In March (2007), a new site called TheFunded was started by a group of emerging business executives who wanted to talk about their fundraising experiences with other CEOs - in a private fashion. It's a very intriguing and informative site for entrepreneurs who want direct insight from other entrepreneurs who have approached venture capitalists as a possible funding source.
Over 95% of the 700+ members of TheFunded are serial CEO's who have raised monies previously for earlier companies and are now looking to raise Series A, Series B, and Series C rounds for their current company.The site claims that 1,500 membership applications have been processed, and approximately one third have been rejected. To date, 1,000 member have submitted reviews of 250 separate funds (who finance new businesses) and each fund has received an average of 3.8 pieces of feedback.
The site has experienced rapid growth since its inception, and it claims that the venture capital community has taken noticed and may be thinking about how to improve their interactions with entrepreneurs/emerging business executives during fundraising activity. Certainly if this site keeps attracting media attention as well as publicizing wide-ranging reviews (both positive and negative) from credible entrepreneurial sources, a lot of people will be more closely examining the process of working with venture capitalists.
This is clearly an experiment in process, and the direct, bottom-line benefits are still subject for interpretation. Maybe entrepreneurs will come to better understand how to approach the financing process and customize their approach for different venture capital firm requirements. Maybe venture capitalists will take note of the specific critiques and adapt certain behaviors accordingly. Either way, a sea change is possible if these reviews penetrate the typical barriers that surround the VC community.
Shivonne Byrne, Innuity CMO