Tremendous

An angel investor's take on life and business

  • From Seed to $10M ARR

    I hadn’t heard from one of my companies in over a year. I was starting to get worried. Turns out, they were busy.

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    When I heard from the founder yesterday, I was stunned. The little seed stage SaaS company I backed in the summer of 2021 was now doing $10 million a year in revenue.

    Wow!

    When you see one of your companies go from a fledgling startup to a significant business, it’s an incredible feeling. Here are a few things I learned along the way:

    Have a Clear Value Prop

    I can’t get into specifics on what the company does. But its value proposition to customers was very clear.

    Customer after customer dramatically increased revenue with their software. It pays for itself many times over.

    When you have a clear value proposition, sales gets a lot easier. And as that sales team cranks, your company grows fast.

    Metrics Matter

    On any conceivable SaaS metric, these guys were crushing it when I invested. Revenue was growing 25% month over month, LTV was 50 times CAC, and the company was already at breakeven.

    The companies that were most successful before you invested continue to be the most successful afterward.

    Don’t let anyone tell you the numbers don’t matter. They matter a lot.

    Did I Help?

    Honestly, I’ve probably added less value to this company than practically any other in my portfolio.

    Why? Because they never need any help!

    I introduced them to a few engineers early on. But by and large, I’ve just sat tight.

    My most successful companies usually have few if any asks for investors. That said, I’m there for them if things ever turn tough.

    No Distractions

    I’ve never seen this founder on Twitter. He has yet to turn up at a networking event.

    Sometimes the most vocal people aren’t the ones who are really crushing it.

    The team also never got distracted.

    They built a relatively simple but very useful product. Then they relentlessly scaled it.

    They didn’t have a metaverse strategy. They never released an NFT.

    They just stuck to their knitting and signed up more customers.

    This is Repeatable

    What struck me more than anything is how repeatable this investment is. I wish I could tell you I had a “Eureka!” moment and saw the future clearly.

    I just reviewed the product, looked at the traction, and met with the founder. The product seemed very useful, traction was great, and the founder impressed me.

    So I gave them some money. Simple as that.

    I don’t see any reason why I or another investor couldn’t find 3 more of these. In fact, I intend to!

    What have you seen in highly successful startups? Leave a comment and let us know!

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    More on tech:

    VC Whiners

    Bear Market Hits Climate Tech

    Revenge Startups – Yum!

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • VC Whiners

    Turns out having coffee meetings can be awfully stressful. Or so say some VC’s complaining of “burnout.”

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    From an article out today in Sifted:

    Thirteen investors that Sifted spoke to described seeking intensive professional help, taking months off work and having friends and loved ones cut ties with them due to the stresses of the job. They described having to be on call for partners at all hours, losing huge chunks of their free time to attend the “right” events and facing pressure to be constantly accessible through social media.

    Gee, were the canapés not up to snuff?

    Much of this stress is the result of intense pressure from a fund’s investors — limited partners — to produce good returns. 

    Let’s stop and ponder the absurdity of that statement. Producing good returns with LP money is precisely what the VC said they would do!

    https://twitter.com/rod_mallo/status/1648581719350472704

    If I own a shoe store, and you come in and ask me for a pair, should I complain of the pressure to bring you some Nikes?

    We VC’s and angel investors must remember we are in an enormously privileged position.

    When I was little, my mother worked as a home health aide for minimum wage. She hurt her back and had her achilles tendon run over by a heavy, motorized wheelchair.

    And I never heard her complain 1/10th as much as these millionaires.

    Being a VC is an unusual job. No one has to do it.

    So if you don’t want to do the job, I suggest you get out.

    Can being an investor wear you out a little bit sometimes? Sure.

    That’s when you shut down the laptop for the day and put on Better Call Saul.

    Do you get to the point where every pitch starts to sound the same? Yes, after a while.

    Then take a little vacation! If Twitter is any indication, VC’s spend plenty of time on the slopes already.

    We investors are lucky. We get to help decide what the future will be.

    Founders rely on us. They need capital, introductions, and advice.

    And their needs don’t always come during normal business hours.

    Jobs and livelihoods are at stake. We can either take it seriously, or we can start looking for another job.

    And let’s never forget that our work is dramatically easier than the founders’. They bust their butts on our behalf, day and night.

    We owe it to them to keep our complaints to ourselves. And if you ever hear me sounding like these folks in Sifted, please, give me a kick in the pants.

