Thread
founding a startup means committing 5+ years of your life to something
especially when you raise vc money
here are 3 things to know before going after vc funding:
especially when you raise vc money
here are 3 things to know before going after vc funding:
founders who are thinking about raising should answer these 3 questions:
1. should you even start a company?
2. do you need to raise money?
3. what do vcs want to see?
if you know the answers to these, you'll be in good shape to get started
1. should you even start a company?
2. do you need to raise money?
3. what do vcs want to see?
if you know the answers to these, you'll be in good shape to get started
1. should you even start a company?
@elonmusk says “if you need encouraging words… don’t do it.”
you may never feel “ready” to start a company
but when you find a problem you're passionate about solving, the startup will choose you rather than the other way around
@elonmusk says “if you need encouraging words… don’t do it.”
you may never feel “ready” to start a company
but when you find a problem you're passionate about solving, the startup will choose you rather than the other way around
@elonmusk startups are rollercoasters — especially in the early days
my best advice?
start the company if there’s a specific problem you’re passionate about solving
it’s going to be really hard to keep building during the down days — you need to love what you're working on
my best advice?
start the company if there’s a specific problem you’re passionate about solving
it’s going to be really hard to keep building during the down days — you need to love what you're working on
@elonmusk 2. do you need to raise money?
it’s a myth all companies need to or should raise venture capital
in fact, not every company is venture scalable — and that’s okay!
you can build a great business without vc money
it’s a myth all companies need to or should raise venture capital
in fact, not every company is venture scalable — and that’s okay!
you can build a great business without vc money
@elonmusk so why raise at all?
venture capital enables you to move fast when solving the biggest problems
the startup world is an efficient market
if you’re not solving a big problem fast enough, someone else will
venture capital enables you to move fast when solving the biggest problems
the startup world is an efficient market
if you’re not solving a big problem fast enough, someone else will
@elonmusk my take?
if you’re going after a multi-billion dollar opportunity then venture funding is the way to go
if not then explore the bootstrapped route — @agazdecki and @microacquire can help you reach an eventual exit regardless
if you’re going after a multi-billion dollar opportunity then venture funding is the way to go
if not then explore the bootstrapped route — @agazdecki and @microacquire can help you reach an eventual exit regardless
@elonmusk @agazdecki @microacquire 3. what do vcs want to see?
this could be a whole thread on its own
but it's no big mystery
vcs simply want to understand the investment opportunity you're presenting to them
this could be a whole thread on its own
but it's no big mystery
vcs simply want to understand the investment opportunity you're presenting to them
@elonmusk @agazdecki @microacquire first break your business down into it's core components:
- how big is the market?
- why is your team capable of capturing that market?
- why will what you're building capture that market?
bonus: for your first round of funding the size of the market and the team matter most
- how big is the market?
- why is your team capable of capturing that market?
- why will what you're building capture that market?
bonus: for your first round of funding the size of the market and the team matter most
@elonmusk @agazdecki @microacquire then remember that vcs look at the world in trends
they don't understand the problem you're solving as deeply as you
it's your job to tie your startup into broader trends in society that they're excited about
they don't understand the problem you're solving as deeply as you
it's your job to tie your startup into broader trends in society that they're excited about
@elonmusk @agazdecki @microacquire and if you're a founder or engineer who's building something big then apply to @launchhouse
we're a community of vc-backed builders with:
- cohort-based courses
- coliving retreats
- peer groups led by coaches
- fundraising support
- and more
apply 👇 launchhouse.com
we're a community of vc-backed builders with:
- cohort-based courses
- coliving retreats
- peer groups led by coaches
- fundraising support
- and more
apply 👇 launchhouse.com
interested in learning more about how what founders need to know to grow their startup?
then follow @callmehouck
i post 1-2 threads each week on how to succeed as a founder
then follow @callmehouck
i post 1-2 threads each week on how to succeed as a founder