Vijay Anand’s Post

That one time I got a ton of value out of being rejected by a VC: In early 2015, we went out to raise Mode’s Series A. I met Mike Dauber through a friend who was an exec at Platfora, where Mike was on the board. Mike had just left Battery Ventures to start Amplify Partners. His experience and Amplify’s focus seemed to match perfectly with what we were up to at Mode. My co-founders and I went into his office for a one-hour conversation. I don’t recall speaking with him too much beyond that, but he was kind enough to give me a phone call and break the news to me live. Here's roughly how it went: “We like the company, but we think this deal will be too expensive for us. We are really just set up to do seed deals.” “What do you think the right price is for this round?” “$28 million pre-money” Back then, $28m was a pretty good Series A — and certainly beyond a seed round — so it felt like Mike was being honest with me. And I had heard “no” enough times at that point to recognize that he didn’t have to give me a number. So I asked him for more thoughts, and he was very free with them. But the number turned out to matter the most. Because a couple weeks later, we had a term sheet on the table and another one coming. The first one was at $20m pre-money. We bet on Mike’s guidance and told the second firm that we were looking for $28m. And that’s what we ended up with. Maybe we could have gone higher, but we certainly wouldn’t have thought to go 40% above our other term sheet without an expert giving us some indication that it would be reasonable. So when I was prepping my deck for the Series B a couple years later, the first person I called was Mike. Not because I wanted him to invest. I was 100% certain he wouldn’t. I just wanted his opinion on my pitch; on the company. Once again, he gave me direct, actionable feedback that made my pitch better, and ultimately helped me get a great round done. It was a bit more critical this time -- it certainly didn't feel as good as hearing "your deal will be priced to high for me." But that made it all the more valuable. I can’t stress enough how rare this is. Especially as a CEO, it’s very difficult to find people who will tell it to you like it is.

🤫 Everything “inventive” about Equal Ventures is a lesson learned from other firms Prepared Mind: Accel Keiretsu: Kleiner Perkins Hands-on: Benchmark Roadmapping: Bessemer Venture Partners Hatching: General Catalyst Known ingredients can create uniquely beautiful recipes when you find the way to make them work together

The startup landscape is evolving, thanks to ample private capital reshaping the journey from inception to IPO. Secondary markets offer liquidity without the IPO fuss, but eventually, the gravity of public markets beckons. 💰 Private capital buys time, but public markets offer scale. 📈 Secondary markets sustain growth, but IPOs provide the ultimate liquidity. 💡 Balancing private incubation with public listing is key for sustainable innovation. You see a future where startups thrive on both sides of the funding spectrum.

Struggling to raise capital as an early stage founder in the current market? Here’s what helped us: Casting a smaller net for investors who truly understand the startup grind isn't just about what is the hot topic that month but about building something meaningful. As a result you gain partners who empathize with the journey and the struggles because they have been there themselves. At Rainfall Health we're fortunate to have investors who not only believe in our vision but also comprehend the challenges we face on the path to success. Their support goes beyond financial backing; it's a shared commitment to overcoming obstacles, celebrating milestones, and growing together. To all founders out there, remember: Surround yourself with investors who not only invest in your business but also invest in you. #StartupLife #InvestmentPartners #GrowthJourney

In an industry marked by limited startup exits, understanding the nuances of this process is paramount for investors and founders alike. Our esteemed panelists at Venture West this April, will dissect potential exit pathways and offer crucial insights into market dynamics. Don't miss this pivotal discussion surround exit strategies with representation from globally-renowned companies. Venture West is now more than 50% sold out. Secure your place now to gain invaluable knowledge for navigating the complex landscape of the built environment's digital transformation. #constructiontechnology #ExitStrategies #MarketInsights

Here’s a little startup secret: Want to get better at fundraising? Start angel investing. Why? - Angel investors build trusted networks of investors, making it much easier when it’s their turn to raise. - Angel investors get to observe other founders pitch and pick up on the things that work well. - Angel investors get an inside look at effective processes for fundraising. Founders should learn to think like angel investors.

Once you've successfully validated a new venture idea, how do you know whether to build and scale it inside your company or spin it out and launch and grow it as a separate entity? You are invited interactive session from Future Foundry that will discuss different decision-making methods and examine the advantages and disadvantages of spin-in vs. spin-out ventures. Sign up here: https://hubs.ly/Q02xs0-l0

"In this episode, The New Majority founder, Mackenzie Loy, catches up with Garry Johnson III, co-founder and CEO of Bison Venture Partners, working to create a more equitable economy for multicultural entrepreneurs. The Bison Venture Partners framework consists of 1) creating new businesses, high quality jobs, and ownership opportunities, 2) scaling access to capital, technology adoption and strategic partnerships, and 3) investing in community rounds, angel syndicates, and venture capital."

My team and I got Founders over 140 introductions to investors last month. We're pacing to exceed that this month. Here is the not-so-secret thing we teach our Founders.... Most Founders don't know how to communicate what VC's want to see in investment opportunities. I coach Founders to be investable by showing them to how communicate these 3 things: ✅ Communicate that are uniquely qualified to build your businesses ✅ Communicate that are building a uniquely differentiated product ✅ Communicate your unique market insights I package all this up with a well crafted deck and send it to tier 1 funds in our network to facilitate a warm intro. I've picked this up over the years as I've helped startups raise over $50M and invested in over a dozen companies myself. So it's given me a lot more clarity on the types of deals, founders and companies get funded.

At Oyster Bay Venture Capital we receive about 500 decks per quarter. This is a mix of cold e-mails, intros, and submissions on our website. So how do start-ups break through? How should you reach out to VCs? Spoiler: A good deck is not everything. The best way is to get a warm intro by someone whose opinion we value. This can be one of our portfolio founders, one of our investors, or someone we have worked with before. This holds true for every VC out there. Get someone else to pitch your company to them. Having this warm intro will 10x your chances on getting a first meeting. Which decreases the importance of your deck standing out. We look at every deck we get - no matter how we get it. Due to the number of decks, we have to filter these decks super quickly. Thus - a good deck stands out.  But if someone I know really well tells me: you have to meet this person - I will. And thus a bad deck can be overcome by a warm intro. #pitch #decks #VentureCapital