Entrepreneurs: the Truth about Warm Intros
by Miki Saxon
The questions on Quora provide a fascinating look into today’s mindset, which makes for a giant time-suck, so I rarely allow myself the luxury.
However, Why are VCs so adamant about warm intros? caught my attention, because I am asked it so often.
Most of the responses were justifications from VCs, but two provided a refreshing dose of reality.
Not surprising that neither are VCs.
The reason they want warm intros is because they are too lazy to research things themselves and many of them don’t know anything about starting a company or building one. The smart experienced guys at the top who have actually done something are too busy so they have the dime-a–dozen MBAs they hire do grunt work. Since the d-a-d has never actually built anything, and doesn’t really know what you do, they want a “warm” intro. Warm means someone else they can blame if they screw up yet again. —David Feldman, CEO, ZF Micro Solutions, Inc.
Classism. No further to look than that. Let’s not make it complicated by trying to avoid the unpleasant. —Michael O. Church
The ‘warm intro’ investor bias is one of the worst, because it raises the funding bar to almost insurmountable heights, which limits the entrepreneurial pool and even reduces the chances of success.
Whether it’s laziness, fear of the unknown or insecurity outside of their comfort zone doesn’t matter — the result is the same.
Too many good founders/companies don’t get funded.
Flickr image credit: Alexx Malev
June 18th, 2015 at 11:38 am
Excellent post, Miki. This has certainly been my experience and that of most founders I speak to.
June 18th, 2015 at 11:56 am
Thanks, KG. It’s really sad; the startup community is far less vibrant as a result of the insular attitude.