Thinking out loud....So Y Combinator is selling users on fake news that they accept single founders prelaunch ... and what the actually expect is a company that has found product market fit, is making revenue with multiple founder....
To be fair, I do know of some solo founders that did get in pre-product-market fit. I also personally know some who have gotten interviews. But based on my anecdotal evidence, it's super rare. They've been pretty upfront that they do prefer multi-cofounder teams.
Yup, they basically lie. They are heavily biased against solo founders even technical solo founders who already built an MVP and launched, which is weird because with all of the things that can end a startup, being a solo founder is no more likely to cause failure than having a co-founder. Co-founder conflict is a big reason for failing startups too.
I don't think they lie... maybe not intentionally What I know is they invest in founders... the team. If the team has done something similar before successfully, they will fund them without right there and then
So your basically saying build the business with no investment 😂😂 That’s what pre-seed is, no money go drive uber?! If you’re doing that why seek out funding at all?
Goodness this is depressing as an aspiring founder who was seeking to get into YC at the idea stage. Feels like my timing is wrong eternally. I thought the whole “we have revenue” was a given requirement. Apparently I should have been applying in 2021 😢
It's tough, for sure. First, there are still investors who will consider pre-product and pre-revenue, but they really have to believe in you. So, go give them reasons to. Get market validation, pre-sales, etc. I've done crowdfunding in the past. Second, it might be the opportunity for you to rethink how you can bootstrap if you took a different approach. Maybe there's a version of the product you haven't considered that would make money right away, even if you had to do it manually.
I am in the process of starting a mid term rental company that caters to traveling professionals and I’ve been looking for an angel investor. Since the rules have change and I am a start up with no revenue, how do I go about finding investors?
You have to show some form of traction to show that once you get funding you already have customers. I know a founder that started with renting one property manually and then showed demand. She was able to raise $250K.
Hello Ed i have the best idea for startups that is related to my region's hostory and culture. it's something that doesn't exist in the market. and i need help from someone with experience. i have no money but it's my dream. can you help me !! i need guidance.
Ed that was on the money (I wonder if that was a pun !!!) BOOM The free money founders have spoilt it for all others going forward. Your last part (6~7 mins onwards) is absolutely the way to go, to the point it directly affects me. But its true.
Good stuff Ed. I am still working through my MVP with self funding and hope to start putting the MVP in front of customers over the next month or so. Would love for you to take a look and give me your thoughts.
So you are saying you cannot raise pre seed anymore. This widely limits the type of possible start ups. How can we be sure of this assessment cause it doesn’t make sense to me.
Nice video i'm working till now from 4 months to create mvp with my parents funding and i want to get ready fast to launched in market . Basically its a problem to vechile owner to normal people and want your advice to get more confident to start my startup..... Hope you'll reply and get contact....
Hello Edkang. I’ve been working on a text-based social platform and pitched to a couple of people who are in the tech space. I was able to get the attention of someone who was an advisor to a unicorn, Fivetran, and we’ll be meeting at Startup Grind. I’d like to pitch to you to build my confidence more. Is there a chance?
You never know. Micro VCs are typically founders who have an exit and pool their money together. Some of them may still want to do very early stage, but you need to already know them or get a very, very warm intro. I say leave no stone unturned.
yea i noticed that, we had a full product ready for investment... nobody is interested. We worked under the 2020 assumption that investors would come based on a solid product, nope!
So if you happen to have solid deck and an idea validated by at least 20 people with different backgrounds, you can’t consider VC to raise? Talking about an idea with an immense potential and application. This market trend is depressing.
Unfortunately, while validation might have worked in the past, it's not enough for VCs. However, I have seen some startups raise based on validation by very famous people who have also invested their own money. So, if you can get a celebrity to validate and invest, you should be able to get some attention. All startups have massive potential. Right now they just want you to prove it more than in the past. I empathize.
Wise words! I make sure to not only keep your advice in mind, but also educate my fellow startup friends about it whenever I can. I feel like this worth gold today, so people must know about it before it's too late.
