Subject: Re: shooting holes in the sky
From: D V Henkel-Wallace <gumby@henkel-wallace.org>
Date: Tue, 9 Oct 2001 11:57:58 -0700

At 10:06 -0700 2001-10-09, Ian Lance Taylor wrote:
>Tom Lord <lord@regexps.com> writes:
>
>  > I get the cold sholder from various FSB execs and VCs when I propose
>  > business (or business unit) plans selected from the design space
>  > described below.  Would someone, perhaps, like to hire me and we can
>  > explore this particular space together?
>[...]
>Note that your little spiel didn't answer the first two questions VCs
>ask.  What are the barriers to entry?  What is your exit strategy?
>
>If there are no barriers to entry, it's not interesting to a VC.
>After you show the path, somebody else will do it cheaper and steal
>your market.  If your exit strategy doesn't return at least 10 times
>the initial investment, it's not interesting to a VC.  That's not the
>business they're in.  100% ROI?  That's not nearly enough.

The VCs will even tell you what they want, Tom.  Try going to 
www.sequoiacap.com and click on "Process."

Pay extra attention to "What we expect" and "How to format a plan" 
(under item 3)-- the latter is simply an outline, but if you don't 
reflect on _why_ they want those things, you'll fail.  For exampl, 
Ian's questions are there, but not explicitly stated.  This isn't 
because they want to trick you -- I think they're trying to be as 
clear as possible -- but because there are many ways to come up with 
the answers and many things to look for.