Flattering or terrifying
At yesterday evening's Rare Founders event, a founder presented me with this.
Flattering or Terrifying?
At yesterday evening's Rare Founders event, a founder presented me with this.
Let me know if I should be flattered or terrified or both in the comments, please.
Chi-Kit Pang
Chi-Kit Pang and I were at school together. He introduced me to Twin Peaks when he came over for A-Level Maths and Further Maths revision.
Chi-Kit Pang and I were at school together. He introduced me to Twin Peaks when he came over for A-Level Maths and Further Maths revision.
We don't see each other often enough but when we do it's as if no time has passed.
Great to see you, Chi-Kit, and thank you for the coffee.
Rare Founders - How to raise from US VCs
I have been at Camp Bestival with my family for a few days. I'm back in London this evening to speak on what US VCs look for in startups.
I have been at Camp Bestival with my family for a few days. I'm back in London this evening to speak on what US VCs look for in startups.
Come and hear me speak at the Rare Founders event alongside Arif Damji of Conductive Ventures and Vasily Alekseenko himself.
See you this evening.
If you’re pre revenue at Seed
This is fine but investors are going to be choosing between you and other startups that have revenue. Why you?
If you're pre revenue at Seed...
This is fine but investors are going to be choosing between you and other startups that have revenue. Why you?
Was this part of your plan?
Have you generated other important proof points?
Can you explain why you are likely to grow faster than others from now?
Is the maximum upside from here larger than other opportunities?
If it's just because you failed to generate revenue, you are in trouble. If you can evidence some of the above, you still have a great shot.
Time will tell
My article - People are worried about AI - got published in The Guernsey Press - thank you Amanda (Mandy) Eulenkamp.
My article - People are worried about AI - got published in The Guernsey Press - thank you Amanda (Mandy) Eulenkamp.
Every new technology leads to fear of the unknown. Almost always that fear is overblown and the benefits far exceed the downsides.
Time, as always, will tell.
Be so good they can’t ignore you
There is a lot of advice flying about on how to raise venture capital, some of it from me. All of that advice is meant to make it as easy as possible for potential investors to see how good you are.
"Be so good they can't ignore you." - Steve Martin.
There is a lot of advice flying about on how to raise venture capital, some of it from me. All of that advice is meant to make it as easy as possible for potential investors to see how good you are.
The underlying truth has to be that when they see it, the opportunity is truly great.
In other words, be so good they can't ignore you.
Runna growth
Incredible to see the Runna team grow to this size from approximately ten full time members in late 2022 when I first met them.
Incredible to see the Runna team grow to this size from approximately ten full time members in late 2022 when I first met them.
Congratulations to Dom Maskell, Ben Parker, Walter Holohan et al on the incredible business growth underlying this.
My SLA
1. I will try and get back to you as soon as possible. Please chase me if I don’t.
My SLA
1. I will try and get back to you as soon as possible. Please chase me if I don’t.
2. If I don’t hear from you, I will chase politely and respectfully. I am persistent.
3. If you’re busy right now, tell me when I should come back to you or you will come back to me and I will pause until then.
4. If you no longer want to hear from me, tell me.
5. If we’ve never spoken before and you are trying to sell me something, I may not reply. Do not chase.
Setting expectations
Set expectations correctly even if it might cause a no.
Set expectations correctly even if it might cause a no.
Why?
1. It's the right thing to do.
2. You may want to do business with this person again.
3. Reputation is everything.
The challenges of raising
Founders, what's the single most challenging part of the raising process?
Founders, what's the single most challenging part of the raising process?
How do you manage that? (you don't have to answer this one)
Aim High or Go Home
I wrote an article on fundraising in the US for Vasily Alekseenko's Rare Founders newsletter.
"Aim High or Go Home"
I wrote an article on fundraising in the US for Vasily Alekseenko's Rare Founders newsletter.
I am speaking on the same subject at their event on the 30th.
So much better
Google won because, despite the fact they were nowhere near the first search engine, their product was so much better.
Google won because, despite the fact they were nowhere near the first search engine, their product was so much better.
The customer need was well understood. I type some words, I get a list of relevant websites.
If you're not first, how do you plan to be so much better that you leave the competition for dead? A bit better won't cut it.
Discovery vs execution
"When I started my business, I spoke to everyone who tried to have a meeting with me. I needed to as it helped me learn so much during a short period" - Jimi Sotimehin.
"When I started my business, I spoke to everyone who tried to have a meeting with me. I needed to as it helped me learn so much during a short period" - Jimi Sotimehin.
When you are in discovery, take every meeting.
When you are in execution, guard your diary fiercely.
Overcrowded markets
The most common problem with a startup idea? Too many other companies doing something very similar.
The most common problem with a startup idea? Too many other companies doing something very similar.
It is difficult to win at scale if there are many people hitting the same problem.
If you are doing something different:
- is it enough for you to win?
- is it just a nice to have?
- is the reason your 'different' hasn't been done that the others saw a flaw in it?
You can win in a highly competitive market but the bar is that much higher.
Good and bad meetings
Founders, what meetings do you take that you think aren't the best use of your time?
Founders, what meetings do you take that you think aren't the best use of your time?
What ones haven't you taken that you wish you had?
Self faith
Sometimes, I don't know but I'm going to figure it out is the best answer.
Sometimes, I don't know but I'm going to figure it out is the best answer.
Your investors need to have faith that you can solve the problems that are coming.
So do you.
When they need you
Investors, be there when founders need you. Not when you want them to need you.
Investors, be there when founders need you. Not when you want them to need you.
Not yet
Reasons not to transition from founder-led sales:
Reasons not to transition from founder-led sales:
1. You didn't nail your sales playbook:
Sales hires are typically much better at executing on a playbook than developing one.
2. You don't have product market fit:
If you are selling, you can stay close to the customer, understand their needs, and where your product is and isn't meeting those. Once you transfer that, it is in the hands of someone with different incentives.
What else?
Charge more
If you've never lost a deal on price, you're not charging enough.
If you've never lost a deal on price, you're not charging enough.
Hiring and investing
Hiring, like investing, is hard. You have to say no to almost everyone.
Hiring, like investing, is hard. You have to say no to almost everyone.
There's a right way and a wrong way to do this.