Thank you to Pablo Fernandez of Flexpoint Tech for creating these notes. To contribute to the TWiST PodNotes archive email us.
- Fundraising is a full time job.
- Be careful when raising from friends and family.
- Understand how SAFE and convertible notes work.
- Keep the accounting of your company clean:
- No personal expenses in the business.
- No money from a third party that is not documented (loan? investment?)
- Clean P&L.
- Amortize your expenses correctly.
- Salaries should be correctly categorized.
Table of Contents
- Jason Demant: went through Launch Accelerator, and he's now the managing director.
- Ashley Whitehurst: managing director of Syndicates at Launch
Should founders bootstrap or fund raise?
Fund raising is a path for very few startups, most business are bootstrapped.
Business fall in one of two categories:
- Lifestyles: they might be good for founders, reaching valuation of $30m, but VCs need higher valuations.
- VC-scale: more than $100m in revenue with great margins, more than 30%, ideally more than 50%.
VCs want to see an exit in 7 to 10 years and it should hit $100m in revenue before then.
Should I start with friends and family?
You have to be careful that the loss of the money won't destroy the relationships.