10X Rule for Startups
10X rule your Startup Today, we’ll talk about the 10X rule for Startups. For startups to displace an incumbent, the offer needs to be 10X better than the current alternatives. So often, startups go to market promising their customer an ROI of 10, 20, or 30% better. Unfortunately, that’s not…
How to Achieve an Exit
If they don’t define the exit, then you define the exit. Today, we’ll talk about how to achieve an exit in a startup investment. It’s easy to get into a startup investment, but difficult to get out- especially with a positive return. Most startup exits come when they sell the…
Should You Invest in a Startup Fund
Should You Invest in a Startup Fund Choose broad or narrow investing to meet your goals Today, we’ll talk about investing in a fund and choosing between a narrow or broad investment thesis. When does a fund make more sense than direct investments? A fund works best when you are…
Should You Invest in Startups
Figure out what you want to invest in then look for resources to help Today, we’ll talk about investing in startups Should you invest in startups? Startups are very risky and it’s a lot harder than it looks. If you have already invested in mutual funds, index funds, stocks, bonds,…
Know Your Metrics
Use Metrics to show your progress Today, we’ll talk about knowing your metrics Investors look for the metrics in your business so it’s important to know them. There are three levels of metrics you can use: Activity metrics show the basic activity of the business Unit economic metrics show the…
What to Build First
Six months to build it and six months to sell it. Today, we’ll talk about what to build first in your startup. Some startups suffer from what I call the “Vision Problem”. They have a vision in their mind about what the product/service should look like AND they have to…
The Growth Story
Show the system behind your goals Today, we’ll talk about establishing a growth story for your startup Investors fund deals based on the team, the market, or the technology. While these are popular investment thesis, the investment decision often comes down to what I call “the Growth Story”. This is…
Product and Market Validation
Validation — the Product Works and People will Pay for It Today, we’ll talk about demonstrating product and market validation In talking with startup investors the first two questions that come up are Product validation and Market Validation. The product works and someone will buy it. Investors look for evidence…
Raising Funding From Family and Friends
For family and friends funding — no one is getting paid back. Today, we’ll talk about raising funding from family and friends. Many startups launch their business with family and friends funding. Some entrepreneurs are often reluctant to take money from their family because — well Thanksgiving turkey tastes different…
Know Who is Going to Pay for Product Development
Find customers to pay for the product before you build it Today, we’ll talk about product development for startups. In growing your business you must prioritize what products you develop. In developing a new product it’s helpful to ask ‘who is going to pay for it’ before you spend money…
Finding a Lead Investor
Look for the right investor to lead your deal, not just the first investor Today, we’ll talk about finding a lead investor for your deal. I’m often approached by a startup who has several investors interested in their deal but no one wants to lead it. This is not surprising…
Use the Rule of 4 to Value Your Startup
Today, we’ll talk about how to value your startup. Since startups don’t have significant revenue then how do you value your startup when fundraising? Traditional tools such as discounted cash flow, book value, and other standard accounting techniques don’t work for early stage companies. For startup valuations we use the…
What Documents do you Need for your Fundraise?
Today, we’ll talk about the documents you need for your fundraise. The pitch deck, the terms sheet, and the projections The first document is the pitch deck.This is usually ten to fifteen slides introducing your deal to the prospective investor. It should cover the basics of the business including the…
The Investor Types for your Startup
Today, we’ll talk about the different type of investors you will find in the startup world. There are four type of investors for your startup — Venture Capital, Angel Investors, Family Offices and High Networth Individuals. There are lenders who provide debt financing but that’s a topic for another day….
Deal Structures
Today, we’ll talk about the deal structure you should use for your fundraise. There’s equity, and then there are convertible notes and SAFE notes. If you want a straight loan, then you should use a promissory note. Equity agreements set the valuation for the company and various terms of governance,…
Should you Raise Funding?
Today, we’ll talk about should you raise funding and if so, how much should you seek. – Funding accelerates what you already have going in your business today. You should have a core process for acquiring customers and providing a service. If you don’t have it then funding at this…
