Learn to Speak With Investors
The venture world has its own specialized vocabulary. If you want investment, you have to speak with investors on their own language. Be sure to understand the following words and concepts.
The #1 Problem With Your Pitch Deck
What’s the biggest problem with your pitch deck? TMI. Don’t overwhelm investors with information. Tell them a story that will get them excited about the investment.
The Critical Difference Between Shark Tank and Venture Capital
Shark Tank gives founders false expectations for how venture works. The sharks aren’t venture capitalists or angels, they’re operators. Understand the difference and what each type of investor wants.
For Startups, Customer Satisfaction is Job #1
The customer is the CEO’s responsibility. Customers are the only reason for a business to exist. Assuring customer satisfaction is the most important job of the CEO.
Be #1 in Your Market
Don’t plan to take a tiny share of a huge market, but become the leader in a smaller but substantial market.
We Need to Talk About Those 50% Profit Margins
Those projections of 50%+ profit margins in your pitch deck are pure fiction. Running a $100M business has a lot more costs than you’re calculating.
What’s Your Exit Strategy?
What do investors care about most? Your vision? Your team? Nope. The only thing that matters is your exit strategy, because the only way investors make money is from your exit.
The Real Reason You Won’t Get Feedback from VCs on Your Pitch
After sending a pitch deck to VCs, it’s frustrating that you get no response at all. Here’s the reason why.
How Much Should Startups Pay Their Advisors?
A breakdown of the factors to determine how much equity to pay your startup’s advisors.
Why Angels Are Not the Answer for Startups That Can’t Get VC Funding
The economics of angel investing are the same as for VCs. If your startup doesn’t fit the VC ideal, angels aren’t the answer.
7 Ways to Fund Your Startup Without Venture Capital
7 sources of funding to build your startup that don’t require venture capital’s impossible promises of exponential growth and billion dollar exits
Please Don’t Take Venture Capital
Please reconsider your plans to fund your business with venture capital. For startups that aren’t moonshots, venture capital is a one-way ticket to failure. Other ways of funding a business have a much higher chance of success.
Should You Send Your Pitch Deck by PDF or Link?
Should you send your pitchdeck to investors as a PDF or a link? This seemingly minor detail can make or break your raise.
Agents and Consultants Can’t Help With Startup Fundraising
Plenty of people will offer to help raise funds through the network for a cut of the deal. Unfortunately, SEC regulations make that illegal without a broker’s license.
Why Your Startup Needs to be a C-Corp
If you’re setting up a startup and looking for investors, make sure it’s a C-corp. LLCs are non-starters for investors. Here’s why.
Are VCs Pushing You to Raise Funding to Meet Their Own Metrics?
Are you being pushed to raise a fresh round by your VC investors? Perhaps that’s for their own benefit rather than yours.
5 Things Investors Require in a Startup
These 5 things separate the 2% of the startups my angel groups invest in from the 98% we pass.
Why Investors are Wary of Husband and Wife Startup Founders
There’s nothing as romantic as a wedding. There’s also nothing that turns off potential investors as fast as a wedded couple. Here’s why, and how to attract investors anyway if you’re a husband and wife founder team.
The 5 Critical Mistakes of Startup Founders
Here are the 5 most common mistakes founders need to avoid if they want to be successful.
Understanding Newton’s First Law of Startup Investing
At demo day, dozens of investors will say they’re interested. 90% of them will ghost you. Avoid the false euphoria and begin the work of finding the ones that are truly interested.
For a Great Product, Get Your Devs in Front of Customers
If you want products that fit actual customer needs rather put your developers in front of customers no matter how much they hate it.
Is Your Startup Linear or Exponential?
Services make for good businesses. But investors always pass. Here’s why. And what to do about it.
Founders: Your Self-Worth Should Not Be Defined by How Much Funding You’ve Raised
Don’t get caught up in proving your success based on valuation and funding amounts. The only thing that matters is how much value you’re creating.
Developing a Platform Technology? Here’s What You Need to Do.
You’ve developed a core technology with many different uses. Each application is a huge opportunity but investors aren’t excited. Here’s how to build a platform technology startup.