    What do you think of life as an investor? Leave a comment and let us know!

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    More on tech:

    Bear Market Hits Climate Tech

    To Riyadh, Hat in Hand

    Meet My Latest Investment: TANGObuilder

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

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  • Beef Tartare and More at Locanda Verde

    As I slid through the boisterous crowd, my mind was completely focused. Only one thing mattered: beef tartare.

    This is Locanda Verde, an Italian restaurant in Tribeca, New York City.

    Locanda verde means “green inn” in Italian. The name is apt — there’s an inviting rear garden.

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    “Have you been here before?” I asked the lady next to me.

    “Never.”

    “Try the beef tartare.”

    “I see.”

    Okay, I guess she wasn’t as excited as I was. More for your old buddy Francis.

    Soon, the mythical dish hit our table. There was only one question — if I grab for it instantly, will I seem gauche?

    Caution to the wind!

    I gobbled one of the little beef toasts, delighting in the savory flesh dressed with fine olive oil. The bread is an airy sourdough, a perfect complement.

    Eyes akimbo. Will anyone notice if I grab a second?

    It seems not. Perhaps my dinner companions were a bit put off by raw meat.

    Oh, there were other dishes. And they were superb.

    I particularly loved the pillowy ricotta, surely one of the house’s most popular plates.

    Nor is the mushroom pasta to be missed. The chef uses a mix of mushrooms, always the best way to show these fungi at their finest.

    And never forget cake!

    I contemplated a second piece of the chocolate tart, but even I couldn’t do it. I’ve failed you, I know.

    The tart is rich and permeated by the flavors of cocoa and espresso. There’s even a slight crust of powdered sugar, carmelized by torch.

    Locanda Verde takes the small things seriously.

    Why serve a tart when you can serve a bruleed tart? Why use one kind of mushroom when you can use three, each with a distinct flavor?

    It’s those little details that add up to a fine meal. My hat is off to Locanda Verde for doing honor to this food I love so much.

    What’s your favorite Italian spot? Leave a comment and let us know!

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    More on food:

    BBQ Stingray at Urban Hawker

    The Noodles Anthony Bourdain Dreamed Of

    The Pizza Princes of Grimaldi’s

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • BBQ Stingray at Urban Hawker

    “We should try the barbecue stingray,” she exclaimed.

    “Are you serious?”

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    Oh, she was. So on a recent New York evening, my friend and I found ourselves digging into something we never knew existed.

    This is Mr. Fried Rice at Urban Hawker. Urban Hawker is an outstanding Singaporean food hall in midtown Manhattan that was one of Anthony Bourdain’s last projects.

    Hawker centers are a tradition in Singapore, as well as Hong Kong and Malaysia. They serve simple, delicious food to people from all walks of life in a fun, homey setting.

    The food is so good that these tiny stands have won Michelin stars, normally reserved for fine dining restaurants. In 2020, UNESCO even listed the humble hawker center as part of the world’s intangible cultural heritage.

    Urban Hawker is the only Singaporean hawker center outside Southeast Asia.

    Our little hockey puck erupted with lights and vibration — our food was ready! In life, there is no moment more exciting than this.

    I gingerly carried the clamshell containers back to our table. Drop them and lose a friend forever.

    “When is she going to get back from the bathroom — and can I wait that long?”

    Her timing was impeccable. She slid into the booth and we popped open our containers, unleashing the smell of fresh fish and fragrant rice.

    The sauce was a wonderful surprise — redolent of hot chili and deeply flavorful. I was rather unsure how to eat the fish, so I started with the massive mound of rice.

    Each grain shined with crackly unctuousness. I crudely shoveled rice into my mouth like a bulldog at dinner.

    Okay, let’s figure out this fish.

    Stingray has a lot of bones. For Americans like me who are less accustomed to fish with bones, it can be a bit of a puzzle.

    But as I plunged my fork into its depths, it soon rewarded me. The flesh is delicate and toothsome with a slight whiff of the sea.

    My friend’s childhood in China seemed to have given her a distinct advantage. She surgically dissected the flesh with her fork, scraping the tines through the bones like a comb.

    “Ah, that’s how you do it.”

    It reminded me of when I took a Korean friend out for calzones. I neatly sliced mine and gobbled it down, smile on my face.

    After a few minutes, I looked over at my dinner companion.

    She had taken the calzone apart, turning it back into something resembling a pizza. Nothing had been consumed.

