VCs "love bomb" hot startups with cash and gifts
Several companies have recently raised venture money with multiple offers on the table according to this San Jose Mercury News story which features Scalix, which provides a Linux-based email platform:
Most people think it's tough now for entrepreneurs to get money. But if you have the right experience, and a good idea, venture capitalists will fight to give you their money -- and even shower you with gifts to make sure you take it.
...But hot ones get wrapped up in little more than a month. New Enterprise Associates calls the process of wooing a hot company ``love bombing.'' Partner Stewart Alsop said he ``bounced around in his chair'' when Farris called him April 10 to tell him about Scalix.
...He delivered a bottle of 2000 Rochiolli Pinot Noir -- from his personal collection -- to Farris' doorstep on April 24, the day he delivered his written offer to invest. He then dropped by the Mayfield Fund, and delivered a present to Allen Morgan, the partner who helped incubate Scalix in Mayfield's basement: a bottle of Knob Creek bourbon, Morgan's favorite. As an existing investor, Morgan would play a key role in deciding. To top it off, Alsop bought Farris dinner at the well-known Bacchanal restaurant.