Key insights

• ⚖️ The financial world operates with status games, but a shift in business is underway.
• 🤔 Investors may give language lessons instead of investing, signaling a lack of interest.
• 🚀 YC helps founders realize they have more leverage in the fundraising process.
• 🛑 Founders often face rejections without transparent explanations.
• 📊 Preparation for a longer fundraising process and managing expectations is crucial.
• 🛠️ Tools like YC Community's investor database help evaluate and prioritize investors.
• 📈 Fundraising should not distract founders from focusing on users, product development, and company growth.
• 🎭 Investor meetings are auditions for both parties, and the goal is to create a great business, not just raise money.

Q&A

• How should startups handle investor feedback?

  Startups should maintain professionalism, expect rejection, avoid making drastic changes based on investor feedback, and focus on building a product that solves a real problem.

• What should founders focus on when engaging with potential investors?

  Founders should focus on investors who invest regularly, respect time, provide support, and act quickly. They should also exercise control and prioritize their time efficiently when engaging with potential investors.

• How does Y Combinator (YC) help founders in the fundraising process?

  YC helps founders realize they have more leverage in the fundraising process, but finding the right investor is still challenging. Additionally, YC Community offers tools such as an investor database for feedback and prioritization.

• What role do status games and ego play in the financial world?

  Status games and ego still play a role in the financial world, but there is a shift underway in business dynamics.

• What are some challenges founders face during investor meetings?

  Founders may encounter challenges such as unresponsive and disrespectful investors, a focus on irrelevant topics, mind games, personal questions, and feeling demotivated.

• 00:00 Raising money can be a challenging game with unpleasant and bizarre investor meetings. Status games and ego play a role, but the shift in business is underway. An awkward investor meeting in London and a famous VC diverted the focus from business pitches to irrelevant topics. The financial world operates with status games, but a shift in business is unfolding.
• 04:50 Investors can sometimes be unresponsive, disrespectful of founders' time, and opaque about their decisions. Founders should focus on investors who respect their time and move quickly. YC helps founders realize they have more leverage, but finding the right investor is still challenging.
• 09:01 A founder's poorly organized pitch to potential investors reflects desperation and lack of strategy, but having a clear plan and seeking advice can make a difference. Good investors act quickly, provide support, and avoid being a distraction, and there are tools available to evaluate them. YC Community offers an investor database for feedback and prioritization.
• 12:54 Fundraising can be a challenging process for founders, with potential investors approaching before, during, and after demo day. It's essential for founders to exercise control and prioritize their time efficiently when engaging with potential investors. The quality of investors can significantly impact a company's success, making it crucial for founders to carefully assess and select investors. Investor meetings may involve mind games or unique styles, and it's important for founders to recognize that not every investor may be the right fit for them. A bad investor can be more detrimental than not having a great one.
• 17:11 Facing challenges during investor meetings, including not having a clear CEO, being asked personal questions, and feeling demotivated. Importance of knowing the investor, being prepared, and not idolizing them. Investor meetings are auditions for both parties. Focus is on building a great business, not just raising money.
• 21:38 Startups should maintain professionalism in their dealings with investors and not base their success solely on investor feedback. Founders should expect rejection, avoid making drastic changes based on investor feedback, and focus on building a product that solves a real problem.