When you have no track record

I was speaking last week with a VC that was telling me his fund is no longer backing 1st time CEOs. In his particular case it makes sense. They’re late in this current fund and it’s not the time to take flyers or excess risk. Still, it got me thinking about what you can do as a 1st time founder / CEO to improve your chances of getting funding.

Target the right audience

Don’t goto Sequoia or some other top fund that can pick the best of the best. Start with more modest targets in mind. This could even mean starting with friends and family.

There are angels and seed funds that specifically look for young, fresh companies and are willing to back unproven entrepreneurs. Montreal Startup here in town is a perfect example of this.

Start small

Ask for a small seed round and prove your ability to deliver with that. Then raise a proper series A.

Start early

You can’t create track record out of thin air, but you can help yourself by building relations with investors long before you actually fundraise. Socialize yourself and the company with the investor community. Tell them what you plan to do. Come back to fundraise when you have done or are doing what you said you would. This builds track record.

Surround yourself

Get mentors, advisors, etc that have relationships with the investor community. Not only will they make you better, but they’ll make important intros and provide references when the time is right.

Remember, there are no rules

While everything I have said above (I think) makes sense, 1st time people do get funded – especially on the west coast. Larry, Sergey (Goog) and Mark (FB) were unproven nobodies before they raised. So, if you truly believe in yourself go for it. Just expect an uphill battle (like every other aspect of building a company…).