David Sade, CFA’s Post

🔍 But Our Startup Has a Great CFO, Why Do We Need External Financial Advisors? This is a question I often hear from startup founders, and it's a valid one. In my years of working with startups, I've seen many founders take the bold step of approaching investors directly. While admirable, this path is fraught with unseen challenges. Here's what I've observed: 🔔 Misaligned Investor Matchups Without expert guidance, founders often knock on doors that aren’t the right fit. Not every investor is suited for every startup. It's not just about finding an investor, it's about finding the right investor. 🔔 Valuation Missteps Valuing a startup is complex. I've seen many founders either undervalue their business, leaving money on the table, or overvalue it, leading to tough negotiations and sometimes, no deal. 🔔 Negotiation Naivety Investor negotiations are nuanced. Without experience or a seasoned negotiator by your side, it’s easy to get overwhelmed and agree to unfavorable terms. 🔔 Presentation Pitfalls Crafting a compelling pitch isn’t just about the content. It’s also about delivery, timing, and understanding what resonates with investors. 🌟 The IB Advantage An experienced investment banker does more than connect you with investors. They align your startup with suitable investors, assist in accurate valuation, negotiate favorable terms, and refine your pitch to perfection. Seeking investment is more than a meeting; it's a strategic journey. Navigating it alone can be risky. Have you faced challenges approaching investors directly? Or are you considering it? Would like to hear your experience, and if you have any questions, doubts, feel free to message me. Will be more than happy to help. #Investment #Funding #Startups #Founders #QubitCapital #InvestmentBanker #Advisor

The VC landscape has evolved to a strange place where acute decisionmaking or extremely delayed decisionmaking is the norm and this is really bad for everyone involved. Let me explain... When a startup goes to raise money and has both sophisticated founders and a good idea, they can usually get looks from VCs and angel investors. Now most of the time, VCs and angels will say "it's too early for us" which may or may not be true, but is a nice way of not having to tell founders their idea is bad. But once a founder gets an investment offer (especially from a well-known VC), other investors are now forced to do rapid Due Diligence because in order to get in on the deal they have to make an offer that's competitive and quick. This is bad for the ecosystem and as a Yoko Okano once mentioned, "investors can act like lemmings". The lemming behavior leads to lots of offers on pre-product startups that may or may not work out. Acute decisionmaking is the exact opposite of what early stage investing should be. Watching how founders react to adversity and how they adjust their product and GTM strategy can tell you a lot about their ability to build and grow a company. The other thing that occurs is when investors aren't forced to make a decision and instead wait and wait and monitor because there's no pressure. As far as this approach goes, I'm not an advocate for waiting around for 6 months to cut a $25k check into a pre-seed company. The takeaway is that investors need to have principals and stick to them and that FOMO as a reason to invest is a dumb one. You need to be contrarian and right which requires not following the crowd.

THINK LIKE AN INVESTOR If you are part of the start-up world you are or are becoming well aware that it is a high-stakes arena where innovation attempt’s to meet capital. Jazz Ventures, LLC understands the common pitfalls which are crucial for our them to making sound investment decisions.   We work to prepare our clients to meet and impress investors. We know that our investors will carefully evaluate a startup's market potential, financial health, team dynamics, and timing which are all essential to mitigate their risk and increase the chances of a successful investment. Without having these areas in place, investors will discard even the most innovative idea. While the allure of substantial returns is undeniable, the reality is that the vast majority of startups fail. A brilliant idea is worthless without a market that desires them and a plan to reach them (business model). Many founders underestimate the costs associated with launching and scaling business.  One of the keys is to show financial management past and projected future. Without a solid financial plan and a keen eye on expenses, running out of money can be inevitable which begins the constant chase for money taking the founders eye off the ball.  A strong, cohesive team and leadership complementary skills is also essential for navigating the challenges of building a business.  The ability to differentiate your product or service and the timing can be everything. Economic downturns, industry shifts, or the emergence of competing products can all impact a startup's chances of success. By understanding these common pitfalls, founders can better prepare for the potential of their startup and help investors make informed decisions. #Differentiate #BusinessModel #Financials #Navigate Mary MacCarthy, MBA Kathy Vignau, M.A. Thomas Bregmann

## Q-MATCH: Navigating the Investment Maze 💰 Every great idea, every groundbreaking startup, and every ambitious expansion needs one crucial element to thrive: investment. But securing funding can feel like navigating a complex maze, filled with twists, turns, and dead ends. 🤯 Finding the right investor who aligns with your vision and believes in your potential can be a daunting task. It requires not only a solid business concept but also a compelling presentation, thorough due diligence, and a clear roadmap for success. That's where we step in. 🤝 As seasoned advisors and investment matchmakers, we understand the intricacies of both sides of the equation – the aspirations of startups and the expectations of investors. Here's how we can guide you through the investment maze: ** Startup Support:   - Idea Audit & Roadmap Development: We'll assess your concept, MVP, or existing project and provide actionable recommendations for refining your business model and growth strategy.   - Due Diligence Preparation: We'll ensure you have all your ducks in a row with meticulous due diligence, making you a more attractive prospect for potential investors.   - Pitch Deck Perfection: We'll help you craft a captivating pitch deck that tells your story and showcases your potential.   - Investor Matching & Pitching: We'll connect you with relevant investors and coach you on delivering a winning pitch. ** Investor Support:   - Deal Flow Sourcing: We'll identify promising startups that align with your investment criteria and risk appetite.   - Due Diligence & Deal Evaluation: We'll assist you in thoroughly evaluating potential investments and making informed decisions. Whether you're a startup seeking funding or an investor looking for exciting opportunities, we're here to be your trusted partner on this journey. Let us help you navigate the investment maze and turn your vision into reality. ➡️ [email protected] #InvestmentMatching #StartupFunding #VentureCapital #PrivateEquity #InvestmentAudit #PitchPreparation #DealFlowGeneration

