Venture Highway

So, we are assuming that you’re a new founder. And as usual struggling with multiple things at your startup.

How will I get my first few customers?

How to manage all work with just the founders as a team?

How do I connect with the investors? What’s the right way?

Well, don’t worry.

HelloMeets had the privilege to have Utsav Somani, India Head, AngelList, Prakhar Aggarwal, Indian Investment Officer ,Vilclap Investments and Karan Kumar, Venture Highway to join us for HelloBreakfast, Breakfast meetup with one of the top investors in the city where they help startups with:

  • Customer interviews
  • Tips on building Great Startups
  • Understanding your Competitor space
  • Investor terms sheet details
  • Various source of raising money

Here are some basics shared in the session which may help the early founders and future founders work better:

Speak to as many customers as you can

  • Do lots of customer interviews. You never know what they want.
  • Check what makes sense according to business. B2B or B2C
  • At least meet 100 customers Face to Face
  • You can reach out to your customers through various online and offline channels
  • Keep iterating your product / service according to them

Do your Paper Work on time

  • Legal Advisor — Startups must ensure legal compliance from day 1 so that they go through a smooth investment process when they are raising funds
Note: A private ltd company is most suited for raising funds.
  • When raising funds, learn about your term sheet. There are many startup friendly lawyers you can get from different platforms. For example: Lawyered — with Lawyered, you can book appointments with startup lawyers and discuss your legal doubt in person

Choose the right investors

  • Do a deep homework on the investors you are about to pitch

Check the following -

1 Portfolio companies.

2 Their network (For example : You have a B2B startup, and there’s an investor who has huge corporate clients network, that might be useful for you).

3 Your industry experience and insights.

4 Meet the founders of their portfolio companies. Ask if they are founder friendly or not.

5 Last but not the least, do build relationship & trust with the investors.

6 Get a term sheet in hand and then decide if you want to raise or not. Always look out for advise from people who understand your business.

The best investors are those who help you and invest time in you even before funding talks initiate.

Don’t waste your time attending big events, exchanging visiting cards. A connection is of no use, if you haven’t build a true relation and trust. Keep helping the community.

Equity

  • Mentor equity is important only when the mentor helps you with your business. In most cases, 2% should be and idle equity offered to a part time mentor. Also, the particulars of the equity must be granted on completion of specific tasks/targets or must be vested over time
  • Usual case is that the investment amount is 18 months of operations required by the startup. During early rounds, when there is not much revenue and data, the investment depends on market, team and burn rate of the startup
  • You can also explore convertible notes while raising funds. In most cases, the investor is expecting a return on investments around 25–30%

Some tips on connecting with investors

  • Connect with them with a purpose
  • Don’t send mails when you don’t even have a single customer. Have some good traction and then mail. No one’s going to invest in an idea
Investors look for hustlers and executors, not day dreamers.
  • Ask for references to your friends. If an investor gets an email from a friend asking to connect with you, there are higher chances of taking interest in you

Some of our upcoming events:

Blog Credits : Rohit Bansal, Blogger at HelloMeets & Shashank Tiwari, Founder Lawyered