what should startups look for in investors, other than money?
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Transcript of what should startups look for in investors, other than money?
What should startups look for in investors (other than money)?
SouthStartConf 2013
Leni Mayo
@lenidot
This question isn’t asked often enough
What does Google think?
The world is changing
Lets assume you are
• An investable startup
• Raising money for sensible reasons
• Tons of caveats … we’ll get to those later
The working relationship lasts longer than the money
Interpersonal aspects
• Trust
• Empathy
• Patience
• Adaption
• Perspective
• Mirroring
• Has time, responds
Human naturebeing what it is
sometimes,
what we want
isn’t what we need to grow
Where am I going to find these paragons?
Positive Signals
• Prior startup founder experience
• Endorsements from other startups
Lead Investors vs Followers
Lead Investors
• Step up first
• Set the price and terms
• Take a meaningful piece of the round
• (often) represents the round on the board
Followers
• Rely on the leader for pricing, terms, diligence
• Are easier to find than leaders
Reputation
“If I had a startup and Steve Jobs wanted to invest in it, I'd give him the stock for $10, just to be able to brag that he was an investor”
– Paul Graham, “How to fund a startup”, 2006
Megaphone
During Courtship
• Where are we heading (vision)?
• How are we going to get there (route)?
– steps along the way: profitability, growth?
– need / want more capital down the road?
Caveats
Aussie startup thought leadership comes out of USA
Don’t drink the koolade!
(Your circumstances and ecosystem are different)
MediaVC
Accelerators
In Australia
Raised money early:
• Seek
• FreeLancer
• TechnologyOne
Bootstrapped:
• 99designs
• CampaignMonitor
• HalfBrick
• (Internode, iinet, Northern Territory? Tasmania ?)
What’s right for you?
Credits
@chrisdahl@ivanlim@jamessmacgregor@michaeldewildt@shandsaker@sw@tomhoward
Questions?
@lenidot
moniker.net