VC Minute – quick advice to help startup founders fundraise better.
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Happy Friday, everybody. It’s a Friday in July, and do you know, what’s the perfect thing for a hot summer day? A pool party. Oh yeah.
It’s back to the pool party because an investor that lacks conviction or has concerns, that they’re probably not sharing with you, feels validated when the pool party is empty. This is why throwing a hot pool party is essential to a successful seed round.
All those concerns wash away when the pool party is packed. There are three psychological factors at play here. First, social validation. Someone else must have done the work. Second, confirmation bias. I can have my fears assuaged by hearing what I want to hear from the folks that are in the pool. And third, FOMO. Oh, FOMO. Try, as we might aware all subject to its dark powers.
Do I have a lot in my pipeline, got to reprioritize it to make it to the pool party.
Too early, maybe I’m wrong. There’s a lot of people in that pool; they don’t think it’s too early.
Unsure about venture scale returns? Someone in that pool must have figured it out. Let me ask around.
Founder concerns? It can’t be that bad; look at all those people in the pool!
A hot pool party makes everyone feel like someone else has done the work. And if you have a strong lead, they actually did the work. And they should be the ones pulling folks into the pool.
Work your system to get through investor systems, build momentum, and fill the pool. Easier said than done. I know.
But for now happy Friday. I hope you have a fun and restful weekend. And go jump in a real pool and cool off, splash around for real.
Thank you for spending some more of your time with me. We’ll be back next week with things not to say during your pitch.
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