SEOmoz emerged from our first round of VC funding with a profitable and growing business. Now seeking a B round, we get to see how things change with company size, shifting market dynamics, and a different pool of interested investors.
If you've ever wondered what the VC process is like for a small business, this presentation will give you a good idea of what to expect should you ever go on the hunt for capital.
SEOmoz: 10 Disturbing Similarities Between Dating & Raising Capital from Scott Willoughby on Vimeo.
Postscript From Rand: This presentation is much longer than our typical Whiteboard Friday (about 22 minutes), but is fun if you're interested in the VC world. I also wanted to note that if you're interested in exactly what SEOmoz is up to on the VC front, this blog post is helpful to read. Once we wrap up the process (and, as noted, we may not end up taking capital if we don't like the deal terms), I'll be sure to give lots more insight into our experience. As I note in the video, it's a rollercoaster ride, it takes up incredibly amounts of time and it's massively stressful, but hopefully, at the end of the day, worthwhile.
For some additional good reading on the topic, see Paul Graham's "Ramen Profitable" as well as Fred Wilson's post on why the VC world is due for some potential shrinkage.
Great presentation!
Very useful content and you were right about most things. The only part that I disagreed with is the "their time is worth more than your time, so if they're spending time with you, they're interested..." part.
That's not necessarily true. If a VC has an interest in a particular sector and is trying to learn, or they're dating one level of hotness about themselves (i.e. your deal is hotter than they are), it's entirely possible for them to spend a bunch of time with you even though they're not likely going to do a deal.
Gives me some good food for thought for the upcoming SEOmoz Pro training presentation on startups.
That's really good to know - I think that SEOmoz, as a non-Facebook/Twitter/Hubspot (that's right, I went there!) style deal probably doesn't get too much of that, but if you're super hot, I could see that happening.
Really excited to hear your talk next week here in Seattle, Dharmesh!
Good presentation, Rand. My prior employer was VC-backed. When I interviewed for what is now my current job, it was the first question I asked. While I am not a proponent of VC, I understand it may be a good fit for some business models.
I'm sure you know about this site, 'The Funded' - I used it in a cursory way to determine if I wanted to work for a VC-backed company, based on reviews. If the VC in question had negative (but reasonable) reviews, it acted for me as a great 'red flag.' For those unfamiliar with 'The Funded', it's a portal for peer reviews about different VC companies. It shows ratings, comments, etc.
Thanks for taking us all on your ride and maintaining transparency - great job!
I love it, planning on making some moves within the next few years and this is definitely something I needed to see. Funny how you brought up Twitter though... it's just like an employee getting fired for using social media/social networking. Just another example of how not to shoot yourself in the foot.
ps. venture brothers is hilarious. ^_-
I have to say, "Nuke the Whales" propaganda, strategically positioned in the background is classic (and hilarious)!
I know this wasn't intentional, but in the opening minutes of the video, when the cameraman zooms in on your face, he/she actually adjusts the frame in a manner that highlights the poster bill.
Surely a cringe was eminent.
Great video Rand, always interested in the VC process.
All the best!
Watching this whiteboard at work had a few people looking over my shoulder, and I imagine it's because of the DATING titles that were prevalent. I'm sure I'll be called into a meeting shortly to answer for this.
Thanks for this very helpful videos. Guy Kawasaki, from Garage Technology Ventures is giving also some very helpful tips for raisung VC money.
Check out the shorts videos on my blog.
https://entrepreneurshipvideo.com/index.php/2008/10/guy-kawasaki-uber-the-art-of-raising-venture-capital/
the video is private?
I tested it in a few browsers and it seems to work fine whether I'm logged into Vimeo or not. Is anyone else having trouble?
nope. No problems here...
Works fine on Firefox!
great presentation Rand!
VC seems quite taboo - everyone knows about it but very few people openly exchange information!
hmm Rand, seems it does not work for me.
I played but nothing happened, it's the first time that happened to me
oops, it's working now, my bad.
Sorry Rand, it's working fine now.
This weeks and last weeks STILL are not working for me. Firefox 3.5 here...
EDIT: It just does not show up...
If it does not show up, it's probably internet connection.
usually WhiteBoard Friday's dont work for me when I am using FireFox so I just switch over to I.E. (about the only time I do this) and it works. However this week it's working for me on FireFox
Firstly, great job on the lecture. Style and delivery were fantastic.
I must be honest. I rarely log in to SEOmoz, even though I am subscribed to the blog RSS and read nearly every entry.
But after viewing that video, I found myself compelled to let you know that I think this is your most interesting (video) post thus far.
Perhaps it's just my personal interest, but awesome info for anyone starting their own company.
Cheers,
Chris
No problems - it is working here. I really like what you have done with this video, think of VC in terms of something everyone does dating is a great idea that people can relate to.