    “How do you eat this?”

    I guess she felt a little like I felt with that stingray. But for both of us, once an old hand showed us the way, we never looked back.

    For all its problems, this is why I love New York. People from every culture come together and eat good food and are happy.

    I hope we can do it for a hundred years. Cent’anni.

    What are your favorite restaurants? Leave a comment and let me know!

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    More on food:

    The Noodles Anthony Bourdain Dreamed Of

    The Pizza Princes of Grimaldi’s

    Chocolate Almond Croissant Paradise

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Bear Market Hits Climate Tech

    Raising money is hard these days. Even climate startups, a VC darling, are starting to feel the pinch.

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    From a Pitchbook report:

    In Q1, climate tech startups raised $5.7 billion across 279 VC deals, according to PitchBook data. That’s a 36% decline in deal value and a 31% decline in deal count from the previous quarter. From its peak in Q3 2021, quarterly deal value has fallen more than 50%. 

    Overall US venture funding fell only slightly in the last quarter. But it too is down over 50% from the peak in 2021.

    The bear market hit most startups hard in 2022. But climate tech held up better — until now.

    Bad practices purged from the market in 2022 continued in climate tech until recently.

    In February, I saw an uncapped note in a climate company. Even generative AI startups don’t seem to be getting away with that.

    These notes are a terrible deal for investors. You don’t even know what you’re paying for your shares!

    Running a financing like this will attract poor quality investors.

    Savvy founders wouldn’t do it, even if they could. They want the best people around the table, period.

    In a hot market, loosey goosey business practices proliferate. That sloppiness kills companies once the downturn hits.

    I expect to see numerous climate companies go bust soon. That said, they’ll have plenty of company.

    Long term, the outlook for climate tech is bright.

    The US wants our own energy, produced here, cleanly. That’s true regardless of the business cycle.

    Businesses and individuals also want to reduce their energy use. Energy costs money!

    If you can produce clean energy or save energy, you can find customers.

    I’m still excited about investing in climate tech. I’m mostly looking for SaaS products that can track and reduce energy use.

    That product should be easy to sell.

    The customer doesn’t believe in climate change? No problem.

    You believe in saving money, right? If you don’t believe in saving money, you’re not a businessman.

    I encourage climate founders to keep at it! Don’t worry about the macro environment — just build something great.

    What do you think of climate tech? Leave a comment and let me know!

    Have a great weekend everyone!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    To Riyadh, Hat in Hand

    Meet My Latest Investment: TANGObuilder

    Revenge Startups – Yum!

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • To Riyadh, Hat in Hand

    “We came to San Francisco looking for them in 2017. Now . . . everyone is coming to [us].”

    Ibrahim Ajami, Mubadala Investment Company (Abu Dhabi’s $284 billion sovereign wealth fund)

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    Every hour on the hour, a private jet filled with men in Patagonia vests is landing in the Middle East. What do they want?

    What does everyone want? Money.

    From a new report in the Financial Times:

    Top technology VCs such as Andreessen Horowitz, Tiger Global and IVP have jetted teams of executives to Saudi Arabia, the United Arab Emirates and Qatar in recent weeks, according to people with knowledge of the trips.

    These visits come after their traditional North American and European backers contend with an economic downturn that has forced them to rein in private investments.

    Here’s what’s going on.

    VC’s usual investors are US pensions and endowments. Those guys aren’t investing right now.

    Pensions and endowments allocate a certain percentage of their money to venture capital. A typical allocation might be 15%.

    But the rest of their portfolio, especially stocks, has been hammered in the past year. Since venture investments aren’t priced daily, those appear to have held up better.

    What happens when your stocks are in the toilet and your VC funds haven’t taken big markdowns? That 15% venture allocation has ballooned to 20%, 25%, or more.

    So, want to put more money in venture? Yeah, didn’t think so. You’re already overexposed.

    But on the other side of the table, VC’s have spent a lot of their funds. They invested rapidly in 2021, and need to raise again so they have something to deploy.

    If their normal investors (also known as LP’s) are out, who else is there? Who else has a giant pot of money?

    The oil rich nations of the Middle East.

    The Middle East is the only game in town for the big VC’s. And the folks in Saudi Arabia and the UAE — they know it.

    Now is a great time for them to get huge allocations in the finest funds. They should seize it.

    But should the funds take their money?

