Extra! Dr. Kedrosky VC Lesson: Business Plan Required
“Dr. Kedrosky” not only wears many hats–venture capitalist, self-described media personality and entrepreneur–the advice he dispenses differs depending upon the hat du jour!
Today’s Twitter funding announcement by Fred Wilson’s Union Square Ventures case in point.
Under his “media personality” hat at his blog, Infectious Greed, Paul Kedrosky rallys behind the Wilson Web 2.0 startup stance: Frankly, I don’t give a damn, about business plans:
Business plans are overrated, and profits perhaps even more so.
Right. I would wager though that Twitter would undoubtedly welcome some profits, the bigger the better!
The Doctor’s presciption for would be entrepreneurial pitchers to VCs nevertheless:
“Presenting a full and detailed plan is, nine times out of ten, a path to a ‘No’”… AND…
the more “wildly unprofitable” the better
Really? Then why does Kedrosky demand just such a “full and detailed plan” when he wears his “venture partner” hat for Ventures West, deemed “Canada’s largest institutional venture capital firm.”
The Ventures West “investment process” that is recommended of all entrepreneurs seeking to submit an investment proposal:
Ventures West welcomes the opportunity to hear from you and discuss your business idea. A well thought out, structured, and concise business plan is often the most effective method of communicating a business opportunity to external audiences such as suppliers of capital, potential hires, and strategic partners.
How much do business plans matter to Dr. Kedrosky’s Venture’s West? Their entrepreneur online pitch process is headlined “business plan submission form” AND the atttachment of a business plan is a requirement (MS Word or Adobe Acrobat format OK).
Advice to entreprenuers: Follow where Kedrosky’s VC money is, not where his Infectious Greed mouth is.
Ventures West goes on to confirm just how valuable business plans are, throughout the entire lifecycle of a startup:
Business and Financial Planning
Ventures West team is a valuable resource when it comes to strategic planning. We can help you identify key business targets, develop a financial plan, establish key business and financing milestones and track your success.
Hey, the Canadians DO get it!
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