Chetan K.’s Post

I’ve angel-invested in around 20+ companies in the last 4 years. 30% of them failed. Here are 3 lessons that I learnt in this journey 👇 1/ 𝐅𝐨𝐮𝐧𝐝𝐢𝐧𝐠 𝐭𝐞𝐚𝐦 𝐢𝐬 𝐚𝐬 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐚𝐬 𝐭𝐡𝐞 𝐢𝐝𝐞𝐚 In the initial stages of my investing journey, I overlooked the potential of the founding team and invested solely in the idea. Over time, I realised that the best business idea is equally as important as a strong founding team. A talented and committed founding team can overcome multiple obstacles, while 65% of startups fail due to co-founder disputes. 2/ 𝐍𝐨 𝐞𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐦𝐚𝐤𝐢𝐧𝐠 Previously, I often found myself overwhelmed with information, leading to emotional decision-making. Now, I prioritise confidence in the startup's growth above all else. Here's my approach to evaluating a startup's growth potential before investing: ✅ What is the size of the market for the problem statement? ✅ Can the idea potentially lead to a 20-50x venture outcome? ✅ Is the founding team capable of moving swiftly with both structure and speed? 3/ 𝐁𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐭𝐡𝐢𝐜𝐤 𝐨𝐟 𝐭𝐡𝐢𝐧𝐠𝐬 As an angel investor, create an investment process alongside your investment. This way, you can understand what the founder is up to and how you can add value to their venture. Don't just make investments. Lay the groundwork for a firm-founder relationship. -------- 👉For first-time angel investors, it can be a journey of excitement, uncertainty, and a lot of new learnings. Be ready to learn, adapt, and evolve. Regardless of whether the startup succeeds or not, you’ll see yourself growing! #investment #angelinvestment #investor #angelinvestor

Challenging old style investing. In October, as we were ambitiously expanding our reach, I found myself in conversation with the lead of a north west based angel syndicate. I’ll admit, the aim was a soft sell of the complimentary services of FundMyPitch, yet it became clear that for some investors embracing technology, or a new way of working - even when it benefits founders, isn’t an option. Their reservations:  * We originate all our own deals - fair enough but you don’t know what you might miss  * We have built our own deal management platform. It might not be as advanced as yours, but it serves us exceptionally well- again fair enough but we can (and do) work with any other platform.  * For my advisory business, combining your success fee and my fee would not be in the founders' best interest. It’s about keeping costs competitive - agree but again we’re upfront on costs for founders and again this could have been discussed (ps advisory business and angel group are supposed to be separate!)  * I'm sceptical about platforms for fundraising. I’ve found their effectiveness is often limited by the lack of personal relationships, not the quality of the tool - Over 30 introductions this week on the platform speaks volumes! So for anyone else on the fence or with reservations, let me highlight what fundmypitch truly offers. More than a platform - We forge essential connections between startups and investors. We ensure that ground-breaking ideas receive the nurturing they need to thrive. Streamlined funding process - We remove the barriers and inefficiencies that have long plagued the traditional pathways. A broader investment pool - Our platform opens doors to a wide array of verified investors, expanding opportunities for startups to find their ideal match. It doesn’t stop here either, we’ll continue to champion a more efficient funding process, fairness and transparency on costs and broader access for all founders. Finally, many angel networks have a geographical remit that limits where and who they can invest in - at fundmypitch we welcome pitches from any founders, any location so remember us next time you’re doing a ‘thanks by no thanks email’ 😉 #StartupFunding #AngelInvesting #Entrepreneurship #PreSeedFunding

