TheFunded.com-Can’t we all just get along?

So, after a story in the Wall Street Journal back in August about TheFunded.com, I decided to spend some time on the site and “certify” the Atlanta Technology Angels on the site.  (Note: I am not allowed to join as a “member” because I am considered (I think) by Thefunded.com  to be a venture capitalist.) Although the Atlanta Technology Angels group is not a venture capital fund, TheFunded.com does list “formal” angel groups. I thought that by certifying the group on the site we might receive constructive feedback by entrepreneurs on what we do well…and not well. Getting certified took some time, but I was soon blessed by official certification by the entrepreneur overlords who run the gotcha site. The joke, I found out, was obviously on me.

I went back to the site today after not looking at it for a couple of months to see if anyone had actually rated us. We had one rating by (I think) an entrepreneur–a 3 out of 5. I mentally did a “hmmmm…” and looked for more information. I saw a few numerical ratings on Track Record, Operations, Pitching, Deal terms, Amiable Rejections and Execution Assistance. That’s it. No access to comments or other good feedback that might help us improve in areas that might need it. We received a “4″ out of 5 on deal terms. Does that mean we need to be “tougher” on terms, or does it imply that we are realistic in terms so that entrepreneurs can easily sign a “A’ round with a larger VC firm after our initial investment? We received a “2″ out of 5 for Pitching Efficiency. Does this mean we need to give more time to entrepreneurs, that I need to meet with the companies individually, that we are not giving good feedback, etc? I played around on the site more to see if I missed some information. Nope. I’m not allowed to see any “private” comments by entrepreneurs because in TheFunded.com eyes,  I’m considered a big, bad VC!

So, after a ironic chuckle, I closed out the browser window. Do I care what entrepreneurs think of the Atlanta Technology Angels. Of course! That’s why I signed up…

However, here’s what I think Thefunded.com is missing:

- It’s obvious that the site is trying to “turn the tables” on VC’s and angels and give us a “dose of our own medicine”. Geez, have we all gotten this cynical?

- Simply put, the site instills fear. Fear is a great motivator, but it is often unhealthy and many times a sign of dysfunction.

- Most good venture capital funds (and angel groups) are professional and respectful towards entrepreneurs. Sure, general partners in venture capital funds or leaders of angel groups are busy and may not always give as much time to a entrepreneur  as they may wish or think they deserve. That’s reality, tho, not an intended snub.

- The site pits entrepreneurs and investors against each other and implies that early relationships between the two are antagonistic. This attitude sets the stage for tense initial talk when instead it should be a respectful “get to know you” discussion.

- It’s a sellers market right now. What happens when it turns into a buyers market (which it will eventually…)?

- It purports to give the entrepreneur a “voice”. That’s fine. But let’s talk, not criticize behind veiled screens.

If anyone decides to rate us or make a comment, let me know. I’m always looking for good dialogue.