Zaveri: Deal heat is often manufactured by early investors over-socializing rounds
MZ Zaveri · 20VC: Kleiner Perkins' MZ Zaveri on Why Success In Venture Is About The 3 F's, How VCs Can Manage Deal Heat & Is There Too Much Venture Dollars At Seed · May 29, 2017 · at 15:13
MZ Zaveri, Partner at Kleiner Perkins, warns venture investors against confusing artificially generated round momentum with real company traction on The 20 Minute VC.
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“In many ways, actually, I've seen that if you kind of peel back the onion, you can kind of find The root node or sort of the creator, there's sort of individuals that, you know, may have feel sort of have put some early dollars into a financing and have a strong network and sort of be sharing and shopping, shopping a financing excessively. And then you realize, wait, the reason a lot of people are talking about this is because one or two or three folks, and you want to really understand, like, is, is there momentum because there's this company has something, some meat and some Grounding around momentum. Or is it simply like, hey, this has been an over-socialized deal.”
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