Foundry Group Moves to Twitter Platform for Deal Evaluation

While we are fans of investing in companies in the email ecosystem with our thematic investing approach, we have come to the realization that email is not the most efficient form of communication for evaluating potential investment opportunities.

We are blessed to have a large number of entrepreneurs who are interested in us as potential partners and the volume of email we receive can sometimes overwhelm us, so we began the investigation for a more streamlined approach.  We hired consultants from McKinsey & Company last summer and after 9 months of working with us to learn how we operate, it was obvious that Twitter was the right choice.

The benefits of Twitter versus other platforms were clear.  First, everyone is on Twitter, so there is no chance that an entrepreneur wouldn’t be able to reach us.  Second, this will greatly reduce the number of spreadsheets and financial projections that we would feel obligated to read.  We realize that financial projects are just that – projections and therefore are never accurate.  We’ve decided to stop pretending that they make sense.  Third, and perhaps most importantly, if an entrepreneur cannot explain their opportunity in 140 characters or less, how focused can they be?

Besides, with the amount of board meetings that we attend, verbosity is not a wanted characteristic.

Speaking of board meetings, we have begun the process of streamlining board meetings with McKinsey, as well.  We’re hoping to devise a similar approach using Skype to eliminate the need for face-to-face meetings and travel.

So, if you are an entrepreneur and want to work with us, Tweet us!  One thing to note: PLEASE do not send us twitter links or multiple tweets per company.  This is just as bad as email and really destroys the spirit of what we are trying to do here.

We look forward to hearing from you:

@bfeld                                                 @ryan_mcintyre

@jasonmendelson                          @sether

  • April Fool

    April Fools

  • http://ventureswell.com Luke G

    Haha. nice.

  • http://www.adrianscott.com Adrian Scott

    Nice, hehe.One tip: use the tweet submission mechanism as a data point. Time of day is another good one that should help returns.

  • inboulder

    @bfeld @ryan_mcintyre

    @jasonmendelson @sether

    Hi guys, as requested I've encoded my 42 slide powerpoint pitch into 140 char lines of ASCII (23,000 lines) and will begin tweeting it line by line ASAP, should be done in a few days.

  • http://www.headup.com Tal Keinan

    Very tempted to call this an April Fool post. I highly doubt that you reached out to McKinsey & Company for that.

  • a guy

    hello,
    here is a comment that makes no attempt to fit in 140 characters:
    you could not have put out a more damaging announcement out to serious entrepreneurs.

    a lethal combination of insane hype (twitter, and forcing entrepreneurs to actually say something intelligent on twitter), combined with the acknowledgment that this glorious idea was actually hatched by a mckinsey team, which took no less than 9 (!!!) months to put this into one of their decks (they will recommend $B mergers in three weeks, but they took 9 months to suggest twitter to you guys – says something about their understanding of your willingness-to-pay, willingness to pay with your LP's money, that is).
    the cherry on top was the sneak preview into actually working with you guys (as opposed to pitching to you) – mckinsey-nonsense-processes will be hovering over board meetings, just to make sure that small as the company may be, you will make sure it stands no chance of actually being nimble.

    a few questions (and this may actually take 140 characters, so you can start counting):
    1. how many seed-stage startups can you get off the ground with the money you paid mckinsey for this nonsense?
    2. did mckinsey summarize these Deep Thoughts in more than 140 characters, or was it more like a 20-slide deck?
    3. was there no apprehension on your end during the entire mckinsey study that some other VC would beat you to this twitter-only punch? you and the mckinsey team have demonstrated sound judgment under conditions of extreme pressure. i salute you for that.

    yours is the single most damaging professional blog entry i've ever read.

    • http://www.ryanmcintyre.com Ryan

      Dear Mr. “A Guy” / Anonymous Coward,

      April Fools!

  • http://www.eyesandfeet.com Lux

    Did someone just read Rework? Maybe the McKinsey guys did.

  • Anonymous

    Nine months and an untold number of McKinsey PowerPoint presentations to suggest using Twitter!!
    This sounds like something for a Tom Friedman column. I'd call it: “The Fall of the American Empire”. What intellectual and financial gluttony! What an infantile idea!
    (I confess: technically, at 230 characters (including exclamation marks!! and another !) it's two tweets, which goes against the McKinsey streamlined process. Apologies).

  • Ski Milburn

    Twitter is so 15 minutes ago. I wanted to send you a Business Plan for TwiT, a new messaging service that limits transmissions to 14 characters. Here it is:

    +fast=dumb=$!!

    I'll send the wire instructions so you can send us your investment. $100 Million will be fine. We'll Tweet you when its gone.

    Happy Fool, April

    • BradA

      Count me in! I hate being left behind on the next great technological wonder…

  • Mohan

    I heard kpcb went with facebook and garage went with myspace

  • lukeobrien

    Next year insist that all business plans be recorded on 78 rpm vinyl so you can listen to them on the company Victrola.