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My friend Eric is a very successful startup founder who has been a CEO coach for the last decade. When founders come to him to ask if they should shut down their startup, he runs this process with them.
There are ways to shut down: The Ghost, The Bonfire, The Refund. But there’s also a great way to sell your startup. That advice is not mine to share, so go read this presentation by Geoff Lewis: The Terminal Plan
This week, we’re covering an important but difficult topic: shutting down your startup. If you’re asking yourself the question, you may already have the answer. And your investors may have already written your company down.
When a start-up comes into my inbox cold or through another investor, there are really only two things I’m trying to figure out: 1) Is this for me? 2) Is this interesting?
Allyson joins us to share her insights on providing specificity to the problem being solved. A founder has to be able to convey the severity of the problem and the specific upside to solving it. Without both, investors know customers just won’t buy.
Wrapping this up, I’ve been watching the “Follow-On Death Spiral” for the last year. It’s not all bad news through.
The time between startup fundraises has grown significantly. Additionally, the time between venture fund vintages has also grown, resulting in a slowdown of capital deployment. All while venture funds buoy the healthy companies in their portfolio with follow-on capital.
Over the next few days we’re going to dive into why follow-on investment is the most important thing for Seed startups. Today, a quick background on the lengthening of the Seed Phase and why Series A raised the bar.
Maybe a founder could explain to me why you would not follow up with investors that opened your deck on DocSend?
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