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High level in a first 30–45 minute meeting, I — like most VCs — look for a thing or a FEELING more than anything specific to (not) waste that founder’s time further
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1st meeting, I bucket what I am looking for into 2 areas:
(1) Founders’ thinking + storytelling — important for bringing people on the long-term journey (key hires, downstream VCs, partners)
(2) Execution — early product experience, metrics, team hiring signals
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(1) Founders’ thinking + storytelling — important for bringing people on the long-term journey (key hires, downstream VCs, partners)
(2) Execution — early product experience, metrics, team hiring signals
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The way founders talk about the market is really a proxy for founder vision
Vision is another word for “building investor emotion,” which should be the main outcome for any first meeting to convert into a diligence process
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Vision is another word for “building investor emotion,” which should be the main outcome for any first meeting to convert into a diligence process
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Many confuse market at the early stage with total addressable market (TAM)
TAM always increases with the best companies so I personally think it’s a waste of time in early stage companies to become overly concerned with today’s TAM rather than discussing what changes TAM
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TAM always increases with the best companies so I personally think it’s a waste of time in early stage companies to become overly concerned with today’s TAM rather than discussing what changes TAM
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TAM = a “check the box” question that asks:
“Have you done your homework to objection-handle if the natural market is small?”
Or
“Are you ready to discuss the go to market wedge properly if the market is almost too big and/or crowded?”
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“Have you done your homework to objection-handle if the natural market is small?”
Or
“Are you ready to discuss the go to market wedge properly if the market is almost too big and/or crowded?”
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TAM becomes crucially important later on — just ask any company trying to SPAC (or IPO) in a small or ill understood market, not covered well by analysts.
But I think overly precise TAM analyses creates false comfort early on.
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But I think overly precise TAM analyses creates false comfort early on.
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VCs looking to answer
like: Does founder define market in a way that makes me think differently?
HUGE difference btw well articulated —but could be done by 10 HBS grads— description of a market vs “WOW, that’s a different way to look at a market I took for granted!!”
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like: Does founder define market in a way that makes me think differently? HUGE difference btw well articulated —but could be done by 10 HBS grads— description of a market vs “WOW, that’s a different way to look at a market I took for granted!!”
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Yesterday’s examples of founders who inspired via their market talk 
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Do founders use analogies from other contexts that help optimistic skeptics believe change is happening?!
I remember when @whatdotcd was the 1st to convince me the future Disney is likely to debut on Instagram by taking me through Hatsune Miku and 1000 other examples that
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I remember when @whatdotcd was the 1st to convince me the future Disney is likely to debut on Instagram by taking me through Hatsune Miku and 1000 other examples that
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Another ex: @honey
I was revved up by their frictionless consumer experience + data vision
But I did a terrible job explaining why this was not like similar tools, never brought them into present. Wasn’t able to define their market + product the way they did directly to me
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I was revved up by their frictionless consumer experience + data vision
But I did a terrible job explaining why this was not like similar tools, never brought them into present. Wasn’t able to define their market + product the way they did directly to me
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While VCs can be great storytellers, hallmark of a market powerfully redefined ironically may be when a VC partner cannot convey the story well to their partners
Or the market is written off instinctually but many
Market story must come out of the founders mouths directly!
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Or the market is written off instinctually but many
Market story must come out of the founders mouths directly!
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Big 
Q: Does the market around this company change if successful?
Does company accelerate buying frequency versus market averages?
Move people over from category to another?
Move from utility item to lifestyle or fashion item?
Move up entire market’s price point?
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Q: Does the market around this company change if successful? Does company accelerate buying frequency versus market averages?
Move people over from category to another?
Move from utility item to lifestyle or fashion item?
Move up entire market’s price point?
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And of course, companies changing their market via new approaches to ownership + Leadership: “The @weareangelcity Effect”
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Startup success can be random, success hard to predict, but the biggest long term brands seem to emerge from those who change something structural about the market at a time when the market is looking for change
Look no further than the IPO of a wallet that built an economy
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Look no further than the IPO of a wallet that built an economy
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The $10Bn outcome is understandably stifling for many
So don’t call it
As my grandma would say, you be you
But do paint a picture of a while new world in your market
(End)
So don’t call it
As my grandma would say, you be you
But do paint a picture of a while new world in your market
(End)
