Discover and read the best of Twitter Threads about #theclimbtoabillion
Most recents (3)
1/ I recently spoke to @AccelepriseSF’s 9th cohort. Topic turned to how to approach #angelinvestors for #seedrounds. I shared some of these thoughts with @TomTaulli on @Forbes, forbes.com/sites/tomtaull…
but let me expand...
but let me expand...
2/ According to @ACAAngelCapital, every year +200k angels invest +25 billion in +71k startup deals! This has changed 3 big things: 1. how formal VC firms operate 2. Silicon Valley’s stranglehold on talent 3. How founders raise funds. Let me explain.
3/ Let’s start with VCs. Initially wary of angels as competitors, they realized that letting angels take the initial bets actually helps reduce risk, letting them focus their own bets. Win.
Thread: Founder/CEO reached out this week for advice. 18 people, one other co-founder, just closed the Series A. Specifically wanted to know how do you learn "trust others" and "distribute power" without "jeopardizing what has been built thus far".
First, huge congrats, Series A a HUGE milestone! And big props for approaching subject with honesty and open mind. Second, suggested she look at this through the lens of managing shift from a 2-tier org (mgr->individuals) to a 3-tier org (m>m>i).
Assuming mgrs have 7 directs on avg, shift happens between 8-57 ppl. Usually around 20-25 ppl. A 2-tier org is flat, everyone reports to CEO (or other co-founder) & knows what all others doing, roles are fungible, decision making is obvious, CEO can direct all decisions
Thread: Had a 90 min walk with a founder asking for advice. The good: i) Strong growth. Triple digit annual growth as a sub 10M ARR company - check ii) Runway. 6-8 qtrs of cash - check iii) Valuation. Should easily clear last round post at conservative 10x ARR - no down round!
The challenges: i) Scaling sales. Tenured reps rocking it, new reps not so much. Suggested it's time to crystallize the play book, especially around how to ID a real deal. Could take a few quarters to work out.
ii) Management. At 100+ employees the VPs need to be manager of managers. Not all are ready. CEO needs to learn to groom managers of managers, start to be more hands off, still be in details but focus on alignment and accountability.
