Orphan founders

Many young-age founders think raising early on from a tier 1 fund guarantees success against others. On the contrary, taking an early cheque from a tier 1 fund limits your option. 

Some of the things that will happen: 

  1. Your champion will leave the fund. You will become an orphan.
  2. Not enough growth. You will be left to die slowly.
  3. Tier 1 fund will not lead and throw a mixed signal to other incoming investors.

What can founders do?

  1. Focus on fundamentals and not get carried away by who is on their CAP Table. 
  2. Focus on the team and building and delighting customers.
  3. Avoiding noise, PR, and self-promotion.