This article explores the VC chaos encountered in seed and Series A financing, listing the top ten common issues. The article is written by Mike Silagadze, the founder of Ether.fi, and compiled and translated by ChainCatcher.
Summary:
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Background:
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Today, Mike Silagadze, the founder of Ether.fi, released a post on social media about the chaos encountered in Crypto VC in seed and Series A rounds. The article is translated below:
1. Multiple First-time Encounters
You meet with a partner or associate, and the meeting goes smoothly. But they arrange another meeting with another partner, and in the next meeting, that partner has no idea who you are, hasn’t received relevant presentations, and hasn’t read the notes. So you go through another first-time encounter. If this happens three or more times, it becomes even more “interesting.”
2. Sudden Change
A partner contacts you proactively, hearing that you are fundraising, and requests a meeting. But during the meeting, the partner doesn’t show up and instead sends a colleague as a substitute. If this situation occurs multiple times in the fundraising process, it becomes even more “intriguing.”
3. Anonymous Individuals
Someone introduces you to a VC investor who seems interested in your project, so you arrange a meeting. But during the video conference, this VC investor remains anonymous and uses a darn Wassie pfp (referring to a default avatar on a certain social media or chat app). I like seeing anonymous investors on the shareholder list; I heard these investors are the most rational and helpful.
4. Disappearance
You meet with a VC investor multiple times, and they ask many follow-up questions, requesting more information, financial statements, and roadmaps. But suddenly, there is no more communication, which is quite eerie.
5. “Option” Game
You spend two weeks meeting with a fund, answering questions and conducting due diligence. Then, there is a period of no communication, and you think you have been left hanging. Suddenly, you receive a message: “How is the fundraising progressing? Let’s have another call.” After the call, there is no communication again. This situation repeats several times. Did they disappear? No, they are just testing a free “option.”
6. Self-promotion
A call with a partner lasts for 30 minutes, and 25 minutes of it is spent listening to them talking about themselves.
7. Someone Else’s “Wedding Dress”
A fund agrees to meet and extensively discusses strategies, tech stacks, and analysis with you. Then, there is no follow-up, as if they disappeared. One week later, they announce that they have invested in a funding round for your competitor. You have been used, wearing someone else’s “wedding dress”!
8. Mental Confusion
Within the first 30 seconds of the meeting, you are convinced that this VC investor is on stimulants. As they become more aggressive and refute everything you say, the situation worsens. By the end of the meeting, they still say, “Let me know how I can help.”
9. Deviation from the Topic
The partner knows nothing about the project you are building. Throughout the meeting, they try to convince you to build a completely different business. If they succeed in convincing you, it’s an even bigger “plus.”
10. Pseudo Intellectuals
You have a phone call with a 22-year-old assistant whose experience is limited to a 3-month internship at Goldman Sachs and losing bonuses in meme coin gambling. They passionately express their opinions and offer advice during the meeting.
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