2012 in Tweets
2012 was probably my quietest year on the blogging front with only 44 posts. Turns out being a VC is more time consuming and demanding than I ever imagined. All good. Still, since this is the first post of the new year, like always, I am beginning by looking back.
Without further ado, I have pulled the key insights or messages from each of those posts into a tweetable takeaway. Enjoy..
Getting Funded
Don’t let VC meetings “happen” to you. Conduct them and take charge to make sure you get the next meeting
Know what it takes to raise Series A funding. Manage seed cash to achieve the needed milestones
Do you want investors (ie just money) or do you want partners to help you grow? Know before you raise
VC cheque sizes are getting smaller. It takes more investors to raise a round these days
Assume you will make mistakes. Lots of them. Give yourself the time and money needed to screw up
Most businesses are not right for VC. Know what they look for before you approach them
Have all key documents organized and ready before you approach investors
Don’t go venture fairs or conferences to meet potential investors
Choose a capital source that is aligned with your long term goal for your business
It’s possible to keep legal costs low. Just follow these steps
Team, Vision and Traction – the holy grail of getting funded
Mentorship, networks, access to capital. Use these criteria to choose the right accelerator
VC Industry Thoughts
The future of VC is adding real, measurable value to the portfolio every day. It’s not about board meetings, it’s about operations
The Canadian VC industry is in great shape right now. More funds, investments and exits than ever
Growing Big
It’s not competition (or lack of it) that matters. It’s how much better you are than alternatives
Understand how customers make purchase decisions in order to close more sales faster
Choose mentors who make you better at what you are already best at. Maximize your strengths
In today’s hot talent market, employee benefits are more important than ever. Invest in them
It’s so easy to start something. It’s much harder to keep at it and go all the way. Stay focused
In most cases, white labeling does not make sense for startups
Treat all advice as “inputs”. Process them and make your own decisions. You should know what’s best
To keep your best team members focus on alignment and opportunity cost. Give them a role that fulfills them deeply
Some of Canada’s biggest startups began as services businesses. A great way to understand customer needs and fund early development
Customer churn is not the same as revenue churn. Measure both to get a handle on why customers leave
Only use part time execs to fill non core roles like finance
Learn from Yammer. Get forgiveness not permission from the IT department
It makes no sense to *not* spend on marketing. Unless you don’t want to grow
Fancy titles for early stage startups are silly. Choose functions over titles
You cannot save your way to greatness. Invest to build the growth and momentum needed to secure additional capital
Productivity
Don’t schedule yourself out too far in advance. Maintain maximum schedule flexibility since priorities change
It is a biological fact that sustained, long term stress is harmful to us. If we are always on, we will inevitably drain ourselves
Do fewer things, but do them all the way
Exiting
Startups are sold not bought. Build your exit strategy just as you build your product strategy