<i>From</i> <i>the</i><i>CTO</i>
  • 2019 | bndwgn.co Reach Us 0

From theCTO

Everything about Startup Investing that you were afraid to ask…by Michael Siebel of YCombinator.

Only a very narrow slice of companies VC’s want to fund

How big of an exit do you think your investor is going to be excited about

$10-100B companies are what investors care about

Some investors want you to prove you're in a massive market

Step 1
Step 2
Step 3

YC: 8500 apply, all founding teams, every stage, every industry, people still psyching themselves out from not applying, every industry, reads 500-600 apps/3 months, personally invested in 50-70 companies, YC announcing $150l checks this Friday


Raising VC

Drawbacks of Raising

Average Investor

  1. Communication
    1. Funders are given really bad advice
      1. Telling the whole story; WTF does your company DO
    2. Investors are almost NEVER your customers
      1. Don't pitch them as such
      2. Sign you're doing this is if you're using jargon
      3. You need 2 different pitches
        1. Ppl not in your industry (dummies)
        2. Industry experts
    3. Don't be snazzy, doesn't have to be a cool tagline
      1. Google wouldn't say "organizing the word's info" in a pitch, they'd say "you type info into a box and see a list of results.
      2. Paint them a picture of what does your company do

Know your investor, are they in your industry?

What he looks for
-moving faster than you'd expect
-industry/domain expertise
-demonstrates you have the skills to execute
-software developers have increased odds of being funded (having access to writing code via your team is the biggest cheat code)

Hustle the same way to find a tech cofounder

The rest of the investment world outside of YC depends on who you know

How to win over a VC

"Good founders choose the rules they follow"they don't just break every rule

Audience Questions