How Do VCs Decide to Take a First Meeting? & Non-Obvious Fundraising Lessons On Pitching…| VC Jobs
Framework to Turn Customer Feedback into Action & Decoding Founder Mode...
👋Hey Sahil here! Welcome to this bi-weekly venture curator newsletter. Each week, I tackle questions about building products, startups, growth, and venture capital! In today’s newsletter, we dive into -
Deep Dive: How Do VCs Decide to Take a First Meeting? & Non-Obvious Fundraising Lessons On Pitching….
Quick Dive:
Decoding Founder Mode.
Spotlight Framework: Turn Customer Feedback into Action.
Super Mario Marketing Framework
Venture Curator Hub: Get Access To Early-stage startup financial modelling Excel sheet, 10000+ verified investors' email contact database & more.
Major News: Open AI Valued $143 Billion In Secondary Market, Carta Sells Its Secondary Business, Bolt CEO Justin Grooms hinted at legal action against Silverbear Capital & More..
Best Tweet Of This Week On Startups, VC & AI.
VC Jobs & Internships: From Scout to Partner.
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TODAY’S DEEP DIVE
How Do VCs Decide to Take a First Meeting? &
Non-Obvious Fundraising Lessons On Pitching….
As an early-stage Founder, you need to get inside the heads of VCs. Like you, VCs have a job to do, and they have a limited number of meetings they can take. So once they get introduced to you, the first thing they need to do is decide whether to have a meeting with you… or not.
Let me break it down for you: A typical VC might hear about 1,000 companies in a year. Out of those, they'll only meet with about 200. And invest in? Just 4. That means 80% of the time, they're saying "thanks, but no thanks" to even having a chat.
So how do they make that call? Well, every investor is different. Most don't have a strict checklist - they often go with their gut feeling. But there are usually 12 key things they want to know right off the bat to help them decide if you're worth the first meeting.
Your team: What makes your group stand out? Have you had any big wins in the past, like successful startups or major achievements? Think about unique skills or experiences that set you apart. Also, how long have you all been working together? VCs love teams that already click.
Quick pitch: Can you describe what your company does in one exciting sentence? This isn't just about listing features - it's about capturing the essence of your vision. Make it catchy and memorable. If you can make someone's eyes light up with your one-liner, you're on the right track.
The big picture: What's the massive opportunity you're going after? VCs want to know why this problem is worth solving right now. Has something changed in the market or technology that makes your solution possible or necessary? Paint a picture of how big this could be.
Money stuff: How does your business actually make money? Be clear about who's paying for your product or service. What kind of margins are you looking at? Even if you're early stage, share any numbers you have so far. VCs want to see that you've thought through the economics.
Where you work: Where is your team based? Are you all in one office, or do you have a remote setup? Some VCs prefer local investments they can visit easily, while others are fine with distributed teams. Being upfront about this can save time for everyone.
Team size: How many people are currently part of your company? Break it down into full-time and part-time roles if applicable. This gives VCs a sense of your current stage and how much you're spending on salaries. It also hints at how far along you are in building out your team.
Timing: Why is now the perfect moment for your startup to exist? Has there been a recent shift in technology, regulations, or consumer behaviour that makes your idea more viable? VCs love to hear about why the stars are aligning for your business right now, not two years ago or two years from now.
Traction: What concrete progress have you made so far? This could be user numbers, revenue figures, key partnerships, or any other metrics that show you're gaining momentum. Make sure these metrics are relevant to your specific business model. Even small wins can be exciting if they show rapid growth.
Fundraising target: How much money are you looking to raise in this round? Be specific - don't just give a range. VCs often have sweet spots for investment sizes, so knowing your target helps them quickly assess if you're a fit. Also, be prepared to explain how you arrived at this number and what milestones it will help you achieve.
Past funding: Have you raised money before? If so, who invested, when, and how much? This acts as social proof and shows how you've used resources up to this point. Even if it's just friends and family money or a small angel round, it's worth mentioning. It shows that others have believed in you enough to open their wallets.
Investor fit: Why are you interested in this particular VC or firm? Show that you've done your homework on what they bring to the table beyond just money. Maybe they have expertise in your industry or a track record of helping companies like yours scale. Demonstrating that you've thought about fit can really impress VCs.
