demo days are being put on hold. The often flashy events for founders to connect with investors have long been part of the Y Combinator program.
It isn't a good use of time or money for a demo day.
A lot of VCs sign deals with the top startups before demo day. The commotion around the event means that investors jump ahead of the queue and undermine the need for the event in the first place.
The demo day is an outdated tradition in an investment landscape that has changed a lot. With capital flows surging, founders are more careful about the investors they bring on board, they want mentorship, emotional support and investors to pay attention.
What we need is to better understand why demo day falls short and how to source deals on a much more intimate level.
Getting rid of demo day won't help founders find or let investors offer that value. A differently formatted event won't be effective either. We need to understand why demo day falls short and how to source deals on a more intimate level.
There are demo days. A founder stands on stage and gives a speech for 30 minutes or so. It's not the same as having a real business solution or an efficiently run company if you have the most impressive pitch or charismatic founder.
An opinion piece on TheNextWeb claims that VC funds are similar to Ponzi schemes because investors think along the lines of "Will this person make me money?" Investment is turned into gambling because of the emphasis on showmanship.
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