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No Is an Acronym

No Is an Acronym

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Image by Gordon Johnson from Pixabay

We’ve covered this subject before, and here’s a reminder – with other points added, and updates, since certain of the investors mentioned did change funds. Or started new ones. So, once more with feeling…

When you were a kid how many times did your parents say No! N-O, NO! More than once, we’d wager. How many times did they say, Yes, Y-E-S, YES!’ Bet I can count the number of times on one hand – zero. Never happened.

We did notice this at a fairly young age – long before we knew that there was such a word – that NO is an acronym. It was parent-code for ‘keep trying’ or ‘change the talking points.’ In some cases, we found that if we changed our approach or arguments, we could get a yes. Persistence pays. And the same can be said of investors. Investors hate to miss opportunities, so they don’t really like to say No. Investors like to hedge their bets and keep their options open. Sometimes they will give you a hard and fast No and mean it. Still, that said, things change, so one never knows if it truly is a hard No. Read More...

What Do Quicky Vegas Weddings and VC Funding Have in Common?

What Do Quicky Vegas Weddings and VC Funding Have in Common?

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Image by Dariusz Sankowski from Pixabay

Back in 2010, Mark Suster penned a blog post entitled Invest in Lines, Not Dots and like many investors, Suster has sat on both sides of the table. It a must read for entrepreneurs, especially if you plan on raising money from investors, now or any time in the not-too-distant future, or ever. It’s also a great explanation of the importance of establishing relationships with investors before you need the money – and gives you something of an idea of a good investor’s mindset.

Why can’t investors simply understand what a monster company you’re building and just write the bloody check?

As Suster points out, “We want to make sure we’re in love. This sometimes frustrates entrepreneurs who just want to “get back to running the business.” But if you understand it you’ll see that it is perfectly rational and it should also influence how you form relationships with investors. And remember, if we get married you’re stuck with us, too.” Read More...

The Founder Test: Do You Have What It Takes?

The Founder Test: Do You Have What It Takes?

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We all know the statistics: most startups fail for various reasons, primarily because they run out of money, or didn’t raise enough – or any. There is another factor to consider: do you have what it takes to be a founder of a company? There’s a lot of advice out there on the slides you need in your deck and why startups fail, but what about some basic skills you need to be a founder? We do know that many founders of very successful companies are psychopaths – do try to avoid going that route – and that aside, here are some things you need to consider: Read More...

W-A-T-E-R

W-A-T-E-R

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Image by congerdesign @Pixabay

It took ‘Miracle Worker’ and teacher Anne Sullivan a long time and a lot of effort to get through to a blind and deaf young Helen Keller. An exasperated Sullivan finally did succeed. The first word that made an impact and succeeded in helping the girl to understand the relationship between words and everything in her world was ‘water.’

With all due respect, it’s more or less the same with many first-time entrepreneurs when it comes to constructing their investor pitch decks and/or pitching. So, we’re going to spell it out for you.

We know you know the information that needs to be included, in no particular order: problem, solution, differentiators, market size – total addressable market (TAM), sample addressable market (SAM), sample obtainable market (SOM), go to market strategy, traction/partnerships, competitors, financials, team et al. 12-15 slides. Done. Read More...

The Startup Methodology, Sung to the Tune of…

The Startup Methodology, Sung to the Tune of…

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Jimmy Chamberlin, founder and drummer for The Smashing Pumpkins, spoke at a recent StartupOneStop investor breakfast. Besides being a rock star, he is also not only an investor, but a tech company founder as well. It was interesting to get the perspective of someone who is involved in technology – and who has a very successful career outside of the industry.

As he was describing the process of songwriting, it struck us that those rules do apply to startups as well, whether you’re working on an investor deck, or your business plan. And note: whether you’re looking for investment or not, always important to have a business plan when you’re starting a business. We paraphrase:

You have to have a story to tell – and believe in it Read More...

