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The HustlePan-European Network Vertical Focus Coverage
Cross Border FinTech
Next-Gen Infrastructure & Security
Mobile Marketplaces
Strong Companies in Leading Geos
Strategic Relationships with European Teams
Mind Share Within Europe
Shared Global CRM
8,000+ Tracked companies
Calls with founders
Meetings
2,000+
1,000+
21 3
Dealfow = Lifeblood. Mostly outbound.• Portfolio companies act
as local “Accel Ambassadors”
• Organization focused on uncovering opportunities early
• Methods: AppAnnie, Mattermark, systematic press coverage (new products releases, awards, HN etc)
• Strong local presence: hosted over 500 entrepreneurs across 10 events in 9 cities over the last year
Reality check
You are trying to get the attention of people who have 8 - 12 meetings per day and may not remember your name
At any time you are competing with:- 10+ other projects inside a fund and - 100+ startups in the market at large
Efficient time management is the #1 skill required to survive as a venture capitalist
1: Completely Disagree 10: Completely Agree
Survey Results97 responsesBias towards early stage
Over 50% found the process of raising VC confusing, opaque and frustrating
How many investors did you meet ?
28% met less than 5 Investors 59% met less than 10 Investors
How long did it take ?
66% spent more than 3 mo26% spent more than 6 mo
Star Investments
Recent activity
Board Load
Cultural Fit
“It was clear to me which partner I should approach at a given firm”
All about the right partner
1: Completely Disagree 10: Completely Agree
Number of Accel-funded startups where contact came from cold email
1
“I managed to get meetings only through introductions”
Sometimes … cold emailing works
So what ?
Intellectually lazy
Pattern recognition pushed too far
Lesson givers
Know it alls
“In general, the VCs I met displayed a strong grasp of my business”
What an indictment of European VC !
Invaluable insights
Inspired to excel
Kicked my butt
Some VC's offered advice and insights that I found very meaningful to my business
Common theme : some VC’s stand out … in a sea of mediocrity
28%Burnt
What characteristics matter most to you in a VC ?
TrustworthyEntrepreneur Friendly
Quality and Depth of NetworkExperienced
SupportiveTrack record of success
Risk TakingCollaborative
Global Platform / Global ReachVisionary
Hands-On and EngagedInfluentialAnalytical
ExpertThought Leader
InnovativeEmerging, rising star
0 17.5 35 52.5 70
Process was transparent and fast
Process opacity drives entrepreneurs mad“Founders don’t care about difficulties, they complain about unkowns”
I got a clear no
Entrepreneur’s VC turnoffs
Approach Engagement Behavior
Intellectually Lazy
PatronizingTell you what to do instead of asking
questions
Know-it-alls
ADDDo not take time to understand
Lack of risk taking mentalityFocused only on financials
ARROGANT
Cold
Unapproachable
Unresponsive
“Radar Play”
Send young attractive associates at events playing interested and driving endless follow-ons
ARROGANT
Not responsiveSlow
Unprepared
Checking email !
Playing for time Hanging around the hoop
Fund competitors
Aggressive on terms Bait-and-switch
ARROGANT
21 3
16
Now What ?
“Overall, I've met with pretty nice people. Most of them are lazy/dumb as f*ck and spend too much time in networking events/conference, drinking champagne, living off their management fees, but they’re friendly :) So the worst that happened was probably agreeing to countless meetings where VC's would just squeeze market info, without real appetite.”
Get in
Do your Research
Don’t
Get the introCrunchbase / Angellist / LinkedInInvestments led
Leverage the junior guys Map them on LinkedIn
Invite me on LinkedInHassle me on TwitterInvite me for coffeeUse other naive methodsGet upset if I don’t respond to unsolicited email
Target the individual not the firmFounders are bestPeople in your sector are goodPersonal friends work wellMulti-target the same person
Get noticed Blogger pressProduct HuntAwards are OKAccelerators are OKClients / traction are best (duh!)
Leverage the introShort, focused emails / TL;DRSeduce and intrigueGenerate tension if you are raisingBe persistent
Fundraising facts
Fact 2: You are talking to too few investors
Fact 1: Inbound Marketing Wins
21
Fact 3: You are over-estimating your chances of success
First call or meetingTurndown 75%
In-depth meeting
Engaged process
Turndown 50%
Turndown 75%
Turndown 50%
Turndown 50%
Partnership presentation
Term-sheet presented and deal done
1,000 teams
250 teams
125 teams
30 teams
15 teams
Illustrative Funnel
John Accel 2. In-depth meetingDestin Concerned about US
Fundraising is a campaign
Steve Index 1. First MeetingRimer Scheduled 5/30
John Sequoia 0. Intro MadeBotha Chase 5.27
Mark L. A16Z 1. First MeetingJordan Scheduled 6/12
Intro Fund StagePartner Status comment
…
SteveDST Seeking IntroLindfors To Do
Some founder pitch advice
Dry run with friends + Train on 2 shitty funds
Know your metrics cold
Your pitch must be perfectly prepared so that
Understand your audience
Know your unit economics coldKnow your risks and be open about them
Be exciting and memorableBe brave, confident and totally honestEnjoy yourself - good humour is contagious
You can deviate effectivelyYou can focus on the audience’s reactionsYou can always stay on track
DON’T
Pitch the marketPitch the competitionGive long answers to questionsGet sidetracked for too long Fear silence
Get funded (vs. being right)Get to the next meetingCreate relationshipDetect toxic investors
YOUR OBJECTIVES
Level Up - Hacks
Build intangible value : visible board, visible advisorsPractice concerted pitching
Give anyone an excuse to say noGive overly punchy price guidanceMiss any short term numbersHide bad newsBadmouth the competition
Disclose widely that you are fundraisingDisclose who you are talking to
Treat bad offers seriouslyEver take money from assholes
Engineer regular, personalized progress points Pace news flow (e.g. new customer wins)Engineer tension in the process (at the right time)Work to (credible) deadlines
Frame the market yourself & reframe questionsPrepare the data ahead of time (e.g. cohorts)Practice data rationingVolunteer diligence contacts
DON’T
And remember … everyone starts small
Drew Houston and Arash Ferdowsi's apartment in 2007
Mike Cannon-Brookes and Scott Farquhar’s first office, based out of the local Kinko’s
Sachin Bansal and Binny Bansal in 2008 at their first office, which was also the warehouse
Ilkka Paananen sitting at his cardboard desk in 2010
Mark Zuckerberg’s dorm room in 2005 where the first versions of Facebook were built
Girish Mathrubootham in FreshDesk’s first office where rent was $160 per
month
Cloudera founding team in their first office in 2009
Stewart Butterfield working out of Tiny Speck’s first office in 2010
Be a VC - happy founder
1. Being turned down is the norm
2. You can build (real) relationships
3. You are part of an ecosystem
4. Pay-it-forward
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