    Some governments in the Middle East have a poor human rights record. If it were me, I would never accept a dime from any authoritarian government, anywhere on Earth.

    I just don’t agree with their actions. And frankly, I didn’t need money when I started this business.

    However, there’s no reason to paint all of the Gulf with the same broad brush. Some countries are more forward thinking than others.

    If a government displays a commitment to treating its people with respect, we should be happy to do business with them.

    For smaller funds, the picture gets even more interesting.

    Governments aren’t the only ones in the Middle East interested in tech. There are also many wealthy individuals who want a piece of the future.

    If that person is honorable, I welcome the opportunity to do business with them, wherever they live.

    What do you think of tech in the Middle East? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this.

    More on tech:

    Meet My Latest Investment: TANGObuilder

    Revenge Startups – Yum!

    Why I Still Love Silicon Valley

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Meet My Latest Investment: TANGObuilder

    Housing costs are out of control. We all know it — but how do we fix it?

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    Construction delays are a major driver of costs. If only we could design buildings easily, get them approved, and break ground sooner!

    TANGObuilder makes that possible. This cutting edge software makes structural engineering a breeze. 

    Designs take less than half as long. Projects start months earlier.

    TANGObuilder’s approach is unique. CEO Martin Diz is a PhD aerospace engineer who noticed that structural engineering was decades behind aerospace.

    So Martin and his team took the best tools from aerospace and applied them to construction. TANGObuilder helps engineers avoid costly errors, cut unnecessary materials, and more.

    Martin’s unique insight and strong customer focus excites me. And so does living in a rock solid home that costs less!

    I’m delighted to be a new investor in this great startup. Check out TANGObuilder and build something great!

    What do you think the future of housing will be?

    Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    Revenge Startups – Yum!

    Why I Still Love Silicon Valley

    Seedscout: Where Underestimated Founders Win

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Revenge Startups – Yum!

    Over 300,000 people in tech have lost their jobs since 2022. And they’re out for revenge.

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    A revenge startup, to be exact. From a report out today in The Wall Street Journal:

    Jen Zhu co-founded Maida Health Inc., a startup that provides software tools for healthcare organizations, after her job as a senior manager of program development at Carbon Health Technologies Inc. was eliminated last year. “For me it was initially a sense of relief,” Ms. Zhu said of her dismissal, which made her feel like she “didn’t have an excuse anymore” not to pursue her entrepreneurial ambitions, she said.

    I love revenge startups! These founders have amazing skills honed for years at the best companies.

    But more importantly, they’re pissed off.

    They’re pissed off at the boss who fired them. And maybe they’re pissed off at themselves too — for waiting too long to follow their dreams.

    “I’ll show you!” is a powerful motivator.

    Give me an unbalanced, chip on her shoulder, slightly crazy founder any day! The calmest person isn’t necessarily the best entrepreneur.

    Even better, these revenge founders are recruiting at the perfect time. Great talent is more available than it has been in years.

    A few talented people and something to prove — that’s all a startup needs.

    Some investors are skeptical of founders who were laid off:

    “Wesley Chan, co-founder and managing partner at FPV Capital, a $450 million early-stage venture firm, says his firm has received pitches from founders affected by layoffs. “We always encourage them to pursue their idea but we are unlikely to fund it,” he said. “The startups that drive exceptional returns have been thinking of their idea their entire lives.” 

    I disagree. Did Elon think about electric cars all his life? Was Travis always focused on killing taxis?

    No. Elon and Travis worked on completely different businesses before Tesla and Uber (payments and file sharing, respectively).

    But what about this scary fundraising landscape? Don’t worry about it.

    I’ve seen companies run out of money completely and keep grinding. And I’ve seen others raise millions from the best investors and self-destruct.

    If you make something people want and stay focused, you can succeed! And you’ll never miss that cushy job at Google.

    Are you starting a revenge startup? Leave a comment and let us know!

    Great to be back!

    If you enjoyed this post, follow me for more like this!

    More on tech:

    Why I Still Love Silicon Valley

    Putting the Cart Before the Horse

    Ace Your Investor Meeting

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Why I Still Love Silicon Valley

    Every day, I read about another venture firm that won’t touch Silicon Valley. This is a mistake.

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    As VC’s and angels, we have one goal: invest in the next Uber. Or Snowflake. Or Google.

    Of the 100 largest tech companies on earth by market cap, 61 are in the US. Of that 61, 35 are in the San Francisco Bay Area.

