Ask a VC: why do you want to have a coffee with me?
(Last updated on 30 October 2023)
Not a week goes by without an entrepreneur sending me an email, a LinkedIn message, a message on one of the gazillion apps that events promote for their own event, and any of the messenging apps (Whatsapp if they have my number, telegram, etc.). for a coffee …
Why do you want to coffee with me I ask myself every time. These are just a couple of possibilities :
1) you think you can pitch me a business in 10–15 min. That would be great, but since I get over 60 decks every week (I do not log the random emails with no full investment deck anymore), I would need to take 15m x 60 meetings every week? That’s 15 hours of coffees every week. Assuming that everyone can line up one after the other the whole day. Hence it’s more like 3–4 days a week devoted to drinking coffee with entrepreneurs. I actually have a process in place for managing inbound dealflow. Please respect that, it saves you and me time.
As VCs, we are all professionals, we aim to reply to every request as fast as possible, and we have resources in place to give a chance to every opportunity. But we also need time to analyze the deals, perform DD, support our companies, report to our LPs, give back to the community, update our points of view; basically we’re pretty busy for good reasons.
2) you think that because you talked to me, you get on top of the pile and get a better chance. That’s potentially true, but then how do I decide on who I have coffee with or not? or first? it’s back to question 1) basically. The best way is to come through a warm introduction. You actually also stand a better chance to be upgraded in the process if you have researched us before, and what you really want to achieve with us, because you’ll be in my sweet spot.
The problem becomes even more acute when I attend an event, and I attend 1–3 events every month. Everyone uses the feature of the event app to request a meeting, a speed-dating, a coffee — see points 1) and 2) above. As an example, I’m going to an event next week in London, and I have about 100 requests to meet already (I just say no to everyone, and send them to my form). . Seriously, the best way to prepare for an event, is to send me a deck well in advance (at least 2 weeks), so that I can process it, log it, decide whether I’m interested, do some basic research, and then meet at the event with the right questions. Or just find me at an event, and we can chat for a few minutes.
Somehow events are counter-intuitive as well: why would I pay for a flight /train ticket, a hotel, taxis, meals to go to an event just to meet a series of entrepreneurs that I can just meet over a video call now and totally miss out on the event? Somehow, all entrepreneurs assume my time is free and they can just can grab a slot.
I actually attend events for a number of other reasons :
- see a batch of pitches (3–10 min each x many), and that is an effective use of my time.
- to network with my fellow VCs, because we all have companies to re-finance, and having everyone in the same place is a good serendipity tool (although we do that a lot by email/chat too).
- like entrepreneurs, see some people on stage discuss the major trends of our industries and get updated; I could also do that by watching livestreams (which I do whilst multitasking), but it’s good sometimes to take the time for that.
- walk around the booths (I hate it when the signage or the kakemonos don’t even say what the company does), run into a random person (with no prior meeting, hence reducing the interaction to just a few minutes), or pick up a weak signal.
Bottom line: I reserve face-to-face meetings to situations when I am seriously interested in a company, want to perform on-site due-diligence, attend board meetings, or help our portfolio companies on something specific. Not to source dealflow.
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I consult with corporates and startups and help them address issues like this and many more. Don’t hesitate to reach out at www.rodrigosepulveda.com or book a video call with me on intro.co.
