Part 2: Venture capitalists are not your friendly, neighborhood money bag [Video]

They exist and some of them are really rich because they exponentially compound their investment dollars in your company.

Some like to point to @jeffbezos losing money for first 13 years of running @amazon as justifying why their business is not profitable. More likely than not, you are not Bezos. He was losing money because he was pouring every single profit dollar back into actual infrastructure and assets for the business. Most money losing companies are actually just straight turning dollars into quarters, and nickels into pennies with no durable infrastructure or assets to show for it.

You can raise money from friends and family and angels, but at higher levels as a new founder, but very quickly you need to explain to your prospective VC exactly how you’re going to 10x their money that they give you.

Cut all the sophistry, and talk multiples of money. That’s how you get VC’s to chase after you.