Thursday, November 02, 2006

Cookie-Cutter VC

The blogosphere is full of buzz about Charles River Venture's new QuickStart program, which lays out a cookie-cutter approach to small investments via convertible notes.

Folks have been quick to point out that convertible notes are nothing new; I took a $250K convertible when I started my first company.

What would really take some guts is for CRV to commit to the second half of the "frictionless VC" concept I outlined in 2005, which is to render a go/no-go decision after 1 week and 2 meetings. This would take much of the hassle out of raising money and enable faster entrepreneurship.

Convertible notes are nothing new--if it takes 3 months to negotiate a deal, what's the benefit? But getting a decision in less than a week? That's something that benefits everyone.


Tim Taylor said...


I've found that convertible notes do a really good job of unnecessarily complicate simple deals.

I understand the need for cash, but in the end, it's often better to avoid it. But I suppose you picked up a 1/4 for the first go round.

George Zachary said...

Hi Chris,

Actually, that's exactly what we are doing. We are making a decision after 2 meetings and 1 week. Not kidding!

Thanks for mentioning and thinking of us at Charles River Ventures.

George Zachary (CRV site) (my blog)

Chris said...

George, I'm impressed--both by the program, and your monitoring of the blogosphere. I'll definitely point people your way!