$8M dollars....before the 68, in front of the money!

How to raise money from a VC?

Before I comment on this video, I'd like to provide the appropriate contextual background. I read a lot of blogs. When I say a lot, I mean several blogs from a wide spectrum of bloggers. Entrepreneurs, VCs, marketing gurus, scientists, economists, sports fans, gossipers, etc........Like I said, I read a lot of blogs. However, I am still looking for a compelling reason to accept VC money.

Shpigler's video is quite amusing. I don't speak Hebrew, but the subtitles (good work 5min) are quite helpful. Throw in the mannerisms of a cocky angel, the cigar waving, the glass of scotch and you have all the makings of a great comedy. However, the most compelling part of the video is the content.

Many may dismiss the "content" as typical, amateurish, angel rhetoric. I beg to differ. It's really quite simple. If you're managing a venture fund in which 9 out of 10 of your investments fail, how do you maintain abnormal returns? How do you satisfy your LPs? The 1 shining star must makeup for the 9 dogs. If you're a dog, you don't care. But, if you are the star.....there is an inherent conflict of interest. You are essentially responsible for making up for the dogs.

Riddle me this:

If one could raise the same amount of money at the same valuation and the same deal terms from the following options, how would one evaluate the choices?

A. the best VC in the world with the best track record and connections out the wazoo

B. an angel investor who is a successful, serial entrepreneur

C. a strategic partner who has been in the industry for 50 years

D. the venture arm of a multi billion dollar public corporation

Any takers?