How to maximise value from Angel Investors 😇: 6 Tips for Founders & early stage CEOs to keep your Angels engaged and supportive. Angel investors not only provide capital to fuel early startup momentum, but they also bring invaluable expertise and networks that can catapult your business to new heights. The very best founders know how to capitalise on these relationships and maximise value from them - way beyond the money invested. Besides consistently growing the Revenue and EBITDA lines, here are my top 6 tips to keep your Angel investors happy and engaged: ✅ Transparent Communication ✅ Seek Their Expertise & Help ✅ Showcase Milestones ✅ Provide Exclusive Insights & Access ✅ Foster A Community ✅ Acknowledge Their Risks and Contribution 1. Transparent Communication: Keep your investors in the loop with regular updates. Share both triumphs and especially the challenges. Transparency builds trust and shows that you value their involvement and support. 2. Seek Their Expertise and Help: Angel investors often have a wealth of experience, ideas and useful connections to draw upon. Tap into that knowledge by asking for advice. This makes them feel valued and gives you access to insights and opportunities you might not have considered. 3. Showcase Milestones: Celebrate milestones and acknowledge their contributions to these successes. It reaffirms their decision to invest in your startup, and gives them even more motivation to be helpful and to champion your business. 4. Provide Exclusive Insights and Access: Give them a first / early look at new products, features, or services before they go to market. This insider perspective can make them feel more connected to your company. It also provides useful early consumer feedback, that can be extremely important in quickly uncovering any hidden problems. 5. Foster a Community: Create opportunities for investors to meet each other and network. Whether it’s a casual meet-up or a video call update, fostering a community among your investors can lead to additional support and resources. 6. Acknowledge Their Risks and Contribution: Recognize the risks they’ve taken by investing in your startup. Show appreciation for their trust and support. However well you are doing, your business would likely not exist at all without their early support and belief. Following these tips will keep your Angel investors happy and it will also turn them into powerful champions of your brand and business I was inspired to write this post, by #4 in action - and the receipt of a surprise product launch box from Jon Walsh, Dr Megan Rossi and the brilliant team at Bio&Me I B Corp Bio&Me I B Corp is one of the top 10 fastest growing grocery brands in the UK. Aside from a brilliant product range and an awesome team, they also know how to keep their Angel investors engaged and motivated to support their growth in any way they can. 👏🏼👏🏼👏🏼 #Startups #AngelInvestors #Entrepreneurship #InvestorRelations #BusinessGrowth

An Insiders View: How To Raise Money From VCs As entrepreneurs, we often find ourselves at the crossroads of innovation and funding. Bob Dahlberg's recent presentation provided profound insights into securing venture capital, emphasizing the strategic approach needed to attract the right investors. Key Highlights: 1) The VC Mindset: Understanding what venture capitalists look for is crucial. They are not just investing in ideas but in potential market disruptors with scalable models and robust teams. 2) The Art of Attraction: Your startup must showcase a clear value proposition, market potential, and a strong team to stand out in the crowded VC arena. 3) Strategic Relationships: Cultivating relationships with VCs is likened to dating—requiring time, effort, and strategic alignment to forge successful partnerships. Advice for Entrepreneurs: -Be Prepared: Know your market, your competition, and have a clear execution strategy. -Choose Wisely: Not all money is equal. Look for VCs who bring not only capital but also guidance, connections, and a genuine interest in your success. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Donna Harris shares some valuable insight into what metrics VCs care about when investing in a business. These four metrics include a sizable market, a fast growth rate, high revenue per customer, and an efficient customer acquisition cost. By demonstrating these metrics, startups can show investors their potential for substantial growth and revenue within a short period. #VCmetrics #startupgrowth #investing #businessgrowth https://flip.it/TKvs7t

The Art of the Deal: Mastering Venture Capital Terms and Trust Venture capital isn't just about the money—it's a dance of trust and promise between investors and founders. Every contract penned is a testament to a relationship far beyond mere legalities, shaped by trust, vision, and the day-to-day grind that makes or breaks startups. Diving into the depths of legal documents can be daunting, but they are the very threads that weave the tapestry of startup-investor partnerships. Understanding each clause and curve in agreements like the Stock Purchase or Investors' Rights Agreement is not just due diligence—it's a strategic play. The term sheet, that seemingly innocuous piece of paper, is in fact your negotiation battleground. It's a founder's secret weapon, a compass guiding you through the negotiation fog. Use it wisely, and it might just give you an edge, drawing in better terms like a magnet. When it comes to early investments, convertible notes and SAFEs might seem like the express lane, but remember, they can transform into significant stakes in your venture. With every fundraising round, embrace the dance of dilution—where your company's worth is weighed and measured in the marketplace of innovation. Negotiating your startup's price? It's an art form where valuation is more subjective interpretation than hard fact. It's a negotiation that requires finesse, a balancing act between what's proven and what's possible. Trust is the golden thread in this tapestry. It's not just about transparency for transparency's sake but an open book policy that builds confidence, step by step, metric by metric. And as the sands shift with every new round of funding, terms evolve. This is the fluid nature of startup growth—nothing is set in stone except the relentless pursuit of innovation and impact. #Innovation #VentureCapital #StartupLife #StrategicNegotiation #Founders #Investors #BusinessGrowth #EntrepreneurMindset #StartupStrategy #TrustInBusiness

