If you were an investor with capital, what would you want in return for your investment? Every investor, whether it’s a venture capitalist, angel investor, or even a family member, has their own unique “sweet spot.” These are the specific things they care about most, and it’s crucial to tailor your pitch to match their interests. Take this example: an entrepreneur once raised $20 million by meeting with around 100 investors, one-on-one, in various settings. Each investor had a different sweet spot. Some cared about healthy profit margins, while others were more interested in intellectual property protection. You might think, “Who wouldn’t want profit margins?” Well, when Mark Zuckerberg was raising funds for Facebook, he didn’t have profits or even sales to show. What he had was a clear path to customer acquisition. When Facebook had about a million users, the famous Peter Thiel, said, “I’ll give you $5 million if you can show me how you’ll get to ten million users.” Mark did exactly that, and Peter got 10% of Facebook for his $5 million investment. In 2012, Peter cashed out for $1 billion. Not a bad return!!! So, when pitching to investors, focus on their sweet spot: - SHOW A REAL PROBLEM that needs solving. - CONVINCE THEM that NO ONE ELSE is solving it quite like you. - Look for a MAGICAL TRANSFORMATION, for example, something in your product or service that will make a significant, visual, and lasting IMPACT on people’s lives. The clearer and more aligned your pitch is with what your investor cares about, the more likely you are to secure the funding you need. --- If you're currently raising funds, especially seed funding, for your startup, let's connect. I help tech startup CEOs refine their pitch, target the right investors, and secure the capital they need to grow and scale. #raisingfunds #startups #seedfunding #techceos
Marco Bagheri, PhD’s Post
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It puts a smile on my face when I hear investors say that this product or service idea makes no sense because other companies in the past tried it and failed. When Facebook was starting, there were tons of social networks out there, and they all were failing investors. Friendster was one of them, and it was actually the one Peter Thiel compared to Facebook during his investment analysis. And guess what? He wrote a check for $500,000, which turned into over $1 billion just eight years later! So, past failures of others are NOT a good measure of the chances of success for newcomers. #VC #startups #investors
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Congrats to Pablos Holman on launching a fund to back the ‘mad scientists’ like him that SAASholes (his term for traditional investors who only invest in Enterprise Software 🙂) are afraid of and won’t touch [Business Insider link below] Pablos worked for Nathan Myrvhold at Intellectual Ventures whom I interviewed when I co-ran the Co-Founder Connect/Hacker News meetup. One of the questions I asked him was related to this i.e. those who had invested in cleantech, energy, biotech and other important things that could improve society in the prior decade had mostly lost money. While those that invested in Facebook, WhatsApp, photo-sharing apps, and other ‘fluffy’ companies had been rewarded handsomely. Parts of Myrvhold's response: “Nothing in life that is non-trivial turned out the way you planned. When someone tells me ‘failure is not an option for us’ I say to them, then what you are doing something so simple and straightforward that failure isn’t an option. You're playing it insanely safe and trying to be all macho. If I am involved, failure is an option.” But it is better to fail doing something worthwhile than chasing the next fluffy company. The median return across all venture investing is close to zero. We court a different set of investors who understand what we are doing (Bill Gates is the primary one). If you want to be like Mark Zuckerberg, you can’t simply copy what he did. There’s luck and timing and a strong selection effect. You first need to look at all those who are not Mark Zuckerberg who failed. Link to Geekwire story below as well. Vlad Mkrtumyan #vc #hardtech #investing #facebook #startups
