On tonight's episode, my co-founder (and brother) Ben and I pitch to Palo Alt- based venture capitalist Jeff Clavier of SoftTech for an investment of $500,000 for our health-care startup, Ignite. We talk him through our pitch deck just as thousands of entrepreneurs do in Silicon Valley every year hoping that he'll believe in our idea and give us the cash we need to grow our start-up.
But after exerting all our energy into a one-hour meeting, Clavier tells us the investment is not right for him, given his investment in our potential competitor Fitbit, and gives us a big, fat "NO" on investing capital in our start-up.
This is hugely disappointing and also the second "no" we've had after pitching to well-known VC Dave McClure of 500 Startups on last week's episode.
But we are not alone, thousands of start-up entrepreneurs pitch to investors every year and 99% will fail, even at this stage, unable to raise capital for their start-up. Finding the right investor is almost like finding the right person to marry. You have to date a few to get the right match and understand that your relationship with VCs will be a 5-10 year commitment, and so you need to make sure you pick the right match.
I know start-ups that have been in the Valley for two years and still don't have funding. A friend of mine took six months and talking to 54 angels and VCs before he raised half a million for his start-up. Some entrepreneurs even live in their cars to get exposeure to Silicon Valley investors.
Most of these people know nothing about Silicon Valley. When you've grown up here, worked for the major tech giants, then you can say "this is how things are done in Silicon Valley".
One episode was enough for me; this show is aweful and can't imagine it going beyond one season.
SanJoseMama or when your mom is a major CIO and makes all your connections for you. That's you Sarah.
This actually has little to nothing to do with the blog but here goes.
I am so sorry for you Hermione not because of your lack of investments at this point in the show but the conflict Ms. Austin seems to have with not only you but everyone she spends any amount of time with. Don't give up on either your business or personal relationships they all take work. And for every yes I got in life I must have gotten a dozen no's. Oh and I downloaded your app the other day so I assume you got funding but just be yourself in life (as corny as that sounds). You have to be relatable and show your frailties along with your strengths. You will make more money, have a better personal life and generally be a happier person if you keep being the genuine person that you are. Fake people show up a mile away, you can see them coming. Oh and tell your brother to find a nice. smart, pretty girl.
Poor Hermoine, I have been in Silicon Valley all my life, and I can't help but keep shaking my head when she says how things are done in Silicon Valley. That debacle in Dave McClure's office was evidence enough that Girl is steering her Brother in the wrong direction and he needs to start trusting his own instincts.