Archive for May, 2007

Funding Rejection

Saturday, May 26th, 2007

Based on statistics gleaned from Venture Economics, ACA , PriceWaterhouseCoopers entrepreneurs try to start some 5 million businesses in the U.S. every year. Of that total, 400,000 are looking for capital beyond what they can charge to their credit cards.
Most of them approach Friends, Family and Angels. From those approaching VCs less than 2% receive funding.

Having said that, investment decisions are inherently subjective and in no way reflects any negative sentiment toward the business idea.

Scott Cook (Intuit) has been rejected 39 times before it was funded.
Cisco was rejected by 76 VCs before they got funding.

And here is a list of companies Bessemer Venture didn’t invest in:


The Birth!

Friday, May 25th, 2007

Being in constant touch with entrepreneurs and investors and exposed to common issues inspired us to start this blog.

The purpose is to openly discuss and analyze issues facing early stage companies and their investors.

Please note that the statements and opinions expressed here are solely those of their authors and are only meant to encourage and foster additional comments, suggestions and insights.

So don’t be shy. Get in touch and share your stories and experiences.