005. SHITS

Text your thoughts directly to Rich.

Show High Interest Then Stall - the VC strategy you hate.

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):
Let's talk about the SHITS.
Ah, nothing like a little pottyhumor to get your attention.
And all seriousness SHITS is anacronym I heard along the way
that perfectly describes the VCslow roll.
It stands for Show High InterestThen Stall.
This is a legitimate venturecapital strategy.

(00:23):
Well, it's less effective inthese current fast, close
environment.
But it still happens with greatfrequency throughout the
country.
The rationale behind this, fromthe VC perspective, is that
before I write a check time ismy ally.
As soon as I write a check, timeis my enemy.
As long as I'm on the sidelines,I'm gathering more information

(00:46):
about you, your company, yourcompetitors, your traction, your
team, the market, everything.
The more that I sit.
The more that I can wait.
And the more that I can gather.
An investor may be genuinelyinterested, but if there's no
need to commit to around,they're going to sit on the
sidelines and wait.
And watch.

(01:07):
When an investor has trueconviction, they will give you a
firm.
Yes.
Or affirm.
No.
Or maybe even a conditional yes.
Such as, as long as we can hitour ownership percentage we're
in, whenever you get a lead.
Unfortunately the most likelyscenario and the one you're
probably most accustomed togetting is the SHITS.
This is not necessarily the markof a bad investor.

(01:30):
It's just one that lacksconviction about your company
right now