CAPTURE HIGH’s Post

A must listen for Founders and Entrepreneurs!! Stop running after VCs focus on building your business first!

Agree 100%. Ideally founders would choose “good money” with a value added board, but the old saying “beggars can’t be choosers” comes into play and that can make it like the example given by Vinod. An investor says at a board meeting “You need to improve quality”, then 5 minutes later “you need to ship faster”, then 5 minutes later, “you need to reduce costs”. My grandmother could tell me that! Some founders might not be experienced enough and when an investor says jump, they just jump and don’t even ask how high. If the CEO doesn’t filter those inputs and use their own prioritization and judgement based on what the customers truly need, many things get started with no follow up or follow through, so few things are actually completed well. The result is that many band-aids are put in place rather than real problem solving with corrective and preventive measures and the organization gets in a perpetual fire fighting mode. Once an organization gets into that situation it is very difficult to get out of.

Let say that any startup that wants to follow the VC way should fully understand that with the funds there are a lot of conditions and rules and on the middle and long term his can be very damaging to the start up business. Many so called VCs are also just schemes to play with money to maximise their own profits... Tech start ups should be very very wary of using VC funds when new ways to do fundraising are appearing in the digital tech space

Who can you trust on what topic? It's ok to panic sometimes. There are situations where panic is the appropriate response! But before you do.... get still and get clarity. 1) WHICH RISK ARE YOU CONSCIOUSLY TAKING ON  It's like 'Whack-a-Mole" with the number of decisions you have to make, and when you are dealing with so much uncertainty and ambiguity it's key to become aware of one thing at a time: Which risk are you taking? Are you taking on a financial risks, legal risk, marketing risk, existential risk? The single hardest decision you will make is whose advice to trust and on what topic. 2) WHICH ADVISORS DO YOU HAVE WHO HAVE EARNED THE RIGHT TO HELP YOU WITH THIS DECISION Who adds value to what you are trying to build? Do they add 'negative-value'? Who had personally dealt with all the hardships and uncertainty that you deal with? Who has stayed awake at night worrying about making payroll? How close have they been to being insolvent / going bankrupt?  Have they faced the same gut-wrenching decisions that you face? Have they had to make the trade-off calculations you are forced to make between: Quality, Speed, and Price? Do we add staff and increase the burn-rate? Which initiatives improve our chances and which are distractions? 3) PICK THE RIGHT PERSON TO HELP YOU MANAGE THE RISKS INVOLVED IN THAT DECISION 1. Take a minute to get clear on what risk it is, and what you actually need 2. Get clear on what type of decision it is 2. Qualify the people you pick by ensuring they have dealt with that decision under ambiguity before Good stuff!  https://lnkd.in/gQ3QhkxB

90% of VC events and conferences are equally wasteful. When you find "advisories" concealed in all forms of offers of their services, it is a waste of everyone's time. DeepTech startups and founders are least understood by VC and my advice to such founders would be to invest your time in creating content to talk to your buyers and not invest anything to please investors. It is just impossible to convince an investor through an investor approach. Just focus on your customers and money will follow.

Choosing the right board is something that should be discussed more in the start up world. Do you have the right people that will add value and help during the cold dark days?

Most VCs don’t add much value ( I posted 10 mo ago ) https://lnkd.in/gKXfFKMZ - 33% of founders said that they felt VCs simply weren’t honest about the expertise they could offer - 65% said VCs missed mark delivering beyond cash  - Female founders rated value-add as twice as important than males - Value-add includes connections to partners, customers, talent, sharing knowledge Lean AI startups are still the new black get angels + grants + perhaps family office for MVP with good initial traction then with CVP after crossing $100K MRR raise seed at 3x valuation of pre seed from VC's then race to get to $10M ARR in 2 years with $100M valuation with awesome cap table where VC's own 20% max. Cheers..Steve AI startup advisor 'force multiplier' https://lnkd.in/g38mWcs

Vinod Khosla's statement is a bold one, and the truth is likely somewhere in the middle. Here's a breakdown: The Claim: ~90% of VCs add no value to startups. ~ 70% of VCs even harm them. Nuances to Consider: Selection Bias: Khosla is a successful VC himself, so his perspective might be skewed towards the best VCs who add significant value. VC Quality Spectrum: VC firms vary greatly. Some offer valuable guidance, connections, and expertise, while others simply provide funding. Startup Mismatch: Not all VCs are a good fit for all startups. A good VC should understand the specific industry and growth plans of the startup. About VC experience: While not all VCs have directly run companies, many have experience in relevant fields (engineering, finance, marketing) and have worked closely with startups. The value of a VC goes beyond just understanding the intricacies of the product. They can offer: Guidance: Strategic advice, mentorship, and connections. Market Knowledge: Insights into industry trends and potential customers. Network: Introductions to potential partners, investors, and talent. However, Khosla's point about performance pressure without understanding the complexities of the business is valid. Here are some additional thoughts: * Startups often require a balance between focusing on long-term growth and achieving short-term milestones for investors. * It's crucial for startups to choose VCs who understand their specific needs and are patient with the development process. Overall: * Don't take Khosla's statement as absolute truth. VCs can be valuable partners, but it's vital to find the right fit for your startup. * Look for VCs with relevant experience, a good track record, and who understand your specific industry and goals. * Don't be afraid to walk away from a VC who doesn't seem like a good match. #VCValueDebate #StartupFunding #KhoslaEffect #StartupGrowth #BeyondTheMoney #VCExpertise #FoundersFirst #VCPartnership #ExperienceMatters #IndustryFit #LongTermVision #ShortTermMilestones #GuidanceOverPressure #MentorshipMatters #BuildingTogether #StartupSuccess #RightFitVC #InvestorAlignment #SmartFunding #StrategicInvestment

Absolutely true. To fully understand entrepreneurs you have to be an entrepreneur yourself. Not even a parttime one. Only fulltime, committed. It’s a totally different mindset. I knew so many people who advised and even judged entrepreneurs without having a clue what is all about. Doing a business is a rollercoaster, running a startup is a rollercoaster without rails, a free fall without parachute. It’s a survival game.

Startup folks pls listen to this.