Saad Hassan’s Post

🌟 UNLOCKING GROWTH: HOW CAN VCs ENHANCE FOUNDER RELATIONSHIPS? 🚀 🔍 Ever pondered what founders expect from VCs and how these expectations shape their interactions? 💡 💼 Consider the landscape: a myriad of investor meetings, pitch calls, and due diligence processes. Within this framework, it becomes evident that founder expectations play a pivotal role in shaping the dynamics of the venture capital ecosystem. 📈 🔍 However, amidst the pursuit of investment opportunities, it's essential for VCs to align with founder expectations to foster productive and mutually beneficial relationships. 🤔 💬 What do founders expect from VCs, and how can VCs meet these expectations effectively? 💰 🔍 Transparency emerges as a cornerstone. Clear communication from the outset, including prompt rejection if the fit isn't right, lays the foundation for trust and respect. 🛑 📊 Furthermore, streamlined due diligence processes and optimized investment criteria on public platforms not only save time but also demonstrate VCs' commitment to efficiency and professionalism. ⏱️ 🎯 Unrealistic valuations often raise eyebrows, but a deeper dive into the underlying reasons can unveil hidden gems. It's about understanding the context before making snap judgments. 🦄 ⏳ Transparency remains paramount throughout the due diligence journey. Whether proceeding or passing, clear communication ensures that founders are not left in the dark. 📣 🤝 Direct and honest communication fosters trust and eliminates ambiguity. Founders value straightforwardness and authenticity in their interactions with VCs. 🏃♂️ 📞 Lastly, managing expectations is key. If a call is for information gathering rather than progression, clarity upfront sets the right tone. 🎣 🌱 Ultimately, founders are not just potential investments; they're ambassadors for VCs. By treating them with respect and integrity, VCs can cultivate a positive reputation and attract high-quality deal flow. 🌟 💬 What steps do you believe VCs can take to better align with founder expectations and enhance relationships? Let's explore together. 💬 #VCInsights #FounderExpectations #InvestmentTransparency #StartupEcosystem #BuildingRelationships

A while back, I sat down with a founder who was visibly frustrated. “They funded a company just like mine. Same industry, same size. Why not us?” He wasn’t wrong—his product was solid, the market was promising, and the team was capable. But every investor meeting ended the same way: “This isn’t the right fit for us.” It’s a gut punch, isn’t it? Seeing investors pour money into companies that look like yours but won’t even give you a second glance. But here’s the hard truth: it’s not just about your product, your market, or even your team. It’s about the *narrative fit.* Investors aren’t just looking for a good pitch—they’re looking for a story that aligns with their investment thesis. They want to see how your vision fits into the bigger puzzle they’re building. And sometimes, what founders miss is that the story they’re telling doesn’t quite match what investors are looking to hear. Here’s something that we did for our founder client.. We got specific. We didn’t change his product; we changed his narrative. We took the time to understand each investor’s past bets and crafted a pitch that connected the dots for them. We told a story that wasn’t just good—it was aligned. And guess what happened next? Instead of hearing “Not a fit,” he started hearing, “Let’s meet for deeper dives” Now investors were hooked. They wanted to learn more about the business and the founder. Remember, the same business but with a different vision story aligned with the investment thesis.. As we work on the raise, I’ll update once he gets funded.. But the question is… Are you just pitching your product, or are you pitching a story that investors can see themselves in?

