Our objective at Betatron is to take our startups from the seed-stage to raising their first institutional investment round.
To assist with this process, last Friday at Vectr Ventures, we hosted a private VIP event for our startups and investor network.
Raising funding from angel investors is a completely different job than closing investment from VCs.
Investor's invest in LINES not DOTS.
What does this mean?
There's a great article by the successful VC, Mark Suster, which explains this concept.
The first time you meet an investor you are a DOT. A single data point.
Investors have no reference from which to judge whether you were higher on the y-axis 3 months ago or lower.
Therefore, meet potential investors as early as possible and tell them what you plan to achieve by the next time you see them.
Next time you meet the investor, hopefully, you'll have made good progress on your product, customer adoption, employees, investors, media, etc.
You’ll be able to give them updates on your traction and the KPIs your measuring.
Investors want to see patterns. And see that you are making progress in your business and not standing still.
Top 10 Risks Being A Startup Founder
We all know the benefits of being an entrepreneur.
But what are the risks? What do you need to be aware of before you scale your startup?
Last week, our legal mentor, Padraig Walsh (Partner at Bird & Bird), came in to hold a workshop on some of the major risks which founders need to understand.
Do you have an effective shareholder's agreement with your founding team?
Do you have the optimal equity structure which allows you to scale?
Have you raised funding from angel investors on terms which mean VCs will never invest?
The earlier you address these legal issues, the fewer problems you'll have when it's time for you to scale.
If you don't, it could kill your startup.
Here are some updates from our startups this week.
OMyCar are in partnership discussions with insurance companies for their Usage Based Insurance (UBI) product.
EyesOn has been developing their consumer-facing, Chinese e-commerce platform and discussing a strategic partnership with a logistics company.
KidHop has been focused on adding more value to their clients by developing CRM features for their activity providers.
CAPSL are developing a mobile spectator AR prototype for their e-sports gaming platform.
Now that cohort 2 is up and running, and the startups are generating traction, it's time to start planning the next cohort.
The aim is to launch cohort 3 in late March 2018 with exciting new investment terms currently being finalized.
I'll let you know when we open applications.
Can't wait until then? Reach out and tell me what you're working on.
The earlier you pitch, the easier it will be for us to "connect the dots".