Beyond cash, investors give you credibility and access to a wealth of resources such as their network and the experience from years of supporting startups, seeing what works and what doesn’t. If you manage them well… 😉 How do you get the most out of that after investors transfer the cash? 💭 🌟 Don’t be afraid to call the investor, be in their inbox and ask ask ask for support. They should tell you when they can’t do more or where their boundries are. 🌟Treat them well, and resolve any conflict asap. You’ll be together for 7-10 years at least. 🌟 Update them often and without a wall of text/long calls. Investors manage a lot of companies at the same time and you can help us pitch you, brag about you and introduce you to relevant people by keeping us up to speed, for example with an investor newsletter. All of this and more in this week’s episode of Startup Syndrome 🚀 https://lnkd.in/diDpfamh 🎧 Investor newsletter template: https://lnkd.in/dJWMEFNM

The Funding Lifecycle: From Pre-Seed to Series B and Beyond From ideation to scale, each stage of your startup's journey requires a nuanced approach to funding. Here's a quick overview of what tech entrepreneurs should know at each stage: Pre-Seed: Focus on validating your idea and gathering initial support. This stage is all about viability. The focus should be on validating your idea and gathering feedback to help plan for market factors that you may not have considered when creating your business plan. Friends, family and maybe a few angel investors are your audience. They are betting on your ability to execute and the total addressable market size. Seed: This stage is all about proof of concept and adding runway. You will be building your MVP and starting to prove many of the assumptions you made in your business plan. And the early traction you gain during this phase will lay the foundation for the growth that comes as you plan your go-to-market strategy. Your investor mix usually shifts to angel investors, and perhaps a VC fund specializing in seed, who are still betting on you and/or management’s ability to execute. Series A/B: This stage is all about scale and check size. Revenue growth and a path to profitability are crucial if you want financial institutions to consider your business for a potential return. This is where making sure things like your MRR, CAC, CLTV, and other SaaS metrics are dialed in and demonstrate the FUTURE value of your company. You are now dealing with VCs and perhaps some existing investors with pro rata rights. Understanding the expectations and preparations required for each stage can dramatically increase your chances of getting funding. Curious about how to tailor your financial strategy to your current stage? Join the discussion below. #TechStartups #FundingStrategy #VentureCapital #PrivateEquity #AngelInvesting

Ever wonder how you can score an investor meeting with zero contacts? The key to successful fundraising is reaching the right investors. It's true that warm introductions often open doors, but there are also other ways: 1. Networking at Events 2. Engaging in Online Communities (e.g., Product Hunt) 3. Leveraging Social Media 4. Joining Accelerators … to name a few! Your fundraising success influences the future of your startup. A staggering 47% of startup failures in 2022 were due to a lack of funding [CB Insights]. Persistence and resilience are key traits of a successful entrepreneur. Remember: when you're raising capital, you will likely get more rejections than signed term sheets. People who understand how to find investors and successfully raise capital do three things very well: 1️⃣ They bounce back from rejection 2️⃣ They create a great product story 3️⃣ They know how to reach the right people Curious to find more potential ways to reach investors? Swipe through the attachment below.👇 #Financing #Investors #SMEs #Startups P.S. Isn't it time to rethink traditional investor meetings in today's digital age? With platforms like CONDA, you can reach investors without the usual face-to-face meetings. Plus, you enjoy added benefits like increased brand awareness and market validation. So, check out CONDA Crowdinvesting - a digital investment alternative that helps businesses scale. [👤 Credit: the terms and definitions were taken from various sources like Forbes.]