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Back in 2004, Peter Thiel decided to put $500,000 into Facebook, a move that proved to be incredibly smart. When Facebook went public in 2012, Thiel sold shares worth over $1 billion. This represents a Multiple on Invested Capital (MOIC) of 2000 and an Internal Rate of Return (IRR) of approximately 158.60% per year. As of 2024, his net worth from Facebook is estimated to be around $7.2 billion. This significant return on investment is a testament to Thiel’s vision and strategic decision-making in backing Facebook early on. 🧠 Follow A2D Ventures for angel investing knowledge. 🚀 Discover high-potential early-stage startups at a2dventures.com/register #Facebook #Startup #Angellnvestor #AngelInvesting
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The game of #VC #Funding has changed from #HighRisk-#HighProfit Financing to #Probabilistic above #Benchmark Returns. This trend atleast to me seems to be hurting the sentiments of the community but as all things change, we need to accept this one as well. Sharing something for the old-time sake when #metrics and #analytics were not very important but #instinct, #businesssense & #intuition played major role in VC Funding. 10 #Unicorns That #Defied All VC #Metrics—and Won! In the high-stakes world of #venturecapital, metrics like #burn rate, #MRR (Monthly Recurring Revenue), #ARR (Annual Recurring Revenue), and #runway often dictate #funding decisions. But every so often, a #startup comes along that breaks all the rules—and still goes on to become a billion-dollar unicorn. Here are 10 startups that were funded despite defying conventional VC logic: 1. #Uber: Launched without a clear revenue model and burned cash heavily to scale, yet it revolutionized transportation. 2. #Airbnb: Dismissed by many due to its “unscalable” concept and lack of initial revenue, it redefined the travel industry. 3. #Pinterest: No revenue for years and questionable monetization strategies initially, yet it became a global sensation. 4. #Twitter: Early-stage doubts over its monetization plan didn’t stop it from securing funding and becoming a social media giant. 5. #Snapchat: No revenue, no clear runway, and a high burn rate—but its innovative approach to communication captured VC attention. 6. #Instagram: Funded on the strength of its user growth and idea, long before it made a single dollar in revenue. 7. #Dropbox: Backed for its vision despite concerns over its high customer acquisition costs and missing profitability. 8. #Robinhood: Funded with no revenue model and a controversial idea to eliminate trading fees, now a fintech leader. 9. #WhatsApp: Prioritized growth over revenue for years, yet its simplicity and reach attracted VC funding. 10. #Tesla: Skeptics pointed to its massive burn rate and delayed timelines, but its vision for the future of mobility won over investors. What’s the lesson here? VCs don’t just fund metrics; they fund potential! These startups showcased bold #ideas, massive #marketopportunities, and #visionary #teams, proving that the right story and belief can outweigh spreadsheet numbers. For founders, the takeaway is simple: If your startup lacks perfect metrics, don’t lose hope. Build your narrative, highlight your vision, and demonstrate your market impact. Which of these stories inspires you the most? Share your thoughts below! #Unicorns #Startups #VentureCapital #Innovation #Entrepreneurship #excessedgeexperts #excessedgeexpertsconsulting
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𝐇𝐨𝐰 𝐒𝐞𝐪𝐮𝐨𝐢𝐚 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐓𝐨𝐨𝐤 𝐚 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐃𝐨𝐥𝐥𝐚𝐫 𝐑𝐞𝐯𝐞𝐧𝐠𝐞 𝐨𝐧 𝐌𝐚𝐫𝐤 𝐙𝐮𝐜𝐤𝐞𝐫𝐛𝐞𝐫𝐠👇 In 2004, Mark Zuckerberg was not very sure about running Facebook forever. He had another startup called Wirehog. Zuckerberg was trying to find venture investors for his startup when he was approached by Sequoia Capital, but Mark didn't want to raise from Sequoia because his friend Sean Parker had earlier raised capital from Sequoia but it didn't go well. So Mark, at his end, was very sure that he didn't want to raise capital from Sequoia, so he decided to play a prank on them. The meeting with Sequoia partners was scheduled for 8 am, but Mark intentionally arrived late while wearing pajamas. He then presented a PowerPoint deck titled 'Top 10 Reasons You Should Not Invest in Our Startup.' He pointed out reasons such as 'We have no revenue,' 'We might get sued,' and 'We showed up at your office late in our pajamas.' Sequoia obviously didn't invest in Wirehog, nor did it get a chance to invest in Facebook. The partners at Sequoia were not very happy with this incident. However, Sequoia soon got revenge on Mark. Exactly 10 years after this incident, in 2014, WhatsApp was acquired by Facebook for a whopping 19 billion dollars. And guess which venture capital firm was the sole investor in WhatsApp? None other than Sequoia Capital. Sequoia had invested around 61 million dollars in WhatsApp in exchange for around an 18 percent stake in the company. Sequoia made around 3 billion dollars from this deal, which is a 50x return on investment. Not just WhatsApp, but Sequoia also got a little revenge when Facebook acquired Instagram in 2012. Sequoia was also an investor in Instagram and made millions of dollars in this deal. Finally, Sequoia Capital had the last laugh in this entire saga. 