Summer Reading: Lessons from the Pros

Summer Reading: Lessons from the Pros

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We’re full on into summer, when people kick back a bit and even take some time to read. If you’re looking for recommendation and are in the midst of raising capital or plan to very soon, one our readers have suggested Foundry Group founder and Techstars co-founder Brad Feld’s Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist. As well as former New York Angels Chairman and NY Venture Partners founder Brian Cohen’s What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea. Finally, there’s angel investor Jason Calacanis’s Angel: How to Invest in Technology Startups–Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000, and as one reviewer noted: Should have titled this book: ‘The ABC Angel: Arrogant, Brilliant, and Confident!’ Then again, for those of us who know him well, that’s Jason, what, eh?

 

Feld also offers a free Venture Deals course that “demystifies venture capital deals and startup financing to give both first-time and experienced entrepreneurs a definitive guide to secure funding.” Sign up and make sure that you’re notified as to when the next session is starting, which will most likely be Fall. Read More...

Why We Need to Stop Calling NewCos Startups

Why We Need to Stop Calling NewCos Startups

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In case you haven’t notice, the lockdowns have led to an uptick in entrepreneurship and as many newly-minted founders are discovering, starting a business is easy. Building one, not so much. Instead of ‘startups,’ we prefer to call them ‘newcos,’ as you’re building a new company, and a company is about doing business. Startup? You start up a car, you’re off to the races. Or to the grocery store or wherever, provided that you’ve maintained the car, it’s charged or filled with gas, etc. Eventually you will have to get it serviced, and if something goes wrong, you call in a specialist. In tech, they’re called mentors/advisors/consultants. Like the mechanic, they do expect to be compensated for their time and expertise. Like a mechanic, they may do a free assessment. But if you need some work done, well, you have to pay them. Otherwise your vehicle won’t…startup.

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Eco-Friendly? Sustainable? Things that Make You Go ‘Hmmm.’

Eco-Friendly? Sustainable? Things that Make You Go ‘Hmmm.’

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And thank you, C+C Music Factory.

‘Sustainable,’ ‘circular economy,’ and ‘environmentally conscious’ are definitely practically de rigueur among entrepreneurs these days and we are totally on the same page. In fact, we’ve been composting for years. But are products et al that people call sustainable, truly sustainable – or eco friendly. There are just a few points/examples of things that make you go hmmm that we’d like to share as a sort of nudge to you, and/or to provoke something of a head-scratching moment. Pay attention: science can sometimes be something of a shifting target:

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Everything You Need to Know About the Investor Dog Whistle

Everything You Need to Know About the Investor Dog Whistle

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Image by Gerd Altmann from Pixabay

Basic to every startup/newco is having a pitch deck. An executive summaries as well, and while you know this, we wonder if we have pitch decks all wrong. Or if you believe that there’s a set order of slides to which you must strictly adhere.

Wrong.

Charlie O’Donnell of Brooklyn Bridge Ventures’ somewhat unofficial mantra is ‘Always Be Selling’ and truth be told, no matter what your official title is in your startup/newco, you’re doing sales. Especially in a lean company: unless you’re in a completely non-public facing role, you’re a salesperson for your company, which brings us to your investor presentation, your deck and everything in between. Read More...

The Pitch Deck: What Investors Are Really Looking For

The Pitch Deck: What Investors Are Really Looking For

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Image by Gerd Altmann from Pixabay

It’s been a while since we discussed pitch decks, and it seems that it may be time for a refresher course/reminder.

We all know that there are a few points to cover. Again, in no particular order:

  1. Vision and Value
  2. Problem
  3. Market/Opportunity
  4. Solution
  5. Business/Revenue Model
  6. Competiton
  7. Traction/Road Map to Traction (aka Go To Market Strategy)
  8. Marketing and Sales Strategy
  9. Team
  10. Financial
  11. Ask/Use of Funds

If this is the latest project from a team of very successful serial entrepreneurs, you’re going to move that ‘team’ slide up. Investors want to know that if this startup’s founders are, say, Larry Page and Sergey Brin. Read More...