Genuine Connections trump everything in the Startup / VC ecosystem, why ? 1. 𝐈𝐭'𝐬 𝐚 𝐒𝐦𝐚𝐥𝐥 𝐖𝐨𝐫𝐥𝐝: - High Overlap: Approximately 60% of people from notable VC funds are familiar with each other, either directly or indirectly. - Information Flow: Information, including reputations of both firms and individuals, travels quickly within this circle. A good or bad reputation can spread rapidly, impacting potential deals and partnerships. - Collaborations and Co-Investments: The familiarity among VCs often leads to co-investments, where multiple firms invest in the same startup. These collaborations are built on trust and mutual understanding developed over time. - Mentorship and Guidance: Experienced VCs often mentor newcomers, developing a shared knowledge base. This mentorship helps expedite ones growth in the industry. 2. 𝐂𝐫𝐞𝐝𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐚𝐧𝐝 𝐌𝐚𝐢𝐧𝐭𝐚𝐢𝐧𝐢𝐧𝐠 𝐓𝐫𝐮𝐬𝐭 In the VC ecosystem, credibility is crucial and has long-lasting effects: - First Impressions: Leads to being the go to person in an industry for both peers and founders, first impressions last, last longer than one thinks. - Track Record: VCs with a history of backing successful startups are more likely to attract promising new ventures. - Long-Term Relationships: Building credibility involves maintaining integrity, transparency, and reliability in all dealings. Long-term relationships are often based on the trust and respect garnered through consistent credible behavior. 3. 𝐑𝐚𝐩𝐩𝐨𝐫𝐭 𝐰𝐢𝐭𝐡 𝐅𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐢𝐬 𝐄𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 The relationship between VCs and startup founders is pivotal for the success of both parties, difficult to repair once it takes the sour route: - Trust and Communication: Strong rapport is built on trust and open communication. Founders need to feel comfortable sharing both successes and challenges with their investors. - Crisis Management: During challenging times, a good rapport can make a significant difference. Founders are more likely to turn to supportive VCs for help in navigating crises. - Alignment of Interests: A strong relationship ensures that both VCs and founders are aligned in their goals and vision for the company. Also a lot of founder support is needed when a VC is looking for an exit. Do you agree with the above? Feel free to comment.

Bootstrapping vs. VC (Part 2) Now let`s talk about sugar daddy (or mommy!) for your startup - Venture Capital. Investors shower you with cash if they`re really interested. But be prepared, because with great power comes great responsibility (and GOOD presentations!). 𝐏𝐫𝐨𝐬: ✔ Explosive Growth: VC funding can propel your startup from zero to hero, allowing you to scale rapidly and dominate the market. ✔Dream Team Assembly: Hire the best talent with VC cash. Build your A-team of developers, marketers, and more! ✔Expertise & Guidance: VCs often have industry connections and experience to offer valuable mentorship and advice. ✔Validation & Credibility: Securing VC funding can be seen as a stamp of approval, attracting customers and partners. ✔Faster Time to Market: Get your product out there and capture market share before competitors. 𝐂𝐨𝐧𝐬: ❌ Loss of Control: VCs will have a say in major decisions, potentially compromising your original vision. ❌Pressure to Deliver: The need to meet investor expectations can be immense, leading to high stress levels. ❌Equity Dilution: You'll be giving away a significant portion of your company ownership in exchange for funding. ❌Investor Reporting & Scrutiny: Prepare for regular meetings, presentations, and performance reports to justify VC investments. ❌Exit Strategy Pressure: VCs may push for an exit strategy (acquisition or IPO) that might not align with your long-term goals. 💡 𝐕𝐂 𝐦𝐢𝐠𝐡𝐭 𝐛𝐞 𝐚 𝐛𝐞𝐭𝐭𝐞𝐫 𝐟𝐢𝐭 𝐟𝐨𝐫: Ambitious entrepreneurs seeking hyper-growth. Startups requiring significant upfront investment (think AI or biotech). Ideas that can benefit from industry expertise and connections. Ultimately, the best choice is the one that empowers you to bring your vision to life! Need a consultation? Write us at Requestum. Let`s conquer the entrepreneurial world together! #funding #VC #Requestum #bootstraping #investor #investment #vanturecapital