😄 Follow Vrishank R. for more such interesting content revolving around the Venture capital ecosystem. #facebook #venturecapital #sequoia #investments #markzuckerberg
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I get why the startup model of building a product on one of the big LLMs is appealing. The founders of the 2010s and their predecessors would have wept if they’d seen the power of what these models can do. But building a whole startup on a tech giant’s multi-billion-dollar LLM is a risky business. Here are two reasons why it would pay for entrepreneurs to think twice about going down this path. First, building on someone else’s foundation makes your business vulnerable to their whims. Any shift in their pricing, business model or policies could have ripple effects across your entire venture. History is littered with companies who learned this lesson the hard way. Remember all those Twitter clients from the 2010s? Second, everyone else knows about the power of LLMs, and you can bet they’re coming up with business ideas based on them. So, if you follow that pack, what’s your unique edge? What can you offer that can’t be replicated by someone else who’s using the same technology? I’m not saying that building on LLMs is never a smart move, but it demands foresight. Are you a true extension of the platform, adding something no one else can? Or are you at risk of becoming a mere feature that others can copy and the platform itself can roll out if it wants to? These are the questions that separate a short-term win from a sustainable, impactful business. #technology #startups #deeptech
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In 2005, David Choe was offered $60,000 to graffiti a mural at Facebook's first office in Palo Alto. When the mural was finished, Facebook president Sean Parker gave Choe a choice. $60,000 in cash or stock options. Choe needed the money. At that time, Facebook was just a year old—an unknown platform with no revenue and no hype about a future $5 billion IPO. Instead of taking the cash, Choe gambled and took the options. His gamble paid off big. When Facebook went public at $38 a share in 2012, his stock options were worth $200 million. #venturecapital #startups #socialmedia _____ Enjoy this? Follow Kevin Jurovich for daily startup & VC insights and the occasional meme. ✌️
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Life and success is a series of trade-offs. Whether it’s successful executives, founders or investors one trait I have seen they all possess is the ability to make trade-offs. Do you choose the bold unknown long term path or the secure tangible immediate gain? Thanks to Kevin Jurovich for sharing this post! He posts great insights on success and leadership. Please follow him! Great story about Facebook and David Choe! #iim #iit #startup #stanford #startx #ucberkeley #berkeleyskydeck #falconx #techstars #500global #plugandplay #pearvc #ycombinator #foundersinstitute #startups #venturecapital #privateequity #entrepreneurship #neo
In 2005, David Choe was offered $60,000 to graffiti a mural at Facebook's first office in Palo Alto. When the mural was finished, Facebook president Sean Parker gave Choe a choice. $60,000 in cash or stock options. Choe needed the money. At that time, Facebook was just a year old—an unknown platform with no revenue and no hype about a future $5 billion IPO. Instead of taking the cash, Choe gambled and took the options. His gamble paid off big. When Facebook went public at $38 a share in 2012, his stock options were worth $200 million. #venturecapital #startups #socialmedia _____ Enjoy this? Follow Kevin Jurovich for daily startup & VC insights and the occasional meme. ✌️
