4 ms·

Drafting your first investment round.

18 points by andreasklinger 13y ago

andreasklinger 13y ago
OP here. I would love to try something here. The goal is to have a good source for early stage founders. And my advice - in the end - is also just one opinion. I would love to hear yours. If you got your own insights to add (or spot errors) I would recommend you to submit your changes via draft[1]. I will add them step by step. [1]: https://draftin.com/documents/57927?token=tGIgh5zd28S0cGt0Yy4frppsMmFYH5ymUQVkbPGU3Ko https://draftin.com/documents/57927?token=tGIgh5zd28S0cGt0Yy...
ldn_tech_exec1 13y ago
I love the quote from @msuster
missy 13y ago
What I like is that its an honest hands on approach from a founders view with the thus resulting experiences. I work as a VC and I could not explain these observations in the same way and give the feeling of being with you in a bar in a founder to founder relationship. Look forward to reading more :)
sgs1370 13y ago
Great article. For something even more in-depth, see Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld http://amzn.com/0470929820 http://amzn.com/0470929820 (I just finished reading it, and found it extremely informative.)
staurimas 13y ago
Right. Every founder should look for A-level co-founders as well as A-level investors. The only thing I would make more clear here is how long does it take to find those A-level people and close investment round. Founders have to multiply by two whatever number they have in their head :) Closing round alone takes about 4 months in average. The worst thing that can happen is to get short on money while looking for investment. This not only makes things complicated for startup, but also scares away investors. So it is very important to save/earn enough money in order to get more (smart) money. Good poker players have at least 100 stakes (the amount they can loose in one game) in their bankroll. This way they can avoid short term harmful decisions. If this comparison makes sense... Post is great like many other recent presentations/posts by Andreas and def deserves retweet :) Cheers @staurimas
- andreasklinger 13y ago
  thx for the kind words. agree on your point about the fact that it just might take to long to close a round if you reach for a-level. it's more about a more strategic approach to drafting the round if you reach a or b or c in the end is a different topic. but at least you reach the right direction in each area

OP here. I would love to try something here. The goal is to have a good source for early stage founders. And my advice - in the end - is also just one opinion. I would love to hear yours. If you got your own insights to add (or spot errors) I would recommend you to submit your changes via draft[1]. I will add them step by step. [1]: https://draftin.com/documents/57927?token=tGIgh5zd28S0cGt0Yy4frppsMmFYH5ymUQVkbPGU3Ko https://draftin.com/documents/57927?token=tGIgh5zd28S0cGt0Yy...

ldn_tech_exec1 13y ago

I love the quote from @msuster

missy 13y ago

What I like is that its an honest hands on approach from a founders view with the thus resulting experiences. I work as a VC and I could not explain these observations in the same way and give the feeling of being with you in a bar in a founder to founder relationship. Look forward to reading more :)

sgs1370 13y ago

Great article. For something even more in-depth, see Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld http://amzn.com/0470929820 http://amzn.com/0470929820 (I just finished reading it, and found it extremely informative.)

staurimas 13y ago

Right. Every founder should look for A-level co-founders as well as A-level investors. The only thing I would make more clear here is how long does it take to find those A-level people and close investment round. Founders have to multiply by two whatever number they have in their head :) Closing round alone takes about 4 months in average. The worst thing that can happen is to get short on money while looking for investment. This not only makes things complicated for startup, but also scares away investors. So it is very important to save/earn enough money in order to get more (smart) money. Good poker players have at least 100 stakes (the amount they can loose in one game) in their bankroll. This way they can avoid short term harmful decisions. If this comparison makes sense... Post is great like many other recent presentations/posts by Andreas and def deserves retweet :) Cheers @staurimas

andreasklinger 13y ago
thx for the kind words. agree on your point about the fact that it just might take to long to close a round if you reach for a-level. it's more about a more strategic approach to drafting the round if you reach a or b or c in the end is a different topic. but at least you reach the right direction in each area