Leadership boils down to Personal Preferences and Market demand must be at high levels in my case customers life & property protection from wildfire! Niche & market & physical area matters for no brainer Yes with the Right Team! Being in state of fear is pointless! One can’t sit in a room to come up with “startUp” ideas! The Problem needs to be at 10 level pain point for customers to pitch their vote for our Product (which save their lives) with their money! Gotta specify the fvk In! I don’t believe in MFg startups ideas! My solution to solve specific problems is my gift! I can’t do what other successful entrepreneurs do & neither can they do what I’m capable of! Again being in a state of Fear is infact delusional which will derail any possible opportunity that come your way!
![NEVER Say This To An Investor [9 Things]](/img/n.gif)
One of the most honest and explicit explanation about the current state of startup! Thank you for this!
I super appreciate this feedback. I sometimes question how much honesty to include.
@@edkang99 honesty is always needed due to the fact that most VCs keep information close to the chest.
Thanks Ed,for giving reality check of market .👋
You are very welcome. Thanks for dropping the comment.
Thinking out loud....So Y Combinator is selling users on fake news that they accept single founders prelaunch ... and what the actually expect is a company that has found product market fit, is making revenue with multiple founder....
To be fair, I do know of some solo founders that did get in pre-product-market fit. I also personally know some who have gotten interviews. But based on my anecdotal evidence, it's super rare. They've been pretty upfront that they do prefer multi-cofounder teams.
Yup, they basically lie. They are heavily biased against solo founders even technical solo founders who already built an MVP and launched, which is weird because with all of the things that can end a startup, being a solo founder is no more likely to cause failure than having a co-founder. Co-founder conflict is a big reason for failing startups too.
I don't think they lie... maybe not intentionally
What I know is they invest in founders... the team. If the team has done something similar before successfully, they will fund them without right there and then
So your basically saying build the business with no investment 😂😂 That’s what pre-seed is, no money go drive uber?! If you’re doing that why seek out funding at all?
I definitely see this happening in the French venture world too. Very relatable!
Good to know! Thanks.
You are highlighting the truth because i sent me pitch deck to like 20 ventures and have been waiting long for their reply
Quite informative!
Thanks for sharing.
Glad it was helpful!
I'm unable to get pre seed fund for my startup looking for VC,s please can you help 🥺
Best advice and content for us entrepreneurs. Thank you 👏
I appreciate that!
Goodness this is depressing as an aspiring founder who was seeking to get into YC at the idea stage. Feels like my timing is wrong eternally. I thought the whole “we have revenue” was a given requirement. Apparently I should have been applying in 2021 😢
Great advice. I booth strapped my MVPs and working on finding a way to monetize (Uber driver)
Love it. Keep it up!
Did you really start driving for Uber?
ok, and if you are pre seed, and you need $ to kick off, how you do it?
It's tough, for sure. First, there are still investors who will consider pre-product and pre-revenue, but they really have to believe in you. So, go give them reasons to. Get market validation, pre-sales, etc. I've done crowdfunding in the past. Second, it might be the opportunity for you to rethink how you can bootstrap if you took a different approach. Maybe there's a version of the product you haven't considered that would make money right away, even if you had to do it manually.
we're in this boat, if you have no clear PMF you;re out of luck basically.
So basically there’s no such thing as pre-seed VCs & Angel Investors anymore?
There are, but the barrier of entry is changing. But there will always be pre-seed angels who will invest based on their own preferences pre-seed.
Thanks for your reply! How would you suggest going about raising capital pre-seed when you’re not generating revenue as yet
I am in the process of starting a mid term rental company that caters to traveling professionals and I’ve been looking for an angel investor. Since the rules have change and I am a start up with no revenue, how do I go about finding investors?
You have to show some form of traction to show that once you get funding you already have customers. I know a founder that started with renting one property manually and then showed demand. She was able to raise $250K.
I need you to help me review and help with my pitch deck and also even become an advisor
When you're ready. Send your pitch deck to advisor@startups.com
Very true. Thank you for sharing.
