Thoughts on Tech Startups and Venture Capital
I’ve written many posts on this blog talking about how to raise a seed round. The main characteristic most seed rounds is that they are based on the strength of the founding team, and, a lot of times, CEO’s ability to present a compelling vision of the future for investors. While sometimes seed companies have…
I’ve been to a lot of emerging cities that don’t have the kind of $ that San Francisco and New York have. My experience has been that these are vibrant and growing ecosystems that are continuing to birth exciting startups and innovation. Occasionally, I would hear a sentiment that we don’t have enough capital in…
Read more Complete Guide to Raising Capital in Emerging Cities
Due diligence is yet another one of those confusing, and opaque things in venture. When VCs say they are going to do the diligence, the founders don’t really know what to expect. The process varies from firm to firm. Typically, most of the due diligence is done by so-called Lead Investor. The Lead Investor conducts…
Read more 6 Things Founders Should Expect During Venture Due Diligence
Investors say no to founders for many reasons. Founders typically hear that they are too early, there is not enough traction, the market is either too small or too competitive. What investors rarely or never say to founders is that they don’t like them as people, or don’t believe in them as entrepreneurs. investors do…
Read more 9 Personal and Painful Reasons why Founders do not get the investment
Often times, when founders are starting to raise capital they ask me what will the likely price be. I tell them this an irrelevant question, and they get very surprised. But Alex, they say, pre-money valuation is so important to me – I want to get the best price ? While this is indeed an…
Read more Founders, do not worry about the price, worry about having leverage
We are headed into the holiday season. For founders who are fundraising, this is typically a particularly stressful time. It is certainly true that some investors slow down their activities during the holidays. That said, there are patterns and specifics for each type of investor. Also, end of year can actually be a great time…
These days, startup founders spend a lot of time thinking about how to pitch investors. The problem is not simple—investors get pitched a lot, and most startups are either too early or don’t think that making their pitch stand out really matters. The problem is that most founders just pitch with words. The founders spend time…
Read more Why PRODUCT DEMO is a secret weapon of every single startup
We’ve talked a lot here about raising seed capital. Even when capital is readily available, fundraising is still not easy. But today, the markets are cooler, and according to Crain’s and Alley Watch, early-stage investment activity in 2016 in NYC is down compared to 2015. We’ve written about the slowdown back in August of 2015. Lack…
When founders get connected to investors, they are often asked to send the deck ahead of the meeting. We’ve written here why sending the decks, especially before the first meeting, is generally not a good idea. Startup founders cannot be defined by their decks. The main issue with a pitch deck is that it is…
Read more Let’s face it, it’s time to upgrade the Pitch Deck to a Pitch Video
Last week we wrote about questions that investors ask founders during investor meetings. This week we are turning the tables and talking about questions that founders need to ask investors. Most founders spend little time asking investors questions, and that’s too bad. First of all, good investors love it when you ask them questions, because it…
Read more 11 Questions Founders Need to Ask Investors During the First Meeting
