11 Things About Startups You Might Not Know - Guide

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11 Things About
Startups You Might
Not Know
You have worked very hard to get y our product
ready for testing. After testing, you gain your
first few users and know you are on to
something, but where do you go fro m there?
made with
Investors love to make excuses on
why they don’t want to invest
This is a little story from a now success entre preneur and
mentor
"Investors all had different reasons why they d on’t want to
invest. After getting over 20 “No’s” from inve stors, I realized
something was off. Each one would sugarcoat t he “No” and
tell it to you in a way that would make them co me off nice.
Don’t blame them as no investor wants a bad r eputation. But
one thing I learned as an entrepreneur is that when an
investor tells you “No”, you should ask what yo u could have
done differently to improve your pitch. By askin g this, you
will get feedback you can use to improve your o verall pitch
and increase your odds of raising money.
11 Things About
Startups You Might
Not Know
See why some startups succeed and some don't. These
points should help you understand how to approach
your new venture without falling flat!
Raising a lot of money doesn’t mean
you’ll get a high salary
To illustrate, here is a short story by an entrepr eneur; “Our
seed round for KISSmetrics was a million bucks , and our
series A was three million. When we raised our seed round,
my co-founder and I were ecstatic as it was the first time we
raised outside capital. We were over the moon t hat we could
take a salary. We were even hoping that we cou ld take a nice
six-figure salary.
Our lead investor True Ventures was very flexib le and didn’t
restrict us on how much of a salary we could tak e. They
explained, however, that if we took high salarie s, it would
increase the overall burn. This means the comp any would
have to raise more money faster, which would c ause more
dilution for my co-founder and me.
Due to this, we decided to take only a $5,000 a m onth salary…
even after we raised our three million dollar ro und. The
reason I say we took a $5,000 monthly salary in stead of
$60,000 a year is that we couldn’t always pay o urselves each
month as we had to conserve cash when things didn’t work
out the way we wanted.
In the long run, everything worked out, but we w ouldn’t have
been around if we didn’t penny pinch…not jus t with our
salaries, but with everything.”
If you are going to raise capital, don’t be dumb by paying
yourself a lot of money. That will just cause yo u to have to
raise more money, which means you will own le ss of your own
company.