Saturday, February 04, 2012

VC competition

I'm not angry we just lost. It's because we lost even though our technicals are right and everyone else's is so deeply flawed.

After looking at it, we lost mainly because we used the right financial instrument, but the entrepreneur didn't understand it because they didn't do their homework. Our fault was that we didn't communicate that fact.

But the valuations and equity stakes that the other team gave are patently ridiculous. 50% for a seed stage round? That "poisons the well" more than any Series A round.

I learned something today about myself. I fucking hate, deep hatred, for events that occur inappropriately if the technical answer loses to fluff, especially when the fluff will never work and has been proven. And especially when we were being the most fair, and yet people still pick stuff that's bad for them.

Abstractly, I distinctly hate it when we lose because of someone else's incompetence (in this case, the entrepreneur). I think that's the biggest thing and why I was angry.

Congrats to the team that won. I do hope that they will win regionals, but they will need to shore up their knowledge.

See you in my dreams, my Valkyrie.

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