Referral source: Who introduced you to the VC? A strong referral from someone the investor trusts can make a huge difference. If you have a solid connection, make sure to highlight it. If the intro came through a less direct route, that's okay too - just be upfront about it. VCs appreciate knowing the context of how you got to them.
If you have solid answers to all the points mentioned above (and include them in your pitch deck or cold email), your fundraising process will likely go much more smoothly.
Once you secure a call, the most important aspect is how you pitch as a founder. Many founders struggle with presenting their deck or idea effectively. To help, we're sharing some non-obvious fundraising lessons on pitching that VCs expect every founder to know and follow..
Be specific with numbers
When you're talking to investors, try to include concrete numbers in every sentence. Instead of saying "We're growing fast", say something like "Our monthly revenue increased 30% from August to September". Precise figures show you really know your business inside and out.
Use your whole body when pitching
Don't just sit there talking - get up and move around! Pitching is a performance, so use your body language to convey energy and excitement. I've found that standing up and gesturing helps keep investors engaged.Visuals are powerful Whenever possible,
Use diagrams or charts to illustrate your points. A good visual can communicate way more than words alone. I always try to include some key diagrams in my pitch decks.Point things out on the screen
When going through slides, physically point to what you're talking about. It helps keep everyone focused on the key information. I'll often walk up to the screen to highlight important data points.Send materials in advance
Give investors a brief overview of your company before the meeting. That way you can dive right into the meat of your pitch instead of wasting time on basic background info. I like to send a short company summary a day or two before.Arrive early to set up
Getting there 15 minutes early lets you make sure all your tech is working and you're fully prepared. It also shows you're organized and respect the investor's time. I always build in buffer time for traffic or other delays.Position yourself well in the room
Figure out where the investors usually sit and position yourself nearby, in front of your presentation screen. This lets you easily interact with your materials. I try to scope out the room beforehand if possible.Show passion,
Don't just talk about it Actions speak louder than words when it comes to conveying your passion. Use your energy and body language to show how committed you are. I once got down on one knee to emphasize a key point - it definitely got the investor's attention!Dress professionally
Wear something sharp that shows you're serious. Sloppy attire can make it hard for investors to see you as a strong leader. I always dress a step up from my usual work attire for pitches.Take notes
Bring a notebook and pen to jot down investor comments and questions. It shows you're engaged and helps you follow up later. I review my pitch notes after each meeting to look for ways to improve.Only bring your best presenters
Only include team members who are great at pitching, regardless of their role. Having weak presenters can drag down the whole pitch. I'm careful about who I bring, even if it means some tough conversations.Customize for each investor
Tweak your pitch for each VC firm based on their interests and values. I create a slightly different deck for every investor I meet with.Talk less, ask more
Spend only about a third of the meeting on your pitch. Use the rest of the time to ask questions and discuss. I try to keep my initial presentation to 10 minutes max.Focus on learning, not closing
Don't expect to close a deal in the first meeting. Instead, use it as a chance to get valuable feedback. I always ask VCs for their thoughts on my business model and strategy.Keep improving your pitch
Pay attention to how investors respond and keep refining your pitch. If you're not seeing improvement over time, you may need to rethink your approach. I'm constantly tweaking my pitch based on feedback.Understand VC psychology
Try to put yourself in the investor's shoes. Understanding their perspective and constraints helps you pitch more effectively. I've found that empathizing with VCs makes the whole process less stressful.
That’s it.
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QUICK DIVES
1. Decoding Founder Mode
You’ve probably seen, if not already read, Paul Graham’s new essay: Founder Mode.
There are two ways to run a company as it scales: in “founder mode” or in “management mode.”
In founder mode, the founder remains deeply connected to the company’s core, ensuring that the original vision and values are preserved. This often means resisting the temptation to delegate too much authority too quickly. Instead, the founder stays involved in the details, shaping the company’s trajectory with their unique perspective and hands-on approach.
Management mode, by contrast, is what conventional wisdom often dictates as the “right” way to scale a company. The idea is to bring in experienced professionals, trust them to lead their teams and step back from the day-to-day operations. This approach can work well in established companies where stability and efficiency are key. However, in a startup, this shift can sometimes lead to a disconnect between the founder’s vision and the company’s execution.
