Today's thread is on how to go back to an investor after being turned down.

Is it worth it? And if so, what should your approach be?

Read on >>
1) Let's say you have a great experience (and to be clear, if you have a bad exp, then you may not want to go back!) with an investor but are turned down.

Should you go back?

I think this is a q so many ppl wrestle with but is not talked about much.
2) It is totally fair game to go back and try to re-pitch.

BUT to give this your best shot, you'll need to take in the feedback you received from said investor and address it.
3) As with any other "sales pitch" it is much more impt to listen and address the concerns than it is to keep talking / pitching.
4) This will also set you apart from probably 90% of the ppl who try to re-pitch investors.

I can't tell you how many times ppl think they have hustle by just following up with the same pitch.

You have to adjust based on the feedback. Otherwise, you'll get the same response.
5) E.g. If an investor says "I think..."

-the valuation is too high, you can't go back w the same valuation

-the market is too competitive, you have to address how it's not or not what they think it is

-your traction is too early, you have to go back w/ more traction
6) Now, you may disagree and move on / decide it's not worthwhile to continue pitching that investor.

But if you want to go back to that same investor, you have to address the concerns.
7) Moreover, if you don't address the concerns, it reflects poorly on you -- that you don't listen / hear others, which is incredibly impt as the #1 salesperson of your company.
8) About 3-5% of portfolio companies @HustleFundVC are companies we turned down initially but then later invested.

Here are some reasons why:
-changed ideas altogether
-changed biz model
-changed valuation
9) We always feel lucky to be able to get a 2nd shot on goal in these cases.

But I think more importantly, often it's these founders who are above-and-beyond impressive in their ability to read signals and react / respond / change.

This demonstrates thoughtfulness.
10) tl;dr

Persistence isn't just about sending off the same pitch over and over to an investor.

It's about taking in feedback / signals, thinking about them, and addressing them.

And if you can do that, in many cases, it may make sense to re-approach an investor.

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More from @dunkhippo33

19 Jul
A short building-in-public tweet thread on how we're thinking about meeting up in person both within our team and within our larger @HustleFundVC community

Read on >>
1) Everything is a moving target, so I'm sure our stance will change in 2 months.

But, for now, we see the SF Bay Area as a place where we feel safe & confident enough to meet up in person w/ the high vaccination rates here.

As such, we are doing our in-person team offsite here
2) That said, COVID-19 is still bad in many other places and/or it's still hard for many of our team members to come to the US either because of the US visa backlog OR strict quarantining laws abroad.

Our offsite will be missing team members. :(
Read 6 tweets
15 Jul
Every conversation I have with early stage VCs seems to lead to how crazy the market is.

And whether the frothiness will continue or stop in the next year

More >>
1) To be clear, this is in reference to a lot of mind boggling series A rounds being done recently.

AND not every company is raising these crazy rounds. But enough to make ppl talk.
2) Specifically what I’m seeing a lot are companies with limited traction - what I would call “seed traction” get huge multiple mark ups on valuation.

Series A valuations at 100x (or more) of yearly revenue!
Read 10 tweets
14 Jul
Today's building in public thoughts - it takes a long time to build processes, set culture, hire, onboard, and build out a generational business.

And this is what we've thought about and have been working towards since day 1 of @HustleFundVC.

Read on >>
1) A lot of entrepreneurs ask me / cold-email me, "Have I seen their deck yet? Or can they chat with me?"

In most cases, the surprising answer is no.

Although we're only on Fund 2 of Hustle Fund, I'm actively working on the transition of this.
2) Don't worry future LPs, as a GP, I'm still involved in the final decisions!

But, it's important to work towards scaling the operations of this business so that if I get hit by a bus, I'm not needed.
Read 12 tweets
13 Jul
There are many confusing things about the definition of product-market fit. How speed factors into it is one of these confusing points.

Today's thread is a deep dive into that.

Read on >>
1) First, what is product-market fit?

I've tweeted about it here a while back:
2) @hnshah has a great compilation of other people's definitions which all get at the same thing:

Read 18 tweets
2 Jul
A # of friends who have had success w angel investing have asked me whether they should start a microfund.

There are reasons to do it & also not to but today’s thread is strictly about the economics.

Tl;dr most fund mgrs - even the best - won’t make much $$.

Read on >>
1) When most ppl say VCs are rich, they are really talking about big vcs.

In fact, many microfunds have a worse cash position than many of the startups they back!
2) Most fund mgrs get paid on a 2 and 20 model.

The 2 represents 2% - this is the budget of the fund.

So a $10m fund * 2% yields $200k in budget every yr for 10 yrs.

This budget covers salaries but also marketing, travel, etc
Read 17 tweets
29 Jun
We have over 270+ portfolio companies @HustleFundVC now of which, I'm the point of contact for.

People often ask me how do I have time to take so many meetings??

Here's my secret and an unpopular tactic...I relentlessly cut mtgs.

Here's how / why / and gains I've seen >>
1) First, the pros and cons of mtgs:

-feel connected w/ someone

-inefficient time use to receive ideas
-inefficient way to do actions
-introduces weird biases
2) So given this, if you need to build rapport w/ someone, then you should definitely take the mtg. In fact you should take lots of mtgs!

This could be for:
-building morale w/ a teammate / founder / etc
-building a relationship w/ someone you're trying to recruit for something
Read 18 tweets

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