STARTUPS - shortcuts

(Weekly updated database of links I send to B2B founders)

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<aside> 💡 “Startups are not a thinking game, they are a doing game. If you don't have good startup ideas now, the way to get better ones isn't to think really hard - it's to build stuff and launch it and learn from what happens.”

</aside>

MARKET

Market_Sizing_Guide_For_Aspiring_Venture_Capitalists_1730454912.pdf

https://pmarchive.com/guide_to_startups_part4.html

https://a16z.com/2017/02/18/12-things-about-product-market-fit-2/

https://www.nfx.com/post/find-the-fast-moving-water

https://www.mostlymetrics.com/p/a-total-addressable-market-masterclass

https://www.julian.com/guide/startup/market-pull

https://www.youtube.com/watch?v=3Fx5Q8xGU8k&ab_channel=YCombinator

PITCH DECK

For me, a pitch deck is a flyer. You give it away to build interest. It should spark questions VC wants to talk about.

Seed Round Pitch Deck Template. ALL TEMPLATE SLIDES. .pdf

https://www.slideshare.net/PitchDeckCoach/sequoia-capital-pitchdecktemplate

https://three.vc/blog/what-to-include-in-a-pitch-deck/

https://www.ycombinator.com/library/2u-how-to-build-your-seed-round-pitch-deck

https://techcrunch.com/2021/11/16/5-critical-pitch-deck-slides-most-founders-get-wrong/?guccounter=1

https://theventurecrew.substack.com/p/the-one-slide-most-founders-get-wrong?utm_source=post-email-title&publication_id=1555984&post_id=142754117&utm_campaign=email-post-title&isFreemail=true&r=i1rv&triedRedirect=true&utm_medium=email

Pavlina's prez on prezs

BUSINESS PLAN

Don’t overthink it - BP is an intro to the discussion “Does this person understand how the world works?”

Why a startup’s initial business plan doesn’t matter that much

Financial plan model template

https://docs.google.com/spreadsheets/d/1Yg1wnsrkBBkUlrZYhipV8DuHlfLgiXZvtSeqtNfN2Ac/edit?gid=973877521#gid=973877521

Whatever you create, do it MoM, don’t experiment with QoQ or YoY.

PMF

https://www.growthunhinged.com/p/the-emerging-startup-playbook

https://review.firstround.com/how-superhuman-built-an-engine-to-find-product-market-fit/

FUNDRAISING

It’s like dating - don't expect a ring after the first date.

If you’re unsure how helpful and trustworthy the investor is, talk to the existing portfolio startups.

At least 70 % of the VC’s decision-making isn’t connected to you or your startup. Don’t overestimate the value of “no”. It’s like in any other sales - you can’t control everything happening on the other side.

A shitload of startups got a term sheet in their first meeting with a VC. Some didn’t even have a prez. If it’s not happening to you, it means that you (like 99 % of other startups) don’t have a super-stellar idea, product, or market. It means that you HAVE TO WORK HARDER to get the money to offset gaps in a way you’re selling your startup to VCs. Don’t underestimate your role in the process - it’s about you and your ability to sell the startup to investors.

No VCs want to invest in SW development ⇒ every VC wants to invest in scaling up the sales.

⇒ VCs rarely invest in complexity - they want to invest in a clear way to scale up the money machine.

You’re always selling your startup to one of the partners. Get to know him, build a relationship, and equip him with everything he needs to sell your startup internally.

Some funds have a strategy for portfolio building, and others don’t. Get at least some understanding of what startups the fund is looking for and in what phase of their investment period they are (if the money is running out, etc…).

Suppose the seed stage fund wants to make 4x money in 8 years (”above industry average”) on a portfolio of 30 investments, betting that at least one will return the fund and do the multiples. In that case, he is looking for a startup that 120x its valuation in 6-7 years. From 8M at the seed to 1000M at the exit. Are YOU one of those startups?

How many investors should you talk to

https://docsend.com/view/2ihphaisjsq2tbxr

Communication protocol for talking to investors

INVESTORS AND THEIR MINDSET

The point of a pre-seed round is to go to market

The point of a Seed round is to prove the initial product-market fit

The point of a Series A is to build out an awesome 1.0 management team

I want to explain why venture capitalists give 21 year olds $30,000,000 to pursue startup ideas.

Investor - After 18 Months, Your Investment Probably Isn’t Getting Marked Up

Warm intros are mostly useless

Be Too Busy to ‘Do Coffee’

Angel Investment Value Calculator