Things I’ve learned in venture that I wish I had known as a founder

I’m three months into my life as a VC. According to people who know, this means that I’m about halfway to having even the slightest idea what I’m doing. I’m also close enough to remember what it’s like to be on the other side of the table. These are a few things I’ve noticed that I don’t think were super clear to me about VCs when I was pitching them.

Traction is an essential element of generating interest from a seed-stage fund, but you need more in order to get backed.

Traction, for many “seed stage” firms, is table stakes. It’s impressive and it will likely at least get you a meeting, but you’ll need much more to actually get them to write a check. You’ll need to be a fit for their investment thesis, their stage, and, honestly, they’ll just have to like you. Then again, what even is a seed stage fund anymore?

When I was an entrepreneur, I knew that traction was important, but I did not describe it convincingly because I didn’t know how strong a shortcut it can be to credibility.

It is much clearer to VCs whether you are a fit for them than it is to you.

It takes a smart, experienced VC about 10-seconds to know if you’re a good fit. Don’t wait so long to move on if they don’t like you back.

When I was an entrepreneur, I chased more long-shot VC crushes than I’m willing to admit.

Don’t sent a deck until you feel at least 80% sure that the VC would at least conduct diligence.

Getting a VC on the phone is not a win. “Sure, you can include me on your monthly update” is not a win.

As an entrepreneur, I sent decks to everyone. Having seen this from the other side, I am stunned and thankful by how genuine, helpful, and nice most of the later stage VCs I pitched were to me.

The more specific you can be with your investors, the better-equipped they are to help you.

Seriously — ask for a particular person you want to talk to. Make it as easy as possible for them to help. Even if they’re not interested in funding you, most VCs are nice enough to help you out with a connection or smart enough to know that karma exists in venture.

I was guilty as an entrepreneur of making very generic asks: “Do you know anyone who can help me think about our sales strategy?” instead of “I see that you’re connected with [SALES PROSPECT]. Would you be willing to put me in touch?”

Venture economics

Do yourself a favor and learn it. There are more qualified sources than me to give the crash course. See here to start.

tl;dr: There’s actually a good reason for VCs to take big swings on seemingly ridiculous ideas while ignoring solid businesses that make money.

Needless to say, I did not understand this math when I was pitching.

With all of this in mind, it’s important to remember that…

They still want desperately to fund you…

… If you’re actually as solid as you think you are. After all, VCs need you to succeed just like you need them.