Graham argues that this disconnect can be particularly harmful when founders are pressured—or even gaslit—into adopting management mode too soon. The well-meaning advice to “hire good people and let them do their jobs” can backfire if those hires don’t fully understand or share the founder’s vision. As a result, the company can lose its direction, leading to disastrous outcomes.
Graham suggests that instead of following the traditional playbook, founders should embrace founder mode as their companies scale.
This approach may involve breaking some of the conventional rules of management, but it also allows founders to maintain the unique qualities that made their startups successful in the first place.
In my opinion, neither is inherently good or bad. Instead, success comes from adapting these modes to fit the evolving needs of the company. Founders often start in founder mode, which is characterized by tight control and hands-on involvement. However, this mode has its risks, like micromanagement and chaos, if not checked. On the other hand, management mode, often criticized for being too hands-off, can fail when there’s no clear vision, the wrong team is in place, or the company’s context is shifting.
The best leaders know how to switch between these modes, blending them as needed to suit their unique leadership style. The key is flexibility and self-awareness, not rigidly sticking to one mode or the other. Ultimately, being in founder mode doesn’t automatically make someone a good founder, just as being bad at management doesn’t mean management mode itself is flawed. It’s about creating a new, adaptive leadership style…
Also, you can check this YouTube video where Airbnb CEO explains founder mode…
2. Spotlight Framework: Turn Customer Feedback into Action.
Talking to customers is a 101-level requirement for being a founder, but it’s easier to get tripped up by either:
Not knowing what to do with the feedback you collect from users
Turn feedback into actions
Separate the signal from the noise within the sea of feedback
The Spotlight Framework helps you avoid focusing on the wrong parts of user feedback by categorizing the following types of questions and statements you get from users:
There’s also a very long, detailed, and helpful infographic in the blog I found the framework on — I highly recommend taking a look!
3. Super Mario Marketing Framework
Your customers don’t care about your product. At all. This sounds harsh but it’s true. They have no vested interest in it.
They only care about what your product can do for them. Here’s an easy example with Super Mario:
Mario → Your customer who needs help navigating their world.
Your Product → In a vacuum, this does nothing for Mario. It simply exists.
Mario, Using Your Product → Suddenly Mario has new abilities and can conquer their problems.
The takeaway? Avoid selling and marketing based on what your product can do.
Focus entirely on the transformation and future state your customers will be in once they buy and use your product. It’s all about the benefits, not the features. What can your product’s features actually do for your users?
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THIS WEEK’S NEWS RECAP
Major News In VC, Startup Funding & Tech
Bolt CEO Justin Grooms hinted at legal action against Silverbear Capital over a disputed $200 million commitment to their funding round. (More Here)
OpenAI is reportedly in talks to raise funding at a valuation exceeding $100 billion, Investors are already valuing the AI leader at up to $143 billion in secondary markets. (More Here)
Amazon is hiring three co-founders from the AI startup Covariant, including CEO Peter Chen, and is obtaining a non-exclusive license to the company's AI models.(More Here)
Scientists build DNA-based computers that can play chess and solve sudoku puzzles. (More Here)
GitHub Copilot competitor Codeium raises $150M at a $1.25B valuation. (More Here)
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Relationship Manager - French Founders | France - Apply Here
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Operations Associate - Entrepreneur First | USA - Apply Here
Venture Capital Investor - Superspeed | UK - Apply Here
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Partner 16, Portfolio Valuations & Analytics Analyst - a16z | USA - Apply Here
Partner 36, Corporate Development, Healthcare Technology - a16z | USA - Apply Here
VC Analyst - Giffin Gaming Partner | USA - Apply Here
Visiting Analyst - Food labs | Germany - Apply Here
Associate / Senior Associate - BioEconomy Investment Team - Forbion | Netherland - Apply Here
Partner 18, Recruiter - a16z | USA - Apply Here
Investment Analyst - India - Apply Here
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That’s It For Today! Happy Tuesday. Will meet You on Friday!
✍️Written By Sahil R | Venture Crew Team