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🌟 Celebrating the Best Angel Investors of All Time 🌟 Angel investors play a pivotal role in the startup ecosystem, providing not only capital but also invaluable mentorship and connections. Today, let's celebrate some of the most iconic angel investors who have left an indelible mark on the entrepreneurial world. Ron Conway 🦸♂️ Known as the "Godfather of Silicon Valley," Ron Conway has invested in hundreds of startups, including Google, Facebook, and Airbnb. His keen eye for potential and his extensive network have made him one of the most influential figures in tech investing. Reid Hoffman 🌐 Co-founder of LinkedIn, Reid Hoffman is celebrated for his strategic mind and deep understanding of networked businesses. His investments in Facebook, Airbnb, and Dropbox have solidified his reputation as a visionary angel investor. Peter Thiel 💼 Co-founder of PayPal and the first outside investor in Facebook, Peter Thiel's investment acumen is legendary. His fund, Founders Fund, continues to back groundbreaking companies, cementing his status as a top-tier investor. Chris Sacca 🎯 Founder of Lowercase Capital, Chris Sacca has been an early investor in Twitter, Uber, and Instagram. His knack for identifying disruptive startups early on has earned him a spot among the best angel investors. Esther Dyson 🚀 A pioneer in tech investing, Esther Dyson's portfolio includes successful companies like Flickr and Evernote. Her deep involvement in the tech community and her forward-thinking approach have made her a respected name in angel investing. Paul Graham 🧠 As the co-founder of Y Combinator, Paul Graham has nurtured and funded numerous successful startups, including Dropbox, Reddit, and Stripe. His influence extends beyond funding, shaping the very fabric of the startup ecosystem. Naval Ravikant 📈 Co-founder of AngelList, Naval Ravikant has invested in over 100 companies, including Twitter and Uber. His insights on startups and investing are highly regarded, making him a thought leader in the angel investing community. These individuals have not only provided the capital that helped startups grow but also offered mentorship, guidance, and invaluable connections that have propelled countless entrepreneurs to success. Their legacies inspire the next generation of investors and entrepreneurs to dream big and strive for greatness. 🚀 Who else do you think deserves a spot on this list? Share your thoughts in the comments! #AngelInvesting #StartupSuccess #Entrepreneurship #Investors #StartupJourney #Innovation
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"𝐓𝐡𝐞 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐌𝐢𝐧𝐝𝐬𝐞𝐭: 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐚 𝐒𝐭𝐚𝐧𝐟𝐨𝐫𝐝 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐨𝐫" Recently, I came across a fascinating talk by Professor Ilya Strebulaev from Stanford, who shared his 20 years of research on venture capital and innovation. It completely changed how I think about the venture capital world. Many people assume it’s a gamble, but Professor Strebulaev made it clear—it's about having the right mindset. 𝑯𝒆𝒓𝒆 𝒂𝒓𝒆 𝒂 𝒇𝒆𝒘 𝒌𝒆𝒚 𝒕𝒂𝒌𝒆𝒂𝒘𝒂𝒚𝒔 𝑰 𝒇𝒐𝒖𝒏𝒅 𝒓𝒆𝒂𝒍𝒍𝒚 𝒗𝒂𝒍𝒖𝒂𝒃𝒍𝒆: 1. 𝐇𝐨𝐦𝐞 𝐑𝐮𝐧𝐬 𝐌𝐚𝐭𝐭𝐞𝐫, 𝐒𝐭𝐫𝐢𝐤𝐞𝐨𝐮𝐭𝐬 𝐃𝐨𝐧’𝐭 It’s not about how many times you fail, but the few times you succeed. In venture capital, only one out of 20 investments might hit big, but that single success can be worth more than all the losses combined. It’s a lesson for life—focus on the potential wins, not the failures. 2. 𝐆𝐞𝐭 𝐎𝐮𝐭𝐬𝐢𝐝𝐞 𝐭𝐡𝐞 𝐎𝐟𝐟𝐢𝐜𝐞 The best VCs don’t just sit in their offices—they go out and find opportunities. Sequoia's investment in WhatsApp, for instance, came after they literally knocked on doors in Mountain View to find the founders. It’s a reminder to actively seek out opportunities rather than waiting for them to come to you. 3. 𝐓𝐡𝐞 𝐏𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐌𝐢𝐧𝐝 As Louis Pasteur said, "Chance favors the prepared mind." VCs don’t rely on luck—they are prepared. Whether it’s responding to investor inquiries or recognizing the right moment, preparation is key. That’s something I’m working on—being ready for the right opportunity when it comes. 4. 𝐒𝐚𝐲 𝐍𝐨 100 𝐓𝐢𝐦𝐞𝐬 For every deal that VCs say "yes" to, they say "no" to hundreds. They narrow down their options by asking, “Why shouldn’t I invest in this?” It’s a lesson I think can apply in everyday decision-making—expand your choices first, but always start by figuring out why you shouldn’t commit. This talk was a great reminder that whether you’re investing, starting something new, or just navigating life, success comes from persistence, preparation, and being okay with failure. #VentureCapital #Startups #Innovation #GrowthMindset #LifeLessons
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