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Founders tips - Issue #50

Fight to get A grade investors. Raising money takes time, it can be a distraction from the daily oper
Founders tips - Issue #50
By Id4 ventures • Issue #50 • View online
Fight to get A grade investors.
Raising money takes time, it can be a distraction from the daily operations. Especially at an early stage where fundraising seems more difficult ( Tip: it’s difficult at every stage…), entrepreneurs tend to have as primary objective to raise fast and go back to business.
We have been there, we know the temptation to grab the first check handed to you and go back to work.
But taking uneducated money (No tech Angel investor, Angels who didn’t really understand the challenge of the business, my worst case: no tech angel who wants to be hands-on, etc.) comes at a cost. The time you have saved taking the first check, you will most probably lose up 100 times this time in useless or worth in confrontational discussions during the lifespan of your venture. Fred Destin has clearly described the disadvantage of having B or C Investors(article below).
Our opinion is you should view early stage fundraising differently, the objective is not only to get cash in fast, but also.
1) An occasion to have great interactions with A Grade Angel or seed investors. It will force you to better define your business, your market, your product.
2) Early stage investors have great connections with later stage VCs. They are a good source of the pipeline.
3) If they consider an investment, they will ask the tough questions that will help you make progress.
The bottom line, it’s an important part of the journey, not a task that should be closed quickly. The key is to raise smart not fast.
Enjoy your week.

We have listed on medium the past tips we shared

Choose your investors..
About that valuation vs. bad VC tradeoff… – Fred Destin – Medium
Does valuation matter at early stages? – Id4 ventures – Medium
A better you
Knowing when to say yes, when to say no -
A better company
How to discourage bullshit and make better decisions, according to psychology — Quartz at Work
Improve your tech
AI winter is well on its way – Piekniewski's blog
Understand better VCs
Why Financial Statements Don’t Work for Digital Companies
Tweet of the week
Bilal Zuberi
It is very hard to cut back on burn once already increased. Best is to not let your monthly burn out of control in the first place. EVERY month matters a LOT for early stage companies. And higher the burn, fewer your options to pivot, reposition, reformulate an attack.
11:09 PM - 1 Jun 2018
The big read of the week end
Spotify — Europe’s first real Aircraft Carrier – Creandum Family
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Id4 ventures

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