Zooming past Zoom might be the answer to raising your next round. We have all discovered the convenience of Zoom and remote meetings. Being able to stay at home allows for many more meetings in a single day and avoids the annoyance of commuting. This can seem especially true with VC fundraising when there are hundreds of people to talk to and never enough time to speak with all of them. Zoom may feel like the best way to sit with investors while saving as much time as possible.
However, Zoom loses arguably the most important aspect of meeting investors – the human connection. It is very difficult to have a small talk over a Zoom call and it usually remains very factual and deal-oriented. While this can have its benefits, it also prevents the investors and founders from knowing each other’s personalities. Being in the same room with someone creates a higher level of connection and relationship.
VCs also are always trying to discover the power dynamics between founders which is much harder over Zoom. The conversation on Zoom tends to be more about taking turns presenting than an actual conversation. Subtle cues that would normally be visible in an in-person discussion are lost over the video. Similarly, company dynamics are very difficult to decipher using Zoom. Investors enjoy in-person meetings with the team since it allows for more relaxed conversations than formally staged 30-minute slots where employees are expected to be perfectly polished.
Carta recently released data that showed over 50% of investments into pre-seed companies are those based in New York and California. This is most likely due to their ability to meet their investors in person. The founders and investors in these cities have a higher ability to meet each other at events and tour each other's offices.
While this does not mean you should move your startup, it would be a good idea to budget travel into your fundraising process. Flying to both New York and California to meet with investors to build that personal relationship that can help differentiate your startup from the other ones.
On a similar note, it is important to think about how Zoom impacts your own startup culture. Is your entire team remote? Have you ever met your other team members in person? Remote teams can have many benefits, but it does usually mean that coworkers know each other less well.
In a similar way that meeting investors in person can increase your ability to raise capital, having teammates meet each other in person regularly can help build a stronger team.
Are you struggling with your capital raise or need some no-BS advice on what to do next? Book a coaching session here with Jason Kirby.
Fundraising Demystified Episode #14 is Live!
In the latest episode, we interview Juan Garcia Mansilla, the founder of Unit 1. Juan's journey as a product designer and his success in closing a $3.5 million Series A funding round is truly inspiring.
Here are three key takeaways from this episode:
Building a team and finding the right partners: Juan emphasized the importance of surrounding yourself with people you trust and who can fill the gaps in your business. He shared how fortunate he was to have amazing individuals join his team and invest in his company. This highlights the significance of properly incentivizing and aligning with long-term goals.
Navigating the challenges of entrepreneurship: Juan's story is a reminder that the entrepreneurial journey is rarely smooth sailing. He shared his experiences of both positive and negative outcomes, including the realization that a successful crowdfunding campaign on Indiegogo doesn't guarantee long-term success. However, his wise decision to seek out the right type of investor, like the Adidas accelerator, helped him overcome these challenges.
Persistence and resilience: Juan's story resonates with many entrepreneurs who have faced bumps along the road. He highlighted that the majority of companies experience a bumpy ride rather than a perfectly straight path to success. However, with the right partners by your side, you can continue on your journey and achieve your goals. Listen Here
Jason has already roasted 20+ decks during this weekly event. We have received incredible feedback from founders who had their decks roasted or just came to watch.
Click the link below to submit your deck to receive feedback on how a VC would look at it. This is a RARE opportunity, so don't miss your chance! RSVP Here
What the Experts Have to Say
Investing Over Zoom: Lessons On How Early Stage Investment Is Evolving During Covid-19
A look into what VCs are missing with Zoom and how they are adapting. Read More
How VCs Judge Your Startup (on Zoom): 15+ Tactics Behind Successful Fundraises
An absolute must-read for founders who pitch on Zoom. NFX discusses almost everything a VC is looking at and what a founder should do on Zoom. Read More
Can You Invest Over Zoom? Venture Capitalists Are Split
While most VCs will take Zoom meetings, especially the first ones. Several VCs will not invest without an in-person meeting. Read More
If you're ready to raise capital, accelerate your fundraising process by upgrading to Premium. All premium clients receive a complementary consulting session with Jason Kirby, Managing Partner at Thunder. Upgrade Now
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Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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