    That’s 57% of US tech giants.

    It’s great to look at startups in many cities. But if most of what you’re looking for is found in City A, you have to look in City A as well.

    This is especially true now that valuations for Silicon Valley startups have fallen. From a new report in The Wall Street Journal:

    One of the biggest drivers of investing far from a venture investor’s base has always been the search for places where there was less competition for deals, said Olav Sorenson, faculty director of the Price Center for Entrepreneurship and Innovation at the UCLA Anderson School of Management.

     “The number of people writing checks right now in Silicon Valley has gone down,” Dr. Sorenson said, adding, “For those who are still investing, it makes it more attractive to stay local.”

    I have 19 investments and I’m finalizing a 20th now. 8 are based in the Bay Area, or 40%.

    This is below the historical representation of the Bay among megacorps. That makes sense because post-COVID, companies have spread out more.

    I suspect the trend of VC’s avoiding the Valley is driven by marketing. A venture fund has to distinguish itself from others in order to raise money.

    One way to do that is say “You know that place where most of the great companies are? We’re actually not going to look there.”

    It may help you raise money. But I doubt it will help you get a return on that money.

    This doesn’t mean founders need to be in the Bay. Show me any company in a huge market with rapidly growing revenue and a great product, and I don’t care if it’s in San Francisco or Sandersville, Mississippi.

    In fact, I think the best place to build is a small town. It lowers your burn, especially critical in a down market.

    You can supplement that with fundraising trips to Silicon Valley. Most investors are still there.

    As for me, I’m going to keep investing nationwide. Only a big net will catch a big fish.

    What do you think of Silicon Valley startups? Leave a comment and let us know!

    The next blog will be on Tuesday, April 11. I’m taking off for Good Friday tomorrow, and on Monday I have an acting gig! 🙂

    Have a wonderful Easter weekend everyone! 🐇

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    More on tech

    Ace Your Investor Meeting

    Which Accelerator Should You Choose?

    Putting the Cart Before the Horse

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Putting the Cart Before the Horse

    A founder’s time is the world’s most valuable resource. And every day, I see them waste it.

    Let me explain…

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    Investable vs. Not Investable

    All day every day, I get pitches from ambitious entrepreneurs. I love talking with them — but they usually have the same problem.

    Their company isn’t ready for investment yet.

    Their product isn’t finished. They have no customers. They have no revenue.

    And they all want to raise venture capital.

    I get it, we all need money! But consider the investor’s perspective.

    Every year, I look at over 2000 deals. I choose around 10, or 0.5%.

    At that point, I’m going to pick companies that are launched with some paying customers, right?

    It’s an easy way to narrow down the list. Paying customers also show they can build a product people want.

    Given the available deals, why would I put money into a company with no product and no customers? It just wouldn’t make sense.

    There is the rare investor who wants to invest as early as possible. But they seem to be even more elusive than the unicorn startups we’re all chasing.

    Capital Raised Per Hour

    Consider your precious time. For every $1 million in capital you raise, how many hours will it take?

    If you have a launched product making $20,000/month in revenue, perhaps it takes 200 hours to raise a $2 million seed. That’s $10,000 per hour.

    Now, what if you are pre-product?

    The odds of raising at all are very slim. Even if you did, it’s likely to be a much smaller pre-seed round of, say, $500,000.

    What if that takes up half your time for a year? Perhaps you’re working 70 hour weeks, and spending 35 on fundraising.

    That’s just $275/hour, about a 97% lower yield than the founder with some traction.

    What Do I Do for Money in the Mean Time?

    Accelerators are a great choice. They’re used to working with early stage companies and typically provide $100,000 to $150,000 plus a great network.

    But even most of them want to see a finished product. So get that out the door as soon as you can!

    But I Need Money to Build the Product!

    Time for the hard truth. If your team doesn’t have the technical skill to build an MVP, investors won’t touch it anyway.

    You can’t make a software company without people who know how to make software.

    But all is not lost!

    You can learn coding. And you can also use amazing no-code tools like Bubble to get an MVP out the door.

    Wrap-Up

    Raising money isn’t the best use of your time at the earliest stages. Especially in a down market, you’ll be beating your head against the wall.

    Do you want to have Zoom after Zoom that goes nowhere? Or do you want to build an awesome product and get some paying customers?

    Once you have that, we investors will be calling you.

    Best of luck!

    What are your experiences with fundraising? Leave a comment and let me know!

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