For every founder out there, who has received multiple "No(s)" remember that all you need is one yes! I have heard multiple times from founders that they want to optimise their business/ metrics as per the VC's evaluation criteria to get VC funding. While I can understand the logic behind this, the one thing that I miss to understand is "why not understand the logic behind why a VC wants what they want?". It is your business after all and you are the one in the driver's seat. Even if you optimise for what a VC wants and get that funding, what happens post that? Do you get back to your normal path or do you completely change the business model? I truly believe all outliers were created by getting everyone on board or by standing by your radical approaches and decisions. How I would approach this situation is - 1. Explain my logic behind the business model and metrics I want to optimise for. Ask the VC for their opinion and their learnings across the sector 2. Research and talk to more companies/ understand what the thesis was of the company(s) from which the VC learnt 3. If convinced of the logic, change my outlook on the business model and the metrics and align the current team on the same 4. Discuss with the VC the target metrics the team is running to achieve currently and how you plan to ramp them up post the funding round This way everyone is on the same table! I also do understand that you may not be able to do it with all VCs, which is why you need to have a strong logic behind what you are optimising for and then only can you consider someone else's opinion. Sayan Ghosh Rajvardhan Mohite Gaurav Verma #BuildingRight #BaniyaBuddhi

The world of startups and investments thrives on compelling pitches that capture attention and ignite interest. In this captivating dance, the investment teaser plays a crucial role, acting as the hook, line, and sinker that draws potential investors in for a closer look. Think of it as a movie trailer. You wouldn't reveal the entire plot, but you showcase enough intrigue to get audiences excited and wanting more. Similarly, the investment teaser offers a concise yet captivating overview of your company's story, potential, and value proposition, without divulging sensitive details. So, what makes a great investment teaser? Captivating Hook: The first few sentences are your golden opportunity. Highlight your unique selling point and market opportunity in a way that sparks curiosity and compels investors to explore further. Compelling Narrative: Weave your company's history, present position, and aspirations into a captivating journey. Investors connect with a strong story, so make yours memorable. Data-Driven Insight: Showcase key financial metrics and growth projections. Quantifiable data paints a picture of your company's financial health and future potential. Competitive Edge: Briefly highlight what sets you apart from the competition. Make it clear why your company is the unique and valuable investment they've been seeking. Clear Call to Action: Don't leave them hanging! Clearly state your investment goals and invite them to connect for further discussion. Guide them to the next step. #investments #mergersandacquisitions #fundmanagement

Of course, as VCs, it's easy to get caught up in the excitement of the next big deal. However, I've found that some of the most profound insights come when we take a moment to step back and reflect. ⏸ 🧘♂️ Why Pause? Taking a step back allows us to reassess our strategies, understand emerging trends, and evaluate the true potential of our investments. It’s in these moments of reflection that we gain clarity on our long-term vision and how best to achieve it. 🔍 Finding the Best Path Forward When we pause to reflect, we can identify patterns and insights that may not be visible in the daily grind. This can lead to more informed decisions, better alignment with our core values, and ultimately, more successful outcomes for our portfolio companies. 🤝 Supporting Founders As VCs, our role is not just about providing capital but also about being strategic partners. By taking a step back, we can better understand the unique challenges and opportunities our founders face, and offer them the guidance and support they need to thrive. 🌱 Long-Term Impact In the end, our goal is to create lasting value. This means looking beyond immediate gains and focusing on sustainable growth. A moment of reflection can lead to innovations and strategies that drive long-term success. Let's remember that progress isn't always about moving fast. Sometimes, the best way forward is to take a thoughtful step back. #VentureCapital #Reflection #Strategy #LongTermSuccess #VCInsights #FounderSupport

In our recent fireside chat with Michael Blakey, founder of Cocoon Capital, we delved deep into what VCs and investors are truly looking for and how founders can successfully pitch for investment. Here are some key takeaways: 🌟 Focus on Storytelling: Understanding how VCs think and conveying a compelling story is more crucial than just presenting the product. 🌟 Big Ambitions, High Growth: VCs are attracted to founders with bold visions and high growth potential, not just conservative projections. 🌟 Highlight Key Elements: Your pitch deck should prioritize the problem statement, core team, and market opportunity. 🌟 Realistic Financial Projections: Include financial projections for up to 3 years to demonstrate the scale of your ambitions. 🌟 Value of Advisors: Consider having advisors who have meaningfully invested in the company to bolster your team slide. Thank you, Michael, for sharing your insights and experiences with us. Let's keep building and supporting a thriving entrepreneurial ecosystem! Catch our next masterclass on a panel discussion on growing internationally and launching into new markets. RSVP here: https://vist.ly/3fvdr

