What's Below in Issue #78:
๐ฐ - Pivoting
๐ - Funding milestones
๐๏ธ - Podcast #46 w/ Rob Hunter, From Bankruptcy to Multi-million Dollar Exit
๐ต - Premium startup resources
๐ - Free startup resources
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Knowing if your pitch deck is a winner or loser is not always clear. The venture community likes to project false positivity and tries not to give direct feedback for fear of founders getting defensive or feeling crushed.
โโPersonally, I feel it's a disservice to founders pouring their heart, blood, sweat, and tears into their businesses not to get direct and constructive feedback.
โโThat's why I'm hosting a monthly live and recorded deck roast for founders in the Thunder community.
RSVP now to tune in to this month's roast where I put on my VC hat and look over your pitch deck. Want your pitch deck reviewed? Submit your deck
โโThis Event is Sponsored by Decko, your pitch deck built from scratch by VCs and designers.
-------------------------------------------------------------------------------------------------------------------------------------------------------------Data Corner
This week's data shows the timeline you can expect on your fundraising journey from the first raise to the late-stage rounds. The chart above shows how long it takes to go from stage to stage starting from launch to Series D. It breaks down as follows;
๐ฆ๐ฒ๐ฒ๐ฑ (๐ถ๐ป๐ฐ๐น๐๐ฑ๐ฒ๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ๐ฑ ๐๐ฒ๐ฒ๐ฑ ๐ฟ๐ผ๐๐ป๐ฑ๐ & ๐ฆ๐๐๐๐ ๐ผ๐๐ฒ๐ฟ $๐ฎ๐ )
โข Median of 1.8 years from incorporation recently
๐ฆ๐ฒ๐ฟ๐ถ๐ฒ๐ ๐
โข Median: 3.1 years from incorp
๐ฆ๐ฒ๐ฟ๐ถ๐ฒ๐ ๐
โข Median: 4.7 years from incorp
๐ฆ๐ฒ๐ฟ๐ถ๐ฒ๐ ๐
โข Median: 6 years from incorp
๐ฆ๐ฒ๐ฟ๐ถ๐ฒ๐ ๐
โข 8.1 years from incorporation
As you can see, you can expect your journey (if you follow the traditional path) to take quite a while, so hang in there.
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Letโs Talk Pivoting!
Picture this, your early-stage startup is struggling to achieve product-market fit. You had big dreams for your new venture but it is struggling to take off. Is it time for you to consider pivoting and shifting gears?
The biggest pivot of my career was when Samsung pulled their acquisition offer of our company, LiquidSky, the day of closing. We quickly had to pivot from burning $400K/mo as a B2C business to cutting the burn to $100K/mo and becoming an Enterprise Cloud SaaS business in three months. It was nuts. So, let's talk about when might be the time to consider a pivot.
A great instance of this is Slack. Originally a gaming company called Tiny Speck, was developing a game called Glitch. Despite their efforts, the game failed to gain significant traction.
However, during the development of Glitch, the team created an internal communication tool to help them collaborate more effectively. Now Slack is valued at over $26 billion.
For those of us older than the internet, we remember Netflix as a DVD order service and we got our movies in the mail. The pivot to online streaming has seen the company become a staple in every home and a decacorn trading on NASDAQ.
So, when do you decide to pivot your startup? Things aren't looking so peachy and it's time to ask yourself a few questions. It's time to do some market research and assess new opportunities. Are you changing your business model? Do you need to explore new markets or expand your product features?
It is super important to recognize when things are changing and you have to keep your eyes open for opportunities and be ready to act. It's a time to experiment; test your assumptions and validate the new direction you want to go in.
Communicating your new direction
If you are like me, you know there may be some resistance to change. How can you get your customers on board with the shift in your company? Internally and externally, you've got to be clear about how you let people know about the pivot.
How can you reassure your customers that they can still trust you after the pivot? You have to show them that even though the brand is taking a new direction. As a venture-backed startup, this also means managing investors' expectations and being clear about the new direction you're going in.
------------------------------------------------------------------------------------------------------------------------------------------------------------From Bankruptcy to Multi-Million Dollar Exit with Rob Hunter Now in Episode 46
In this episode, Rob Hunter, partner at Speaker Ventures and exited founder, shares his entrepreneurial roller coaster journey. From going bankrupt with his ice cream franchise in his 20s to getting into Y Combinator, raising venture capital, and eventually exiting his tech startup HigherMe. Rob provides insights on navigating the highs and lows of entrepreneurship, making tough decisions like when to step away from the CEO role, and evaluating acquisition offers.
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Free Fundraising Resources
๐ค - Free pitch deck reviews - Submit your deck
๐ธ - Access working capital fast - Explore options for free
๐ - Free list of AI Recommended VCs - Apply for free
๐จโ๐ป - Free fundraising coaching session - Schedule 15 minutes with us
๐ - Playbook for Negotiating Term Sheets - Download it Here
๐ฝ - Playbook for Setting Up and Sharing Your Data Room - Download it Here
โ๏ธ - Playbook for Sending Investing Updates - Download it Here
Premium Resources
Your pitch deck built by VCs and designers
๐๏ธ - Book a one-hour private capital strategy call - Book Now
๐ซ - Pitch deck design services for founders by VCs - Decko
๐ผ - Startup Legal Services - Bowery Legal
๐ - Startup Friendly Accounting Services - Chelsea Capital
Download Your List of Targeted Investors:
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Let's stay in touch: