Sad reality: 50% of the founders are starting companies just to get into Y Combinator.
They are looking for their next high status gig.
They think of YC as a resume builder.
So they think of ideas with the lens of getting into YC and raising VC rather than solving a problem (that could be a big company).
YC is the best place for founders who are "actually" looking to build a startup, not LARPers.
Pick your investors thoughtfully. They can make or break your company, or you. So grateful to have the best investors I could ever wish for in our corner.
1.3% of funding goes to women-led and founded startups in Africa. When compared to male-led startups, it is significantly low.
Why do we think this happens and how can we balance it out?
Listen to the full conversation with @KeshniMorar here: https://t.co/BVhsYMH1KA
#podcast
My heard from VC LPs this week is 10 soundbites from #UpfrontSummit. Thanks @msuster & @upfrontvc team!
#1 “In Venture, the majority of companies will fail. The majority of firms will fail too.”
#2 “DPI is not a catch all. TVPI is distorted b/c of valuations. What we need to see is demonstrated progress of your investments”
#3 “If you don’t have returns or measurable progress by Fund 3, be prepared to be a zombie fund. You have to prove your original thesis is playing out.”
#4 “There is a temptation in a pitch to talk about the macro - the ‘why now’. Spend more time on illustrating discipline, differentiation and the journey of your portfolio.
#5 “We aren’t just investing in a series of funds - it’s a partnership. Partnerships are built on passion, humility, & intellectual honesty. We need to hear when it’s not working”
#6 “I can’t put enough emphasis on intellectual honesty. Don’t window dress the issues. The truth will come out and it will be worse for you.”
#7 “I’m highly skeptical of anyone that calls themselves an ‘AI fund’.
#8 “We never answer/read cold emails. The only way we source funds is from referral from other LPs”
#9 “If you sell a piece of your GP there is a 99% chance that we are out””
#10 “No LP will say Mega Funds are great. But they can serve a purpose in a portfolio - they are more effective at returning capital faster. “
@RobertMSterling@KDimitratos Why $20? Is this a booking fee? I’m sure you didn’t intend to insult her or be rude, suggesting that’s the worth of her time, skill, experience and value she brings…why not suggest she go flip burgers rather?
I just saw a COO post a consulting calendly link that was $300 for 45 min and no one was hating on him.
But my $400/hour received a backlash from middle aged white men.
Weird. Wonder why or what the difference was.
@KDimitratos I have the same issue! People get offended when you tell them to pick a payment method before they can pick my brain! They suddenly get so sensitive!
Tip 5: Be resilient and learn from rejections. Not every pitch will result in funding, and that's okay. Use feedback to refine your approach and keep improving. Success often comes after overcoming challenges. #Resilience#StartupJourney
Fundraising for your tech startup?
🌐 Here are 5 quick tips to ace the game:
Tip 1: Craft a compelling narrative that highlights the problem you're solving and why your solution is a game-changer. #StartupFunding#TechInnovation"
Tip 4: Diversify your funding sources. Relying solely on one type of funding can be risky. Explore a mix of angel investors, venture capital, and strategic partnerships. #Diversification#FundingStrategies
Tip 3: Build relationships before you need them. Networking is crucial in the startup world. Connect with potential investors, mentors, and industry experts early on. #Networking#StartupSuccess
Tip 2: Know your numbers inside out. Investors want to see a clear understanding of your financials and projections. Be realistic and transparent about your growth strategy. #StartupTips#FinancialWisdom
Patience is key in the funding journey. Founders, instead of demanding expedited processes, let's focus on building businesses that naturally command attention. Success comes to those who embody the excellence they seek. 🚀💼 #FounderMindset#PatiencePaysOff#vc#Funding#startup
When I think about my sales role as a founder, I get an instant tummy ache! But….I have to suck it up and get out there, or my company will NOT survive!
#sales#startups#founder