004. Overstating Commitments

Text your thoughts directly to Rich.

If you state that you have a million committed, there better be a million dollars worth of capital in that pool, ready to party. 

About SpringTime Ventures
SpringTime Ventures seeds high-growth startups in healthcare, fintech, logistics, and marketplace businesses. We look for founders with domain expertise, forging a path with a truly transformative technology. We only invest in software-based businesses in the USA. We bring a people-focused approach, work quickly, and reach conviction independently. Our initial check size is $400k to $600k. You can learn more about us and our approach.   

About Rich Maloy
Rich's mission is to rebuild the American dream through entrepreneurship. He works with early stage startups transforming the world, giving all people the opportunity to grow, learn and earn. With prior careers in finance and sales, he's now focused on startups investing through SpringTime Ventures where he is a Managing Partner. He's a father of two young children and loves sci-fi, skiing, and video games.  

Episode Transcript

Rich (00:01):
One note of caution.
It's incredibly important.
You do not overstate thecommitments in your round.
If you state that you have amillion committed, there better
be a million dollars worth ofcapital in that pool, ready to
party.
This is not the place for fakeit till you make it.
There's no faster way to killyour pool party than to lie.

(00:22):
When you misrepresentrelationships or commitments and
an investor uncovers that,you've ruined that relationship.
They've left the party and notonly are they not coming back,
but any time, your name and yourcompany comes up, they're
warning others.
Don't overplay your hand here.
If you really want to testsomebody's commitment, ask them

(00:42):
to use their name.
If they're hesitant on that,then they're not committed.
You will do better by showingthat your funding round is
coming together check by check,person by person, than
overstating this too quickly.