Congrats, you just closed a round!... Now what? + Fundraising Fieldnotes - 1.28.22
The most valuable post-close steps a founder can take
Hey - it’s Jason Yeh 🕺🏻
This is my Friday recap of thoughts I’ve had while helping founders solve their fundraising challenges this past week (1.28.22)
If you have any questions, please reply! I try to get to every comment/question I get :)
On to the Fieldnotes for 1.28.22…
Congrats, you just closed a round!... Now what?
As much as this newsletter focuses on actions and frameworks that will help you secure outside investment, the reality is successful fundraising is just one small part of the startup journey. The stress you feel preparing to raise will of course fade away once you close a round of capital, but the majority of your problems will not.
Many founders will share similar stories of a few moments of bliss and satisfaction after finishing a fundraise before reality sets in. The one problem you solved is quickly replaced by new problems including worrying about the next fundraise in 12-18 months.
The biggest thing to know is that other than the immediate need for capital, raising money does not fix any problems you had before. If you didn't have product-market fit, convincing investors to give you money does not mean you actually had product market fit. If you had a badly organized team with terrible processes beforehand, raising capital does not mean your company is suddenly a well-oiled machine. If you had problems as a leader, more money in your bank account will not instantaneously change you into Satya Nadella.
Here’s the key: once you close capital, one of the first things you should do is take stock of issues that need to be addressed and create plans to solve your problems.
If you were in pursuit of product-market fit before raising capital spending, you can’t skip steps. Don’t move to scaling your product just because you have the money to do it. Keep executing the process to find product-market fit.
If you are self-aware and know that you need to improve as a leader, get yourself a coach and mentors.
Great. Thanks for reminding me of our problems. What can I do?
Here are a few ways you can take advantage of your momentum right now to address your problems.
Weekly Fieldnotes 👇
I like remembering all the Pixar bangers in the context of startup advice
More insights into investor psychology. Devour these
Holly @hollyhliuAfter interviewing hundreds of founders at YC and now doing mock interviews, here is my most repeated advice. 4 questions investors are trying to answer: 🧵
Till next week. Stay adamant and be chased.
P.S. woof it’s been a wild crypto ride, eh?
In case you missed it…
Last week’s post addressed what founders must consider before shifting to web3 to fundraise
If you thought this was helpful or enjoyable in any way, I’d love for you to:
Forward this newsletter to others who would enjoy it
Listen with a friend to Funded, my podcast that tells the rollercoaster stories of how founders raised millions (and subscribe🙏)
Ask me your fundraising questions so I can help you and cover them in a future issue