In our previous blog, we showcased thru a lyrics on the VCs approach considering an investment.
Let’s decipher the remaining stanzas of “Are you bored yet” by Wallows (with Clairo) from the lens of a founder
Q1. Do investors really take that long to evaluate?
But I can’t help from askin’, “Are you bored yet?”
And if you’re feelin’ lonely, you should tell me
Before this ends up as another memory
Inference:
While all the questions that run through a VC’s mind around investing in a venture, the venture’s founders hold onto “We’re evaluating, we’ll get back to you shortly”
Being founders, the urge to inquire progress is unsettling:
- Is there anything hindering us from hearing from you?
- Do you have any more inquiries that we can assist you with?
- Can we have a quick phone chat to go through the status?
Delays in responses frequently appear to founders as missed opportunities.
Nevertheless, there is another side to it; most VCs work in small teams and make the best use of their time to get things rolling. And it’s a positive sign when they take their time with it.
While we at Auxano invest within a three-month time frame, category-creator possibilities can take considerably longer.
Also, “Its hard to beat someone who marries uncommon patience with explosive speeds”
Q2. Should you follow up regularly with investors?
Will you tell the truth so I don’t have to lie?
Will you tell the truth so I don’t have to lie?
Inference:
Following up regularly with investors ensures that the founders’ proposal remains top of the priority amongst other potential investment proposals.
However it is equally to know that investors comprehensively spend time on evaluating investment proposals, and thus take time.
To conclude, while it is important to do follow-ups, too frequent follow-ups can make the investors thwarted. Result of which may not be favorable. From experience of procedures at Auxano, follow-ups once a week or twice a week can be helpful
Investment Closure…..?
Q3. Do the investors know everything?
Feels like I’ve known you my whole life
I can see right through your lies
Inference:
The time and resources that are deployed in analyzing an investment goes a long way to reveal the majority of the underlying facts to make an investment decision.
At Auxano, while we closely collaborate with 25+ companies and review over 50 potential one’s each month, with the experience that has come along it’s not hard to find leaks.
Moreover for founders, is it really advantageous to misrepresent information?
Misrepresenting the investing case may make it more appealing, but it does more harm than good. In addition to the fact that VCs are not looking for the best opportunities, they are looking for opportunities that are maturing and have the greatest future potential.
Q4. Future is unpredictable, why do investors need future goals?
I don’t know where we’re going
But I’d like to be by your side
Inference:
Although it’s challenging to foretell the future, it’s not that challenging to influence it.
Is the number of social interactions the same for a 23 y/o (Out of college) born in the 2000s? And a 23 y/o born in the 1980s?
While it is challenging to foresee the quantity of interactions, it is not challenging to predict a decline in in-person social interactions as a result of rising social media usage.
For those who have the capability to influence the future, have the potential to profit from it. One of the recent examples, Facebook invested $1 billion in Instagram. Currently, it is valued at $100 billion. (Source: Bloomberg)
Q5. Do investors add value above capital?
If you could tell me how you’re feelin’
Maybe we’d get through this undefeated
Holdin’ on for so long
Inference:
At the end, as shared in an earlier blog “Investors beyond Investment!”
“The approach to raising capital and investing in startups should be like match-making. The goal of this match must not be restricted to reaching a destination but to stride on one of its kind journeys. The entrepreneurs must focus on onboarding investors who add value to the business beyond capital. The investors — who can and are willing to act as the sandbox, coach, propagator and user.”
Because when we work as a team, we can accomplish great things!
Author (s):
Kanuj Jadwani
