005. SHITS
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.
Let's talk about the SHITS. Ah, nothing like a little potty humor to get your attention. And all seriousness SHITS is an acronym I heard along the way that perfectly describes the VC slow roll. It stands for Show High Interest Then Stall. This is a legitimate venture capital strategy. Well, it's less effective in these current fast, close environment. But it still happens with great frequency throughout the country. The rationale behind this, from the VC perspective, is that before I write a check time is my ally. As soon as I write a check, time is my enemy. As long as I'm on the sidelines, I'm gathering more information about you, your company, your competitors, 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 genuinely interested, but if there's no need to commit to around, they're going to sit on the sidelines and wait. And watch. When an investor has true conviction, they will give you a firm. Yes. Or affirm. No. Or maybe even a conditional yes. Such as, as long as we can hit our ownership percentage we're in, whenever you get a lead. Unfortunately the most likely scenario and the one you're probably most accustomed to getting is the SHITS. This is not necessarily the mark of a bad investor. It's just one that lacks conviction about your company right now
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