Harry Stebbings’ Post

$5M In Pre-Seed capital at a $25M validation works when the magnitude of the outcome allows for consolidation of entire markets into a few winners. This is where we are headed with Ai that can span over multiple sectors with a single application.

I've never been the guy in the #fundraising seat. I was always the figure out how to get it done guy. And I did. Like a MF freight train, usually. Have always been obsessively driven, not by financial gains, but possibly more like the musings of author, Paulo Coelho, when he said, "The reward for our work is not what we get, but what we become." I quickly realized at Brown University, that I didn't have the passion to be a doctor. It was more of an expectation since I showed a propensity for science and math. English, Art, and Making stuff, too, but that was just for hobbies, in the Asian immigrant paradigm. I had to hide those interests in other areas. I went to one interview Senior year, for a Lotus Notes clone. While shaving, I accidentally (or maybe intentionally, looking back), shaved a chunk out of my chin. It wouldn't stop bleeding. In the interview, it started dripping all over my pressed white shirt. Needless to say, I didn't get the job. Thank you, god. Now that I've started ONISO, I get to drive. I never really wanted to. I was much more interested in creating built on obsessive curiosity, and refusing to believe the word impossible. In my career, I've done deep dives into so many industries often winning awards, or changing how things were done, simply because I didn't know how things were actually done, at the time. I can honestly say, I did fast fashion before it was a word, and not really happy about that. It is what it is. Part of the driving is fundraising. Was never really interested in that. Usually left it to the people that loved it. I got to do things I loved and was curious about, but it didn't do much for creating wealth, or anything close to it. Wasn't really a motivator. I've always been content with t-shirts, shorts and flip-flops. When I lived in NYC, starting up Rawkus Records, I used to skateboard everywhere to save money, wearing flip-flops. I'd often imagine I was on a longboard, surfing 7th Ave, while thinking about how I was going to pull off the next impossible feat. That experience set the tone for the rest of my life. Now, I'm so nerding out on fundraising. I built a database with my learnings, and with LinkedIn I have incredible access to knowledge and wisdom. With ChatGPT, I have a Consultant Roundtable Rocket in my pocket. So geeking out. What I quickly realized, however, is that I'm not familiar with the jargon. Money slang. For instance, in another post, I didn't know what a RIF was. My music background didn't help. Had to look it up. Then it made sense, cross-referenced against the wealth of experience, I've absorbed over the years of my wide-ranging career. Not only that, I've had the amazing pleasure of meeting great people I can ask for real-world advice, to balance out the bot-driven intelligence of AI. Here's an example. I read this this morning, and was like, huh? What does all this mean? "Cat, I farted", again... saved the day. I've maxed the copy here again. Translation in comments.

Seed funds sub $75M cannot play the $5M on $25M pre-seed game. Here is why: Investable Capital: $60M. 30% reserves (low) = $42M for first checks. 30 companies at pre-seed/seed to be diverse. Leaves 1.4M per check. Applied to 5/25 you get MAX 5-6%. Post dilution, it is 3-4%. The maths is just really fricking hard to make work. #Founder #funding #business #investing #vc #venturecapital #entrepreneur #startup

Big mistake VCs make when raising funds. They do not package the product well. You need to put yourself in a box. Consumer, Europe, seed. PERFECT. Pre-seed to series B, global with no sector focus, AWFUL. Package yourself for an LP to know what bucket to put you in. #Founder #funding #business #investing #vc #venturecapital #entrepreneur #startup

Raising a large sum of money is an impressive feat, but it's only the beginning of the journey. True financial success requires discipline and sound decision-making! #equitymatch #startup #investment #venturecapital #angelinvestor #fundraising #businessdevelopment #entrepreneur

Founders, if the venture investor has never raised money either for a company or a fund, they may say they empathise but they cannot in the same way. #Founder #funding #business #investing #vc #venturecapital #entrepreneur #startup

How to save $30,000 when fundraising. The legal fees when raising equity can be exorbitant, especially if raising a seed round or your first external investment. Yet, it needn’t be that way. There is a construct called a SAFE. It’s a Simple Agreement for Future Equity and is a well-known construct within the startup community. Initially pioneered by the Finance YCombinator team it has become the de facto way to raise capital without running up exorbitant legal costs. Last week we mentioned the exceptional work that Immad Akhund & Mercury have done in fixing banking. They have gone a step further and created a superb framework for creating your SAFE, getting your fundraising sorted, and saving you $30,000+ in legal fees. mercury.com/safe Check it out and ping me if you have any questions. #us #business #businesstips #entrepreneurship #startups #SuccessJourney #GlobalBusiness #SMESunday #SME #SmallBusiness #BusinessDevelopment

Dear founders, The toughest questions will be asked by the window shoppers who neither have the capability nor the intention to buy... The same goes for startup investments as well.. The most difficult questions will be asked by those investors who have no intention nor perhaps the ability to invest. So don't get discouraged by their so-called expertise and opinions. Continue building with or without investor backing. Remember the goal is not investor validation or raising funds but to build your company and investors are a means to that end and not the end in itself. #windowshopper #investor #fakeinvestors #founders #fraudinvestors #fundraising #fundraising #investments #startupcapital #investorpitch #startuplife #buildyourdreams #entrepreneurship #aarvys #ceonextdoor

Have you suffered for knowledge? That's the real question when you're dropping an opinion or articulating your thesis. Whether you're a founder hustling for cash, an investor promoting multiples, or a fund manager pitching to the big players – this one applies to all of us. #entrepreneur #startup #founder #funding #business #investing #vc #venturecapital #pitching

Had lunch today with two junior Partners at different respective VC firms. Both firms have senior Partners over 60 who show no signs of stepping aside, despite LPs insisting on concrete succession plans. The senior Partners never got rich (lack of exits), so they're in no hurry to walk off gracefully. They're also in denial about, well, a lot of things. The junior Partners are rightly going to leave. Succession issues are what kills many VC firms. Once GPs get into their mid-50s they need to start thinking hard about how many funds they have left. Fundraising can last a couple of years. Fund lifespans last well over a decade. LPs usually aren't looking to back Managing Partners well into their 70s and beyond. Sometimes you just gotta know when it's time to ride off into the sunset. 🌅 #vc #venturecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #investing #investors #investment #money #business