Alexis Ohanian Sr.’s Post

This is super instructive on how to differentiate a new VC fund. Also how to think about riding the changes happening in venture industry. https://lnkd.in/gM7wP4KC

Just read this gem from a LinkedIn guru who purports to prepare you for your big venture raise: "Once you cold email an investor the positive perception of you goes to zero...they will instantly think negatively of you." The implication being that you must first hustle your way into a deep network of investors and founders who can give you that coveted warm intro and sidestep the judgmental gatekeeping. The problem _is_ the judgmental gatekeeping. If you're a VC or angel who thinks the only good ideas come from your insular network, maybe the issue isn't founders who have better things to do than navigate a labyrinth just for the privilege of pitching you an idea.

The last decade has been marked by a notable shift from an individualistic approach to investing to a communal one. New investors see that investing alongside a community, driven by shared purpose, camaraderie, and trust, can actually have a meaningful impact on financial returns. In a new article, we sat down with some tenured community builders to discuss the different ways that community shows up in VC, the difference between building an audience and a community, and the competitive advantages of having engaged community members in your investing syndicate. Read on to hear perspectives from Julie Weber of The Helm, Zachary Ginsburg of Calm Ventures, Alex Pattis of Riverside Ventures, Brian Nichols of Hustle Fund Angel Squad, Jason Burke of All Stage, and Brad Jenkins of Seed Round Capital. https://lnkd.in/eaKzRkfT

Shout out to Brian Nichols and team at Angel Squad for putting together a great platform for Angel (and other) investing. Their community of great folks are here to support founders and their teams to be successful. If you're interested in learning more, feel free to reach out! #AngelInvesting #CommunitySupport

You don't need to be super rich to start angel investing - this is such a long game, and it actually makes more sense to start sooner rather than later. Hustle Fund’s very own GP Elizabeth Yin started when she was a bootstrapped founder: The fastest way to learn and excel is to get involved and start reviewing deals. Only then can you have the experience to pattern-match deals. Start your check sizes small - as little as $1k each. That’s what Elizabeth started with, and that’s what hundreds of Angel Squad members have started with.

When a founder’s friends and family hear they’re fundraising what they’re picturing is probably an episode of Shark Tank. Sure, fundraising can include an intro song, a sexy presentation, and quirky investors. There’s a lot more to it than that though, no matter what the pitch looks like. Fundraising is hard. Founders face difficult negotiations and tons of rejection. There is also the unexpected: hidden costs, scary forecasting, and watching your relationships take a back seat as all your time goes to wooing VCs. Some rounds are easy and quick, others are a slog. Remember, there’s little correlation between how easy it is to raise and ultimate success. Companies like Coinbase and Airbnb struggled to raise in the early days but founders have risen to the occasion. You will too. If you're raising now or in the future, we tip our hats to you.  And if you need a helping hand, hit me up :)

“Play Money! changes the rules of angel investing so more of us can get in the game.” If you want to learn about angel investing and get in the game there is literally no better place to start. Cheryl Kellond 💎 and Jill Soley are two badass founders creating the future of angel investing. #AngelnvestingMadeDelicious

Founders must understand that when they raise venture they're borrowing against the future, and betting, against big odds, that they'll eventually create value that exceeds what they've raised, by orders of magnitude. They must have supreme confidence in their idea, market demand for it, and their ability to hit extremely ambitious targets. ZIRP enabled a Ponzi-like dynamic that no longer exists. Try to keep your ideas small, self-funded, and stay extremely close to your customers as a founder while you're validating product-market fit. And when you absolutely must raise venture, make certain you're talking to the right seed investors.

DYK: A lot of VCs won’t even look at a Seed Stage company that has been in business over 3 years, much less 5+ years. My view: it depends. If you raise outside money and it takes you 3+ years to show PMF, then it could be problematic. If you bootstrap (your money/time), for 10 years. I doesn’t bother me that much. You have de-risked the opportunity on your own nickel. The key takeaway: The timing of raising outside money (professional- not angel) isn’t just about the valuation and dilution. It is also about the “shot clock” starting. Whether it’s Pre-Seed to Seed, and especially Seed to Series A. Series A folks want to see momentum. These aren’t “rules” by any means but do understand the concept. VCs have a deadline to get their money back. It’s not just the return. It’s the difference between ROI and IRR.

If I could go back to the early-20s version of myself that was obsessed with raising VC money, this is what I would have told him: • It's framed as a 'raise', but you're actually just selling your business • You no longer have total control over the direction of your company • You can (generally) no longer choose to build a healthy, profitable, sustainable business. Now you have to go for hyper-scale. • Your mental health is going to suffer as a result of VC pressure Plenty of companies need venture capital. But ~lots of founders believe they just need to go out there and raise a bunch of venture capital to run a 'real' or impactful business. You don't.