Comments on: How to fool VCs into thinking you have traction, Part 4 http://andrewchenblog.com/2007/06/12/how-to-fool-vcs-into-thinking-you-have-traction-part-4/ Essays on viral marketing, freemium, and social gaming Sun, 30 Oct 2011 02:46:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrew Chen http://andrewchenblog.com/2007/06/12/how-to-fool-vcs-into-thinking-you-have-traction-part-4/comment-page-1/#comment-655 Andrew Chen Wed, 13 Jun 2007 07:40:00 +0000 http://andrewchenblog.com/2007/06/12/how-to-fool-vcs-into-thinking-you-have-traction-part-4/#comment-655 <p>I'd encourage you to read the rest of the series, particularly the intro :)</p> <p>In fact, I work at a VC and the different techniques I'm laying out are in fact things that people should watch for.</p> <p>The fake accounts thing is not far off from what people do in dating sites and social networks which set up really attractive members to woo people to sign up. I think any smart investor should know how to dig into the company enough to understand what's going on.</p> I’d encourage you to read the rest of the series, particularly the intro :)

In fact, I work at a VC and the different techniques I’m laying out are in fact things that people should watch for.

The fake accounts thing is not far off from what people do in dating sites and social networks which set up really attractive members to woo people to sign up. I think any smart investor should know how to dig into the company enough to understand what’s going on.

]]> By: John Wilson http://andrewchenblog.com/2007/06/12/how-to-fool-vcs-into-thinking-you-have-traction-part-4/comment-page-1/#comment-654 John Wilson Wed, 13 Jun 2007 07:37:08 +0000 http://andrewchenblog.com/2007/06/12/how-to-fool-vcs-into-thinking-you-have-traction-part-4/#comment-654 <p>Andrew, I confess I haven't yet read the whole series above. However, I believe your premise is screwed up which may I paraphrase to - "Here's how to cheat your investors". Perhaps you could introduce a few false accounts too, or would that be too easily spotted. </p> <p>Unless one is trying to commit a fraud/scam, it's hard to see getting funding under such circumstances as a positive thing. </p> <p>In a Barcamp presentation I did (<a href="http://www.slideshare.net/johndwilson/sex-the-investor/)" rel="nofollow">http://www.slideshare.net/johndwilson/sex-the-investor/)</a> I likened the entrepreneur/investor relationship to one of sex,dating, & marriage. If you begin the relationship by cheating, it doesn't bode well for the long term. Turn it around and if you get screwed via cunningly worded funding terms, how are you going to react?</p> Andrew, I confess I haven’t yet read the whole series above. However, I believe your premise is screwed up which may I paraphrase to – “Here’s how to cheat your investors”. Perhaps you could introduce a few false accounts too, or would that be too easily spotted.

Unless one is trying to commit a fraud/scam, it’s hard to see getting funding under such circumstances as a positive thing.

In a Barcamp presentation I did (http://www.slideshare.net/johndwilson/sex-the-investor/) I likened the entrepreneur/investor relationship to one of sex,dating, & marriage. If you begin the relationship by cheating, it doesn’t bode well for the long term. Turn it around and if you get screwed via cunningly worded funding terms, how are you going to react?

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