Jenny Fielding

Many of the best startup founders will get mixed reviews during due diligence. It's important to remember not to confuse being liked with being great. In the case of outlier founders, many have a chip on their shoulder with something to prove to the world, which makes them less agreeable, fairly intense and likely to rub people the wrong way. So getting mixed feedback in DD is not only healthy but a positive sign.

If deal terms have been agreed upon (handshake or more) and the founder changes the terms without proactively discussing with the investor, then the investor should walk away from the deal. If the deal terms were not agreed on firmly yet but the terms 'discussed' are changed, then the investor should have a direct conversation with the founder to better understand the situation and be open to a new scenario. For example when a founder wants to bump up the valuation because the total size of the round increased. But the hardest part is the grey area when the investor thought they had a deal while the founder was still shopping around for a better offer. The best thing to do is keep open communication and also be ready to walk away.

The common thread among the most successful startups I've backed at pre-seed (5 unicorns) is that while other startups in the space were all running in one direction, the companies that out performed had a completely different view of the market. And since these founders zigged while others zagged, most VCs weren't chasing these deals because they looked and acted a bit different. If the pack is running one way, have the confidence and conviction to look in another direction.

Contrary to what many people think, securing a startup's brand has little to do with intellectual property and all to do with winning the hearts and minds of loyal customers. All too often I see founders worry about buying the perfect URL, filing complicated patents and fussing over trademarks. None of this really matters at the early stage of company development, before product / market fit. Once the company wins market share and develops deep customer love, then it's easy enough to buy the perfect URL or hire lawyers to secure IP / names and other assets.

Well I think we are saying the same thing Reid. Each founder should play a part and not sit silent and say nothing. I consider the pitch to be the entire first meeting, usually 30 minutes.

Each founder attending an investor pitch should deliver part of the pitch in a coordinated and thoughtful manner. All too often, 3 founders attend a pitch meeting and only one speaks. This is a yellow flag for many investors and brings up more questions than it solves having those other co-founders there in the first place. So instead, give each founder a critical part of the narrative to deliver that plays into her/his strengths and practice the flow a few times to make sure that it comes off smoothly and cohesively.