asked by Farshid Sepassi over 3 years ago
Baltimore Sun reports another entrepreneurs heading West for Gold. I have lost the number of well known great entrepreneurs in the East who could not get the attention of the investors in the East. They ended up heading West and a few years later... Jackpot! Examples: Mark Zuckerberg of Facebook, Shervin Pishvar of SGN, and now Derek Gabbard:
To find investors: Go west, young startup — but come back
I have had a mixed feeling about this. As a serial entrepreneurs and knowing ton of entrepreneurs both in the East & the West coast, here is one of the fundamental differences between our VCs here in DC area and those in the West:
Their classic mistake is asking entrepreneurs the financial and business model question during the very first meeting. Most first-time, young entrepreneurs lack business and financial experience. They typically have an idea and have built only the prototype. If interested, like most VCs in Silicon Valley, they need to a) Do their own part to evaluate the market and its potential for the product, and b) Tap into their rolodex and help them bring in the business-minded management team to execute the company’s vision. This way, the entrepreneur/founder focuses on the technology. So, spare them the business questions. Unless they intend to stay as the CEO or you intend for them to stay on as the CEO.
I blogged about it here two years ago:
Washington DC Potomac River vs. California Silicon Valley