Scott Ashmore’s Post

We've been building a powerful "Founders love Founders" machine over here at Massive since the beginning. The capital we invest comes from a great group of builders and operators across a number of domains. David Mandell and I are founders ourselves, (yes we walk the talk and put our own money into every investment), so this has always been in our DNA and and also part of how we deliver outsized value to our portfolio. I know I have my bias here but I'm not optimistic that big name firms raising from founders out of desperation due to Inst. LP pull back are going to get this right, or continue to lean into this when the big LPs come back and want to get into these funds. Founders working with founders to build great companies over time requires more innovation and adaptation than just tapping into the capital in a tough market. That said, nice to see people talking about this and we know this is where the future of venture is going. Someday soon these mega funds will suffer their own version of innovators' dilemma and be out maneuvered...

Pitching VCs has never been my favorite part of startup life. But the fun thing about doing your third (or in many respects, fourth/fifth) startup is that you've figured out how to approach things in a way that you feel good about. For better or worse, Tyler and I both strongly believe in transparency and honesty. We sell in a way that tries to add value to our customers, and we're talking to VCs in a way that tries to highlight where we truly believe where we're strong, and we even shine a spotlight on our weaknesses (one investor asked us what our weakest attributes were and I rolled out my list of the 14 things I had previously written down as my weakest attributes and started going over them). We have many strong beliefs loosely held, a handful of very strong convictions about where the market is going (autonomous agents 𝐰𝐢𝐥𝐥 change the world of software), and some interpersonal values that are absolutely non-negotiable. I don't know if we're going to be able to raise. If we don't, that's fine, I'm going to continue grinding away at autonomous agents for SaaS until I reach success. But if we do, then at least we know it'll be with the right folks — folks who are not only excited about the massive capabilities that reasoning-engines open up, but are also down-to-earth, humble investors who can have hard conversations in a thoughtful manner.

We're raising a seed round and this time my co-founder and I are doing it differently. 1. Less slides, more chats. Shanif and I know from doing this dozens of times that the most compelling and thought-provoking conversations with Venture Capitalists are just that... conversations. We're trying to spend as much of our time in these meetings having thoughtful debate about the opportunity at hand. If you are presenting slide decks at someone, it leaves very little room for that. So we send the deck in advance and use Loom to record a voiceover of the slides. 2. Less BS, more authenticity. With my first few VC fundraises, I thought success was leaving the meeting having answered every single question. Now I realize that pretending to know everything is a waste of everybody's time. Early stage investing means risk so let's not pretend like we know with 100% certainty everything that's going to transpire. I would much rather have an authentic conversation about what we don't know than try to check every box. Whoever we bring on is going to be with us for the long haul. So we better establish trust as the foundation from the get-go. (caveat: you obviously need to have answers to important items you have conviction on. But having an answer to how you're going to eliminate every possible risk is nonsense). 3. Be willing to walk away. We're fundraising because we believe we have a big opportunity here, not because we need the money. Shanif and I have both had successful exits and know that bringing on the wrong partners simply because you need the cash is a recipe for disaster. I'd much rather bootstrap the company for another year or two than put a ring on it with someone I don't want to build a business with for years to come.

Time to peek behind the curtain! Really useful if you're new to early stage investing, or just wondered what investors were looking at when they reviewed a deck tomorrow **27 June at 12pm BST**. We're doing a live deck review for Umazi.  A due diligence platform that becomes a digital due dil passport for individuals and organisations wherever they need to prove their identity.  Already has some early validation and they are raising now with preferential terms for early-stage investors Join us as Cindy van Niekerk gives us a brief elevator pitch of what she's doing before 3 Angels (and me) run through the deck as a stream of consciousness as a collab between Diversity-X, Raise Ventures and Magic Sauce Online.  Three organisations committed to getting more underestimated founders funded! There'll also be time for some Q&A with the founder afterwards. Grab a coffee, a bite to eat and join this virtual session to get into what investors are looking for when they see a deck. Drop a DM with your email for an exclusive invite to this free event. #lunchandlearn #startupstories #angelinvestment

"Equipped with the tools to turn dreams into reality! 💰 wrapped up my course in finding funding in 2022, armed with strategies to secure the resources needed for my next big venture. 💼💡 #FundingSuccess #DreamsToReality #EntrepreneurialJourney"

Creating a compelling pitch deck is more than just a formality; it's your opportunity to captivate investors and pave the way for your startup’s growth. 📈 As Cohort #1 of the #ClimateXAccelerator slowly comes to an end, we got Christoph Rohde to share some gold nuggets on what you should include in your pitch deck when approaching investors. As the Transaction Manager at FASE, Christoph is well-aware that investors say “no” more times than they say “yes”. However, don’t be discouraged… Since 2021, Christoph has supported pre-seed and seed impact ventures in raising over 15 million Euros in funding. So it’s safe to say, he knows how to sway investors! ✨ ✔️ Make use of these insights to enhance your pitch deck with elements that will convince investors to say "yes" to joining your startup’s journey. 🚀

❤️Feeling a lot of love and gratitude atm ❤️ We reached our minimum capital raise requirement from inbound interest within 2 business days of talking to our supporter network about our plans and it looks like we'll lock in the max very soon too! ☠ IMO if you are building your deck in a silo and spraying it to investors cold you are doing it all wrong. ✅ Consistently updating against your key milestones and opening two-way conversations around those updates is the only way to go in today's funding environment. Can't wait to help hundreds of other founders display their stories of progress to investors and create their own competitive tension 🚀 🚀 👀 We're building out in the open too - you can find out what we're up to here: https://lnkd.in/gzE_Gd69 #angelinvesting #startups #community

During a session on funding methods at Creative Destruction Lab Super Session today, the presenter asked what the audience believed is the chief motivation for VCs. One founder quipped that it's raising their next fund. I actually think this is a brilliant observation. Here's an example: a founder raises a good series A and sees a path to profitability without raising again. It'll be a little slower but ultimately more sustainable and a better exit for early investors. But... The series A lead is raising their second fund and needs to show a positive track record. With no exits yet, that track record will be built on the back of portfolio company markups, which can't happen without new, higher valuations from subsequent rounds. So we have a conflict of interest that can lead to substantial friction, and possibly serious problems for the founder if they don't still have a majority stake. Food for thought for founders.

Here’s a little startup secret: Want to get better at fundraising? Start angel investing. Why? - Angel investors build trusted networks of investors, making it much easier when it’s their turn to raise. - Angel investors get to observe other founders pitch and pick up on the things that work well. - Angel investors get an inside look at effective processes for fundraising. Founders should learn to think like angel investors.

Excellent advise from Brian Nichols to all founders and startups. It's always a good thing to have insight about what the other side of the table is thinking to craft your pitch! #startups #founders #angelinvestment #angelinvestors #advise #insight #fundraising