Thanks for watching and you are welcome.
This is for institutional tho right? The advice in this video is NOT for small family angels , wealthy but non-institutional angels etc?
Hello Ed i have the best idea for startups that is related to my region's hostory and culture. it's something that doesn't exist in the market. and i need help from someone with experience. i have no money but it's my dream. can you help me !! i need guidance.
Ed that was on the money (I wonder if that was a pun !!!) BOOM
The free money founders have spoilt it for all others going forward.
Your last part (6~7 mins onwards) is absolutely the way to go, to the point it directly affects me. But its true.
Thanks a lot Ed!
Good stuff Ed. I am still working through my MVP with self funding and hope to start putting the MVP in front of customers over the next month or so. Would love for you to take a look and give me your thoughts.
When your pitch deck is ready, let me know.
So you are saying you cannot raise pre seed anymore. This widely limits the type of possible start ups. How can we be sure of this assessment cause it doesn’t make sense to me.
Nice video i'm working till now from 4 months to create mvp with my parents funding and i want to get ready fast to launched in market . Basically its a problem to vechile owner to normal people and want your advice to get more confident to start my startup.....
Hope you'll reply and get contact....
When you're ready, send your pitch deck to advisor@startups.com - happy to take a look.
Hello Edkang. I’ve been working on a text-based social platform and pitched to a couple of people who are in the tech space. I was able to get the attention of someone who was an advisor to a unicorn, Fivetran, and we’ll be meeting at Startup Grind. I’d like to pitch to you to build my confidence more. Is there a chance?
Send me your deck to advisor@startups.com and let's start there.
@@edkang99 okay. I’ll send it in. Thank you!
@@edkang99 I'm sending you mine too ;)
So Micro VCs are no longer funding companies to build out their MVPs…..check. No pun intended.
You never know. Micro VCs are typically founders who have an exit and pool their money together. Some of them may still want to do very early stage, but you need to already know them or get a very, very warm intro. I say leave no stone unturned.
yea i noticed that, we had a full product ready for investment... nobody is interested. We worked under the 2020 assumption that investors would come based on a solid product, nope!
Hahah I feel your pain and empathize. Been there as well.
Holy cow, $246b?! Is there a known "usual" range this falls within annually? 🤯
Good question. I've never looked, actually. Let me poke around because I would like to know myself.
So if you happen to have solid deck and an idea validated by at least 20 people with different backgrounds, you can’t consider VC to raise?
Talking about an idea with an immense potential and application. This market trend is depressing.
Unfortunately, while validation might have worked in the past, it's not enough for VCs. However, I have seen some startups raise based on validation by very famous people who have also invested their own money. So, if you can get a celebrity to validate and invest, you should be able to get some attention. All startups have massive potential. Right now they just want you to prove it more than in the past. I empathize.
we have a full product that we can sell, almost. No interest from investors whatsoever. That is aleady considered to be too high risk these days
Wise words! I make sure to not only keep your advice in mind, but also educate my fellow startup friends about it whenever I can. I feel like this worth gold today, so people must know about it before it's too late.
Thanks Peter!
Great video 👍🏽
Glad you enjoyed
my wife is always asking for more seed (pun possibly intended)
;)
Leadership boils down to Personal Preferences and Market demand must be at high levels in my case customers life & property protection from wildfire! Niche & market & physical area matters for no brainer Yes with the Right Team! Being in state of fear is pointless! One can’t sit in a room to come up with “startUp” ideas! The Problem needs to be at 10 level pain point for customers to pitch their vote for our Product (which save their lives) with their money! Gotta specify the fvk In! I don’t believe in MFg startups ideas! My solution to solve specific problems is my gift! I can’t do what other successful entrepreneurs do & neither can they do what I’m capable of! Again being in a state of Fear is infact delusional which will derail any possible opportunity that come your way!
That or I’ll have to land a contract from the military
That definitely would help!
300 million in funding and they failed yikes they had no plan or strategy. Damn.
Soon we have something called pre-pre-seed lol. Sorry, but the pre-seeds are BS.