a day ago
- Investors are the critical ingredient in a startup hub, with angel investors being more important than VCs for early-stage funding.
- Most investors are momentum investors who rely on signals like traffic and other investors' opinions rather than deep technological understanding.
- Investors vary greatly; top-tier VCs are smarter and more confident, while others may be timid and risk-averse.
- Valuations are largely artificial and often driven by deal size; founders should focus on outcomes rather than high valuations.
- The fundraising process is costly in time and momentum; investors often delay decisions and dislike saying no.
- Founders can improve their position by not needing investors and having backup plans; investors prefer startups that are rough with them.
- Investors often collude and care about their portfolio, not individual companies; they may push for risky kill-or-cure strategies.