What is an SPV and When Do You Need One?
The SPV is an important part of startup investments, especially at the early stages, aggregating many small investors into a single investment. Here’s what founders and investors need to know about SPVs.
How Long Does It Take to Raise a Funding Round?
How long will it take to raise an investment round? Plan on at least 6-8 months.
Why Investors Don’t Want Common Shares
Founders, employees, and advisors get common shares in a startup. Investors demand preferred shares. Here’s what they are and why investors require them.
No You Haven’t Found Product-Market Fit
Until you’ve reach revenues of $1M, you don’t have product market fit. The product is still an experiment in search of users.
Investor Dataroom Checklist—What to Include
What do you need in your investor dataroom? Here’s a handy list.
The 3 Types of Mentors Every Startup Needs – And 3 Other Kinds to Avoid
Every startup needs mentors and advisors. These are the 3 types that can help in different ways. But not all are useful. Here are the 3 types to avoid.
Solving the Startup Chicken & Egg Funding Conundrum
You need money to build the product. Investors don’t want to invest until the product is proven. It’s a classic chicken-and-egg problem. So how do you crack that egg?
The Critical Difference Between Pre- and Post-Money Valuations
Understand the critical difference between pre- and post-money valuations and why investors will only accept post-money SAFEs.
Are 4 Markets Better Than 1?
A single-minded focused on the strongest opportunity is the best chance for success.
Why You Need a Lead Investor for Your Funding Round
What is a lead investor and why are they so important? Who is an acceptable lead investor and how do you find one?
Understanding Venture Math
It’s impossible to understand what venture firms invest in without understanding how their numbers work.
“Countdown to Decryption” by DC Palter
Hello followers of Pitching Angels. I hope you’ve found my articles on startups and venture capital helpful. I’m thrilled to announce that my mystery novel, Countdown to Decryption, was published today! If you enjoy my writing and my insights into Silicon Valley, I hope you’ll read my novel. If you enjoy it (and I promise…
How to Nail the Elevator Pitch
The elevator pitch isn’t just an exercise — it’s your introduction. Here’s how to nail it and hook investors.
How to Reach Out to Early-Stage Investors
Most investor reach out gets no response. Here’s how to do it right and get attention from investors.
What Stage Founder Are You?
To succeed as CEOs, we have to take advantage of our strengths and be honest about our weaknesses. And eventually, we may have to step aside and let our creation grow without us.
7 Things Experienced Founders Know that 1st Time Founders Miss
The 7 pitfalls that trip up first-time founders that experienced founders know to anticipate and evade.
How to Get Investors Excited About Your Market Opportunity
What you need to know about market sizing and how to provide the information investors are looking for in your pitch.
How to Make Corporate Venture Capital the Solution to Your Funding Needs
Corporate Venture Capital can be an important source of funding that offers unique advantages. Understand the benefits of CVC investments and the complications.
The Changing Focus of Venture Capital Funding
The dominance of software has recently waned among angel investors with life sciences accounting for more than half of our investments.
10 Takeaways for Angel Investing Success
I’ve invested in over 100 startups. Here’s what I’ve learned about what works in angel investing and what doesn’t
How Big is the Market for Your Product?
Understanding market sizing and how to present it to investors.
The Myth of Warm Introductions
A warm intro might get you a connection, but won’t help much in landing an investment. Here’s what to do instead.
Why You Should Embrace the Post-Money SAFE and Avoid the Pre-Money SAFE
The post-money SAFE is the best vehicle for investing in early-stage startups, while the original pre-money SAFE is a non-starter. Here’s why.
How Much Money Can a Startup Raise from Investors?
How much capital can you can realistically raise at each stage?
5 Tips for Startup Sales Success From the World’s Worst Salesperson™
At the early stages, it’s up to the founders to do the sales. Here’s my tips on how to be successful at sales without being a good salesperson.
The 5 Reasons You Should Become a Startup Founder
Here’s the 5 reasons why you’d be a great startup founder, and the biggest reason many people want to be founder who shouldn’t.
How to Pitch to Angels—Your Early Investors
Angels are the first investors in most startups. Understand who we are and what we’re looking in this article.
