Kevin Dowd’s Post

Capital Primacy 101 1) Operating Cash 2) Debt 3) Equity Sale There's nothing wrong with selling "equity" (VC or PE), but only if there are very good reasons why you don't have cash and can't borrow. If you jump to equity then don't expect to be in charge of your company. #venturecapital #entrepreneurship

Some folks think top-notch founders should go solo and not rely on their investors or contacts. But that's not really how it goes. The real deal is, the superstars among founders are the ones who need the help from their investors the most and investors should be able to generously offer. These founders are all about hustle, they've got a killer drive, and a solid vision. But they're also real enough to know they might need some extra skills or know-how in stuff like building their product, getting it out there, or scoring funds. When those venture capitalist big shots step up and operationally support these exceptional founders, it's like a smart move that pays off big time for both the fund and the money folks behind it. It's like a two-way street where fund managers have gotta step up, because it's what their backers expect. This hands-on support is like the ABCs for making sure both sides come out winners on the wild ride of starting something great. #FounderJourney #VCPartnerships #StartupFunding #EntrepreneurialSuccess #InvestorSupport #FundraisingWins #VentureCapitalBoost #BuildingTogether #FounderVCCollab #FundingInnovation

So you've raised your first round... Now what? Getting that initial investment can feel like a weight lifted off your shoulders, but remember, the work is just beginning. Raise is a means, not an end. Post-funding, your focus should shift toward three key areas: 1️⃣ Execute: You've sold investors on a vision; now it's time to bring it to life. 2️⃣ Report: Keep investors informed with regular updates. Transparency builds trust. 3️⃣ Plan for the next round: Yes, already! If you plan on raising another round, formulating that strategy early can make all the difference. Your first raise is an exciting milestone in your startup journey. But remember, it's just one step forward in achieving your greater mission.

This is an interesting read, and something that has been a discussion topic at BlueTreeVC. The big question we ask founders to consider before they take money (or take more money) is what goal are they trying to achieve. For some they want to build a large company fast and seek venture capital to accelerate their ability to capture the market. In fact, this is the traditional VC model and described as the VC Train in this article. But for others, they are developing a niche solution that addresses a key need for a portion of a larger market that is currently not being served by the solutions that currently exist. They can build a strong business that is ripe for acquisition by larger players because they are attacking a known problem in a philosophically novel way. These founders do not measure their success by their ability to raise more funds, but instead by their ability to achieve a strategic exit. This is where BlueTreeVC and other funds like us differ from the traditional VC model. Neither solution is right all the time. Instead, founders need to be clear about what they want to achieve, and why. And then reach out to like-minded investors. #RationalCapital #BlueTreeVC

This article is another example of why founders need to be clear about their goals before accepting investment from anyone. Without alignment around goals, the investment may be more trouble than it is worth. #RationalCapital

Most VCs don’t add as much value as they think https://lnkd.in/gKXfFKMZ almost 3000 impressions - 33% of founders said that they felt VCs simply weren’t honest about the expertise they could offer - 65% said VCs missed mark delivering beyond cash  - Female founders rated value-add as twice as important than males - Value-add includes connections to partners, customers, talent, sharing knowledge Lean AI startups are the new black so bootstrap with $500K - $1M from friends and family, angels, pre seed VC on a SAFE to standup functional MVP with paid early adopters then close $3M - $4M seed funding at 2X - 3X valuation on SAFE then get to $5M ARR in 2 years and no more funding needed then perhaps do do small Series A once you hit $10M ARR and your cap table is awesome where VC's just own 30% - 35% 😉 Cheers.....Steve AI startup advisor 'force multiplier'  https://lnkd.in/g38mWcs 

I see a lot of founders getting inspired from the 'million dollar' fundraises nowadays. But the current fundraising narrative is broken. It goes something like... ➡ Build an MVP or ➡ Push marketing for customer acquisition (high CAC) ➡ Gain enough customers to showcase that you have proven PMF ➡ Approach 1000s of investors ( nothing wrong with this though) ➡ Raise seed round with any investor just to 'raise' desperately ➡ More push marketing for customer acquisition, cycle repeats ➡ Your runway comes to an end, as you thought building fast > talking to customers ➡ Run out of cash and look for another round to raise The problem here is founders are too focused on 🔥burning cash 👎🏻 diluting shareholders 🤑 creating a fundraising-focused business You can do much better. Like bringing real value to customers + shareholders. ~~~~~~~~~~~~~~~~~~~~~~~~~~~ so founders, what game are you playing? Valuation OR Value creation? Comment below 👇🏻👇🏻 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Share it with fellow founders! . . . Connect with me Pranay Oberoi Fundraising? Fill out the form in bio. . . . #startupfunding #pitchdeck #venturefunding #angelinvesting

Just because you have raised a Seed round it doesn’t mean your next round needs to be a Series-A. The same can be said between a Series-A and Series-B round. I’m seeing more and more of this. Founders that have successfully built a business, raised a reasonable Seed round and have experienced some solid growth and success but don’t yet have a rinse and repeat model where they feel they could effectively deploy a large round into a GTM strategy and team that’s both proven to work and proven to scale. There’s nothing wrong with saying we’ve effectively deployed our Seed round well and shown we can grow [X00%] with it. We’re insure if we can effectively invest £5m-£10m right now but we’re raising a further £1m-£2m to continue to do what we’ve just done well whilst we continue to learn how we go even quicker faster. If you are ready for that big injection of capital, that’s totally fine too, I’m just highlighting that it’s not the only way and getting things right is always better than rushing just to conform with the norm. _____________________________________ 💭 Agree? Disagree? Let me know in the comments. 🔔 Like my content and want to see more? Follow or connect Kiran Mehta. ♻ Found this post useful and think your network will to? Please hit that repost button. #vc #venturecapital #founders #founderstories #raisingequity 

𝐑𝐚𝐢𝐬𝐢𝐧𝐠 𝐚 𝐒𝐞𝐫𝐢𝐞𝐬 𝐀 𝐢𝐧 2024 Good article in Tech Crunch on Raising a Series A in – main take aways 👇   👉 The bar is raised for all founders, and product-market fit continues to be what the market looks to see.   👉 The fundraising cycle, once you start it, takes twice as long and requires three times the conversations. Prep for Series A, way in advance   👉 Pre-seed and seed rounds should start focusing on their business at least 12 to 18 months before fundraising a Series A. This includes understanding their business model, connecting with the proper investors, and stress testing their readiness.   https://lnkd.in/dWscZVup #Seed #Series A #VCs #founders

🟢 Dr David's Green Nugget Advisory Tip 🟢 The biggest mistake founders have when it comes to raising capital: Not being ready to raise capital! There's a LOT more to it than having conversations with investors. There's a lot of materials you need. Do you have a capital-raising calendar? Do you have an organic marketing calendar? Do you have a 2min video pitch to send to others? All advisors here at UCS are passionate about the startup world because we've all been there. We live, eat, and breathe this, just like you. Take our quiz to see where you are and what you need and then let's hop on a call. #InvestorReady #RaisingCapital #StartupFunding #VentureCapital #AngelInvestors #InvestorPitch