he/she hasn't done the research to see if I am a good fit for them. That makes it hard for me to invest the time to see if they are a good fit for me...

Brian Breslin

Josh,
By research do you mean, them having reviewed each of the VC portfolios and seen which types of companies you tend to invest in? That seems like a common sense thing to do, but most people know little to nothing about approaching VCs and pitching to them. Guy Kawasaki does a decent job of educating people through his articles, but its really not something that everyone knows the proper etiquette for.

p.s. came here from crunchnotes, i like the blog, definitely adding it to my feedreader.

oren michels

That's funny, Josh - I could swear I heard that your investment in our company resulted from an unsolicited mass email just like this one... :)

Rob  Hayes

Gosh, just makes you feel all special....

Chris Lake

Surely anybody who doesn't know how to use the BCC field is an idiot. Smart investors don't invest in idiots, right? Isn't it that simple?

lv bag

Gosh, just makes you feel all special....

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