Why Do Venture Funds All Chase After the Same Startups?
Understanding VC groupthink and how to use it to your advantage Apologies to my many VC friends. I don’t mean to insult or disparage you in any way. You’re all not only brilliant, creative, and successful individuals, but caring and generous people (well, most of you.) The reason venture funds chase after startups in the…
5 Keys to Marketing to Consumers on a Budget
The 5 keys to crafting an effective consumer marketing strategy.
Pre-Seed Valuations Are Down 1/3 Since Last Year
5 key takeaways from a Carta report on 2Q2023 valuations and funding of pre-seed/seed startups
How to Fund Your Startup in a Tough Venture Environment
Here’s how to raise early stage funding for your startup in the difficult current venture environment.
How to Pitch Like a Pro, Even if You Aren’t
Amateurs pitch that their startup will succeed; professionals show how their startup cannot possibly fail.
Is Your Startup a Good Fit for Venture Capital?
Make sure your startup meets these 5 criteria VCs look for before spending months pitching them for funding..
How to Negotiate a Startup Valuation
When you pitch to investors, you need to specify the valuation. But how do you negotiate a suitable valuation?
The Startup Business Plan: How Will You Reach $100M in Revenue?
Startups need to show how they’ll reach $100M in revenues to be suitable for venture investment. Thinking through how to hit that critical metric provides a framework for difficult decisions.
How Will You Reach Millions of Customers?
Go-to-market means getting a product into $100M of customers a year. How are you going to do that?
Your Pitch Deck Has 1 Minute to Sell Me
When I open a pitch deck, I scan it for a minute. Or less. Here’s how to grab my attention.
The 3 Legs of a Startup Pitch That Leaves Investors Begging For More
The pitch consists of 3 legs: the product, the growth plan, and the investment. Be sure to cover all 3.
Why Startups Need Both a Builder and a Visionary
What a startup needs besides a great idea is perfect execution. That’s why in addition to a visionary, a startup needs a “builder.”
What a Cupholder Says About Competing with Giants
It can be difficult to take on giants head-on. But the giants also can be incredibly myopic. Here’s how to beat them.
Why Startups Need a Lead Investor
There’s a lot of work required to be the lead investor, from negotiating the terms to doing a review of the company to serving on the board. Find a good lead investor first and other investors will be comfortable following on.
What a Waffle Says About Competition
Having a better product isn’t always enough, especially if there’s an industry giant that can make something customers find good enough.
Why is HardTech so Effing Hard?
If there’s one overriding reason why almost no hardtech startups have become unicorns, it’s this: building a hardtech startup is really effing hard.
The First Money is the Most Expensive Money
The most frequent question from founders preparing for their first raise is: how much should we raise? The answer: as little as possible.
Startups — Throw Away Your Customer Slides
The most common mistake founders make is adapting their customer presentation into an investor pitch deck. But you need to start fresh for a different audience.
Everything Startups Need to Know About Convertible Notes
The convertible note is a shortcut for startups that aren’t ready to bite off on issuing preferred stock. It’s more flexible than a SAFE, but there are many details to understand to avoid making critical mistakes.
Everything Startups Need to Know About the SAFE Agreement
The SAFE agreement is the best structure for an early-stage investment. Here is everything you need to know about it.
Should You Join a Startup Accelerator?
There are hundreds of accelerators claiming to help startups get off the ground. Should you join one?
Why I Hate Liquidation Preferences
Liquidation preferences seem like a minor detail on the term sheet, but other than the valuation, they’re the most important term. Founders need to understand what they’re agreeing to.
Surviving Advisor Whiplash
As you work with mentors, you’ll get a lot of great advice, but some will be contradictory or useless. Here’s how to avoid advisor whiplash.
Why Every Startup Founder Needs to Study This One Book
Accounting isn’t just a tool for paying bills – it’s the process of analyzing the health of a business, and every founder needs to understand it.
The Key to Becoming a Successful Startup Founder
Want to build a startup but haven’t done it before? The best way to get started is to join a funded startup as an early employee.