I hear many founders that get the same 'cliche' responses from VCs, yet they do not come back with questions to learn more about how they can improve. In some cases, investors will intentionally give vague feedback and would not tell founders the truth, but founders should always be eager to learn from good and bad feedback. The best way to learn is by asking a question back to the investor and hopefully that will show you wish to learn, and also will help you learn from that feedback. Here are 10 responses founders get from VCs and my proposal for a question founders can ask back: 1️⃣ VC: "You are too early for us." Founder: "What metrics do you evaluate to determine the stage of a company?" 2️⃣ VC: "Come back when you have traction." Founder: "What metrics would you like to see when we come back to you next time?" 3️⃣ VC: "We liked you but you're not a good fit for us." Founder: "What did you like about our company, and what would be the companies that would fit to your focus as a fund?" 4️⃣ VC: "We don't believe you are investable" Founder: "What would make a startup investable for you? and how you believe we could get there?" 5️⃣ VC: "We didn't see your 5-year financial plan." Founder: "What is the purpose of seeing a 5 year financial plan, as we are an early stage startup, and things will probably change?" 6️⃣ VC: "Come back to us when you have a lead investor." Founder: "Do you by design only follow? and would you have some VCs in your network that would be interesting to lead such a round?" 7️⃣ VC: "We don't provide feedback about why we do not invest." Founder: "Could you provide feedback about our meeting and how we could be better next time when we pitch to other funds?" 8️⃣ VC: "We don't think your product is defensible." Founder: "What would be the ways you would measure defensibility? is it IP? other ways?" 9️⃣ VC: "The market you are addressing is not big enough." Founders: "What would be a typical TAM you would consider for investment?" 🔟 VC: "We don't invest in first time founders." Founders: "Why do you believe first time founders have less of a chance to win this market?" What other statements you received from Venture Capital investors and how would you respond to them? #venturecapital #startuppitch #investments #fundraising #founders #entrepreneurs #startups #capital #privateequity #ventureinvesting

These are excellent questions for founders (especially early stage) in dealing with VC. In some of questions, there are some parallels with how new VC funds may wish to query LPs… let me know if you spot it

Venture Capital: 6 Skills you need to succeed in VC 💎 Network Building: Venture capital is a relationship-driven field. Cultivating strong connections and trust with founders, co-investors, and your network is paramount.  Negotiation: You'll frequently negotiate term sheets with entrepreneurs, investment committees, and co-investors. Skilled negotiators can drive favorable outcomes for all parties. Understanding capitalization tables and the impact of new funding rounds on ownership is paramount. Sales Skills: As a VC, you're selling a story to entrepreneurs – the firm you represent, your value-add, and why they should take your money/invite you onto their board. Internally, you're selling your conviction on deals to your investment team. Continuous Learning: Venture has long feedback loops – it can take 7-10 years to see an investment's true outcome. An eagerness to understand what drives success or failure in your portfolio is vital for continual improvement as an investor. Strategic Vision: Venture is high-risk, with most companies failing. You must evaluate the founders' long-term vision, market opportunities, and competitive advantages with a critical yet empathetic lens. Emotional Intelligence: Founders pour their life's work into their startups. As a VC, you must navigate tough conversations surrounding pivots, fundraising struggles, or leadership changes with poise. TL;DR - Network Building - Relationship mastery is key in the venture world.   - Negotiation Prowess - You'll negotiate deals and terms constantly.  - Sales Mastery - Sell the story to founders and your internal team.   - Strategic Vision - Critically evaluate founders' long-term vision.   - Emotional Intelligence - Navigate founder journeys with wisdom and care.   #VentureCapital #EntrepreneurshipSkills #InvestorMindset #CareerGrowth 

Heard stories of startups making investors insanely rich? That's the allure of VC...but for every big win, there are plenty that fizzle. For those serious about major growth, knowing the difference between PE and VC is a must. Let's dive in... 👉 Investment Stage: VC: Bets on early-stage companies with the potential to upend old industries. High risk, but the payoff can be huge. PE: Targets established companies, aiming to unlock value through smart overhauls, buyouts, that kind of strategy. 👉 Ownership: VC: Usually takes a smaller piece of the pie, providing funding and advice to help the startup grow. PE: Seeks a bigger stake, sometimes even full control, to actively reshape the company's direction. 👉 Time Horizon: VC: Prepare to play the long game (5-10+ years) for those crazy potential returns...but also be ready if things go south. PE: Typically holds companies for a few years (think 3-7), looking for consistent gains through improvements. 👉 Getting Your Money Out: VC: Less flexible, needs big growth to cash out. PE: Often has tried-and-true exit routes (IPOs, selling to another company) for a smoother payout. 👉 What to Research: VC: Is the team legit? Can this idea shake up the market? Can it scale big? PE: Crunches numbers on financials, efficiency...where can they add value quickly? Thinking PE or VC could supercharge your portfolio? Let's figure out the best fit for your goals. Contact us today 🔗 https://lnkd.in/egJZUvFa #impactfulinvesting #growthcapital #venturecapital #privateequity #waterstreetfinancial