Tnx for sharing all the great stuff Nicolas! A few things come to mind:
I. Researching an under-studied corner of the market, where there's limited data (e.g. the classic question of people wanted a faster horse, not a car), but the difficulty is that you need to make many assumptions and therefore the margin of error can be huge.
2. Generalizing proof of concepts so that you build scalable solutions, now customizable projects.
3. Defining tangible milestones; ones that are meaningful for customers, investors and the company.
1. The crucial point is the reasonability and the measurability of your assumptions. Following benchmarks, best practices, local trends,... Having proven you and your team to be the best to execute, achieving benchmark KPIs should be easy :)
2. Good point here, I don't much to comment other than you must always keep in mind that you are building a product / service and you are not running an agency (project-based). User-requested customisation can be part of a beta-testing phase, but must thenceforth be priced at a premium (higher tier)
3. This is a tricky one too. The milestones you define are consensual between you and your investors. You need to be comfortable with them, and so must the investors. Set milestones that are ambitious and that you know you can commit to. If you overachieve, set new ones. If you underperform, analyse your failure and learn. It's always better to spot that you will not reach a milestone early on and address the issue up front and transparently with the investors.
One additional note re #1 is that I think it makes more sense when you take a bottoms up approach (e.g. slack, asana).
The problem with top down, specifically in a large enterprise environments, is that personal KPIs and agency costs tend to driven decisions rather than value. So if something is not under the proverbial streetlamp the chances of it being picked up are slim.
For early-stage investments, the rule must be to keep it simple. Don't overcomplicate it with the structure.
Converts/SAFEs are good because they are cheaper to implement and you get your money faster than with a proper equity round. However, they can be tricky if you need multiple of them, so keep that in mind (good thread here https://threadreaderapp.com/thread/1316754412111630342.html).
What's best for both parties is always what works for both parties :) But once again, keep it simple. You're at the idea stage, you can't have the same contracts as Google.
I've raised through converts a lot, and always found it efficient, cheap to implement, satisfactory for all.
1. The need to make a living while nursing a startup is huge burden because the process requires a lot of creative time free from distractions.
2. Finding people who can write at a professional level.
Nicolas, your teardowns have been a big help. I am working on a deck to introduce our marketplace and to help raise a pre-seed round. I have been at it for a month! If there's anyway that I could induce your to look it over, please let me know. Churn is a really good cause and it's compelling idea. Thx
1. Definitely, it's a daunting task to launch a startup if you have to work on the side to make a living. Also, professional investors will expect you to dedicate 100% of your time to the project. At this stage, if you have a product you can start building traction for, you might look into raising a small FFF round that could allow you to start working 50% or more on your project until you have enough traction and momentum to raise a proper round and go 100%.
2. If you're talking about professional copywriting for blogs/marketing material, there are many talented writers out there on Medium, even Fiverr/Upwork. Once you have vetted their work, it's an easy and cheap way to create content.
Regarding your deck, please reply to me directly from a newsletter email and we'll talk :)
Hello Nic. We are a boat rental marketplace in Colombia. We have faced several challenges as you might know. However, we habe encountered that users assumed the boat charter is only for rich people which is not. We feel there is lack of knowledge about the sector. What would you recomend so we can switch that perception. Thanks.
Tnx for sharing all the great stuff Nicolas! A few things come to mind:
I. Researching an under-studied corner of the market, where there's limited data (e.g. the classic question of people wanted a faster horse, not a car), but the difficulty is that you need to make many assumptions and therefore the margin of error can be huge.
2. Generalizing proof of concepts so that you build scalable solutions, now customizable projects.
3. Defining tangible milestones; ones that are meaningful for customers, investors and the company.
1. The crucial point is the reasonability and the measurability of your assumptions. Following benchmarks, best practices, local trends,... Having proven you and your team to be the best to execute, achieving benchmark KPIs should be easy :)
2. Good point here, I don't much to comment other than you must always keep in mind that you are building a product / service and you are not running an agency (project-based). User-requested customisation can be part of a beta-testing phase, but must thenceforth be priced at a premium (higher tier)
3. This is a tricky one too. The milestones you define are consensual between you and your investors. You need to be comfortable with them, and so must the investors. Set milestones that are ambitious and that you know you can commit to. If you overachieve, set new ones. If you underperform, analyse your failure and learn. It's always better to spot that you will not reach a milestone early on and address the issue up front and transparently with the investors.
Tnx Nicolas. Appreciated and Agreed.
One additional note re #1 is that I think it makes more sense when you take a bottoms up approach (e.g. slack, asana).
The problem with top down, specifically in a large enterprise environments, is that personal KPIs and agency costs tend to driven decisions rather than value. So if something is not under the proverbial streetlamp the chances of it being picked up are slim.
KNOW HOW TO DECIDE WHAT TO OFFER THE 1ST INVESTOR WHO BETS ON YOUR IDEA.
50% IN EQUITY AND 50% IN CONVERTIBLE NOTE WOULD BE FINE? OR A SAFE PROPOSAL WOULD BE BETTER?
BUT THE QUESTION IS WHAT IS BEST FOR BOTH PARTIES?
THANK YOU VERY MUCH
For early-stage investments, the rule must be to keep it simple. Don't overcomplicate it with the structure.
Converts/SAFEs are good because they are cheaper to implement and you get your money faster than with a proper equity round. However, they can be tricky if you need multiple of them, so keep that in mind (good thread here https://threadreaderapp.com/thread/1316754412111630342.html).
What's best for both parties is always what works for both parties :) But once again, keep it simple. You're at the idea stage, you can't have the same contracts as Google.
I've raised through converts a lot, and always found it efficient, cheap to implement, satisfactory for all.
1. The need to make a living while nursing a startup is huge burden because the process requires a lot of creative time free from distractions.
2. Finding people who can write at a professional level.
Nicolas, your teardowns have been a big help. I am working on a deck to introduce our marketplace and to help raise a pre-seed round. I have been at it for a month! If there's anyway that I could induce your to look it over, please let me know. Churn is a really good cause and it's compelling idea. Thx
Hi Jeffrey!
1. Definitely, it's a daunting task to launch a startup if you have to work on the side to make a living. Also, professional investors will expect you to dedicate 100% of your time to the project. At this stage, if you have a product you can start building traction for, you might look into raising a small FFF round that could allow you to start working 50% or more on your project until you have enough traction and momentum to raise a proper round and go 100%.
2. If you're talking about professional copywriting for blogs/marketing material, there are many talented writers out there on Medium, even Fiverr/Upwork. Once you have vetted their work, it's an easy and cheap way to create content.
Regarding your deck, please reply to me directly from a newsletter email and we'll talk :)
Hello Nic. We are a boat rental marketplace in Colombia. We have faced several challenges as you might know. However, we habe encountered that users assumed the boat charter is only for rich people which is not. We feel there is lack of knowledge about the sector. What would you recomend so we can switch that perception. Thanks.