Fundability

0:03 Welcome to business purpose and Clarity with patreon your host we talk about startup live insights practical tips mistakes failures and everything between it's the term this year it's the term probably next year it's the term you should think about are you fundable few would be the investor would you invest on your case this is um putting less money even though they might have the funds and the means to do it but they are investing less and they are seeing a lot of cases they're seeing really good cases and they are prioritizing obviously the best cases taken get and see the difficulties for you as a startup founder That You Don't See other cases like the VCS do so you don't know your and the competition is not really in a sense that they do the same stuff you're doing they may be doing something completely different but still in the.

1:07 Field that it's somewhere where the investor can invest there might be cases where there are companies who are really hitting it in a sense that they they have let's say started 20 months ago didn't have any revenues now they have go 1 million ARR or next year they have already like 10 million ARR deal flow and data hitting the code to Market and and product markets fit in a way that you haven't well what would you do if you're the would you take that case or would you take your case where the numbers are not exactly that impressive well it's an obvious rhetorical question you know the answer for that one like everybody else so are you fundable how are your numbers how good is your case at this point can you scale can you turn profitable if you like if you've been growing and now it's a.

2:10 Harder time so the cast is King and it's good to keep your customers and if it's getting more expensive or difficult to get new customers so you probably should cut the costs and survive if you cannot due to explosive growth what you were planning to do are you really the global player if you're planning to crawl rapidly you planning to go to the international States and if you've already been for example in the market a bit and you've been doing some precede seed crowns and you're aiming for series a for example are you material enough to become the global Regional player for example in the EU Market or or in the U.S market what probably is the case if you're going to Serious a or b or any of these alphabets because that means that your product should already work the cases I was checking out last year 2020 oftentimes they look good but when you start to scratch a little bit of the.

3:13 Surface you start to see that there's stuff which is not really working so the fundability yeah it looks good I love the the people I like the product I like the markets a lot of stuff is in put like in startups not all the stuff is in place but in some cases when you honestly looking at the companies there's this one thing which is not in place and unfortunately in a lot of these cases that's the crucial part it's different in different companies but it's still there and it means that the aspiration you're the valuation you're having and the crowd plan you're having I didn't see it happening knowing what the investors are seeing and what they're looking for at this time that's the tough lesson it's not nice to say that to the founders but it's even more important that you know that okay we need to be really realistic about what we're doing now in some cases it's not actually easy.

4:17 To to fix it or I don't think it's fixable even if there's no classic chains is that if you don't have that quality to go global for example in one case what I saw was that and this was in the but it's like the foundation what really makes you drive in a further in your growth because if you have the papers and you have the structures they will support you and make it possible for you to to take more investor money more faster but if you don't have those things in place they will become an issue for you and this in this one case I saw that because they haven't done the homework they haven't done those things it's not something that you cannot do but it's just actually saw something about the case that um they don't need to realize they don't prioritize or they don't consider it as.

5:19 An important thing that's just signals without going to the details why that they cannot become the the company they want to be that's why they're getting a lot of note that's why investors are saying no so what do you do well talk to your Founders other Founders you know try to help each other out and sometimes you can fix things sometimes you need to change stuff and sometimes you just need to adjust your expectations and run the company accordingly.