How to Start a Startup note #3


Moving on to how to startup series class, I spent time watching Lecture 9: How to Raise Money and Marc AndreessenRon Conway and Parker Conrad had an  interesting take on it.

Some of my notes from the class:

  1. Build something awesome which pulls  VC to you.
  2. Most VC invest in team, past success of the founders & product.
  3. If you have a prototype of product ready, some paid customer & solid co-founders getting money is easier.
  4. Getting a VC funding is easier than acquiring customers or hiring 20th employee.
  5. Most VC has a strict policy not to invest in competing companies.
  6. Keep a valuation real for first raisisng round.
  7. Don’t dilute too much in the initial round of raises.
  8. Always take money from VC who has partners with your product line, good connections for business development and  for later stage funding.