VC Minute – quick advice to help startup founders fundraise better.
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Josh Sanchez
With regards to accountability during the fundraising process, even in companies I’ve angel invested in, the one thing I look for is the monthly update and the consistency around that monthly update.
What is the framework that they use to tell their story, communicate progress, and communicate the challenges that they’re having? And I think the easiest framework to follow is to focus on plans, progress, and problems.
Every single company is going to have problems throughout their journey. I want to make sure that they’re focused on the problems and are communicating progress against the plans that they’re communicating.
The one thing I look forward to is, and I know I’m talking in the context of just my experience in angel investing, but what is the North Star metric they’re focused on, week over week or month over month? Because that helps validate the growth opportunity for the business.
In terms of accountability, it’s consistency. Are they always consistent with the monthly update that they give? And it’s okay if, you know, things are not always going to be rosy and perfect and headed in the right direction. But even if there are challenges going on in the business, and every business has its own set of challenges, it’s sharing what those are and what some of the things that they’re doing about them are.
I think it’s really, really important to demonstrate consistency and accountability over the three Ps: plans, progress, and problems, but also the north star metric—you know, what are they trying to grow every single month that tells us this business could be a big opportunity.
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