Why Every Startup Needs a Lawyer From the Start
Every startup needs a lawyer. Right away. From day 1. And not just any lawyer but a lawyer who specializes in venture-funded startups. You’ll save yourself a whole lot of aggravation and wasted time.
Sorry, Startups — Investors Won’t Sign Your NDA
Venture investors won’t sign NDAs. Here’s why, and how to work around it.
How to Turn Customer Support Into a Company’s Profit Center
Being a startup is difficult. But startups have one advantage that makes all the difference — we care. And great customer support is how we prove it.
Why Using an Agent for Fundraising Is a Deal Killer for Startups
Investors avoid investing in startups that are using agents to look for funding.
Is Project Finance the Way to Fund Your Startup?
Venture capital is not the only way to build a startup. When the business involves hard assets that generate profits, project finance may make more sense.
Why Pitch Deck Design Matters
Pitch deck design matters. It’s a critical signal for the quality and professionalism of the startup. So spend time and even money making it attractive and easy to follow.
The Best Startups Begin with a Desperate Need to Solve a Problem
The most successful startups begin with a founder with a desperate need to solve a particular problem.
How to Raise a Pre-Pre-Seed Round
Need to raise funding for your startup, but are still pre-revenue? Angel investors will say you’re too early for them. Welcome to the “pre-pre-seed round”
Why the CEO of a Startup Needs to be a Marketing Expert
This is why the CEO of most startups should be a marketing specialist.
8 Traits of Successful Startup Founders
Everyone wants to be a startup founder. But not everyone is cut out for the life. Here are the 8 traits of successful founders.
Why VCs Hunt for Startups With the Potential for 100x Returns
Venture investors have a reputation as greedy bastards preying on poor startups. But venture investors are looking to make money investing in the high-risk, illiquid stock of early-stage startups. The numbers only work with a big exits of 100x or more.
The Killer J-Curve
For early-stage startup investing, the J-curve is a killer. The failures fail quickly while the successes can take a decade to show any return.
The Highest Valuation Isn’t Always the Best Valuation for a Startup
Higher valuations are generally wonderful. But if the valuation is too high, it can kill the company in later rounds. Here’s how to find the best valuation for a hot startup without getting overvalued.
Why I Only Invest in US-Based Startups – And What to Do If Your Startup is Located Outside the US
As a US taxpayer, investing in corporations outside the US is difficult. Here are the 3 reasons why, and what you can do about it.
How to Get Funded by Angel Groups
Angel investment groups are the biggest source of funding for startups at the pre-seed/seed stage. groups operate and think of them as an early-stage VC. Founders who understand how angel groups operate are far more successful at raising funding.
How Do You Calculate the Valuation of Your Startup?
What is the valuation of a startup? It’s the amount investors are willing to pay. It’s best to think of company valuation more like an auction than the purchase of public stock.
How to Hook Investors From the Start
A pitch begins with a description of the problem and solution. You either hook the audience immediately or leave them lost from the beginning.
The 11 Slides of a Perfect Pitch Deck
The pitch deck provides investors with a summary of your business. It needs to be comprehensive while succinct and tell a cohesive story.
Why It’s Better to be a Leader in a Niche Market Than a Small Player in a Huge Market
Here’s why dominating a niche is a better business plan than targeting a small sliver of a huge market.
When is the Time to Quit Our Job and Go All-In on Our Startup?
When is the right time to go full-time on a startup? There’s no right answer for everyone, but here’s how I made my own decision.
6 Ways to Get Past “You’re Too Early” Rejections
The biggest challenge for startups is the earliest stage. Here’s how to find funding in the earliest stages before you’re ready for a seed round.
9 Marketing Hacks to Grow Your Business On a Budget
Creating a great product is only half the battle. Now you need to market it so customers can find it. Early-stage startups don’t have much money to spend. Here is how to build a startup on a tiny budget.
10 Ways to Fund Your Bootstrap Startup
The biggest challenge of bootstrapping a startup is funding. Here are 10 sources of funding to make launching your startup possible.
6 Reasons to Bootstrap Your Startup Instead of Taking Venture Capital
But before starting down the path of raising venture capital, startups should consider the possibility of bootstrapping instead.
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