No, we are not greedy!

I just happened to read an open letter by Guy Turner and as I complete my time at 500 Startups Batch 6, I find it hard to digest all of it. Here is the link: http://www.builtinchicago.org/blog/open-letter-yc-techstars-and-500-companies-take-fn-money-now-take-all-it

(We @pricebaba are part of Batch 6 at 500 Startups. We are an India business)

Guy’s advice is great. I would happily dilute 5% more at this point and ensure my company survives (oops, I just admitted it). But did any of our mentors or venture partners at 500 Startups told us to maximise our valuation? Not really. We get told often to ‘get the fuck back to work and get more users / customers’

500 Startups never told us to hold the incoming cash and maximize our valuations, they tell us to get a reasonable runway and be prepared if the business takes a little time to pick up or Series A doesn’t happen as easily.

We have also been guided to keep our valuation reasonable. It is kinda weird to tell an angel investor that we are asking for a lower valuation because that’s what our market merits. It also ensures that we aren’t overvalued when raising our next round back in India.

The venture partners at 500 Startups are some of the most wisest people I have met. And no, it is not just Dave McClure. There are a bunch of them helping us out at 500 Startups :) (Hey, Pankaj, Bedy, Rui, George, Parker…).

So on behalf of batch 6 at 500 Startups – GIVE US THE MONEY :) we will take it!

Apologies, typed on mobile while travelling. Updates from desktop soon.

One thought on “No, we are not greedy!

  1. says

    Annkur,

    I love hearing this, and I love your reply!

    Gives me hope that wise minds are prevailing coming out of a few years of bubble.

    Full disclosure: one of your batch 6 colleagues did not take my money :-) (oops, I just admitted it)

    Love to chat any time.