I built a 4 step framework to understand the VC business. Access → Picking → Entry → Exit. It works for all types of VC’s irrespective of their size, industry focus & geography. Let us dig deep. 1. Access – Is the next Sachin Bansal coming to pitch to you? If not, it is NOT worth being in this business. Unlike the stock market, where anyone can open an account and start buying, in venture capital, you risk falling into the trap of adverse selection. This can significantly impact your IRR. To avoid this, it is essential to make sure the top 1% founders are pitching to you and you are seeing 80% of the deals in the market. 2. Picking – You receive 400 applications every month. Congratulations Most VC’s proudly flaunt this in their pitch decks – but are you actually seeing all 400 or just the ones referred to you. What if the next Sachin Bansal filled your application form but you never saw it? So seeing everything is a must but it is only the first step. The real challenge lies in picking the right market and founders that align with your investment thesis. 3. Entry – You Choose the Asset, But the Asset Also Chooses You. You might excel at sourcing the best opportunities and making the right picks, but if the founder doesn’t choose to take your money, all that effort is in vain. Without a strong brand, even if you nail steps 1 and 2, you’re still at risk of missing out on the top deals, which can ultimately lower your IRR. 4. Exit – The Final and Most Crucial Step After making 20, 30, or even 50 bets, the ultimate question is: What’s the exit math to ensure a strong return for your investors? How much ownership do you need, and what are the realistic odds of achieving the returns necessary to justify those investments? This is where most VC’s go wrong. Ultimately, you are only as good as your last deal. You have to track and make sure you are getting better at each of these – every quarter just like a start up would. If you’re an LP evaluating a fund, the important questions to ask are – 1) Are you seeing the best deals in the market? What are you doing to make sure you continue to see them. 2) How do you pick companies? Show us an investment memo? 3) Have you lost any deals, and if so, why? Found this useful? Let's continue the discussion in the comments. #vc #venturecapital #investing

As an angel investor, I've learned that building a portfolio of high-impact companies isn’t just about choosing promising founders; it’s about betting on bold visions and strategic timing. Here’s what I look for: 🌟 #1: Back founders with a billion-dollar vision Talent is everywhere, but what sets a founder apart is their unique perspective and a fierce, audacious vision. Experience matters, but a founder with both a visionary outlook and a strong execution plan is unstoppable. 💡 #2: Invest in products with a clear market and right timing Even the most innovative product will struggle if the market isn’t ready. Great investors learn to identify the perfect moment when the market is ripe for growth and then dive in. 🚀 #3: Invest early and double down on top performers Early-stage investing is about spotting potential and having the conviction to support it. The best opportunities reveal themselves in the first few years, and doubling down on those with traction can lead to significant returns. If you’re looking to support female founders and bold innovators, keep these principles in mind. BAD BITCH EMPIRE 🌍

An observation, I've spent most of the last 18 months as a fractional exec. It has given me a really great view of the ecosystem. There are some drawbacks to being a fractional #CxO (that's a topic for another day). But one of the benefits is that people across the board are more open and honest with me since they know that we are working together for very specific things over a set period of time. So...one thing that I'm seeing too much of? There are too many people overplaying their hands. #Founders, usually first timers, who are trying to extract every once of value from investors, employees, prospects. It's shortsighted but not something that I can coach out of people. This is a habit they have to want to drop and not everyone wants to. #Investors, whose line of questioning suggest they don't actually know what they're doing. This has nothing to do with their time or experience in venture, I don't know the root cause, I'm just calling out an observation. I should also say, there are a lot of incredible investors out there so it's not a knock on #VC. #Employees who think you can't build this business with out them. They will handcuff your business to get everything they want. If you don't cut them loose quickly, they can cost you your business which costs them their livelihood.