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.

3 thoughts on “Cookie-Cutter VC

  1. Chris,

    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.

  2. 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)

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

Leave a Reply

Your email address will not be published. Required fields are marked *