It’s NY Tech week and my new favorite thing is teaching underrepresented founders how to talk back to investors. So many of them ask me for help fundraising, and I get it. I may not always think of myself as an expert, since I’m lucky enough to surround myself with people who are much more experienced at it than I am. But we did do it successfully once, raising more than $3M along the way with little more than a deck, a dream, and an incredible founding team. Of course, we’re all aware that this success puts us in the teeny tiny cohort of startups who raise without a traditional-looking founding team. So what’s the common theme in my advice to non-traditional founders at the early stage? Push back. It’s easy to get intimidated by investors. They’re smart, aggressive, and ask really hard questions. It can be hard to remember that YOU are the expert on your market. They are generalists. Even if they have strong opinions on your market, it’s OK to tell them when you think they’re wrong. In fact, if you have the conviction and confidence (plus evidence to back it up), disagreeing with your prospective investors can even be seen as an advantage. When a VC asks you a question at the pre-seed stage about your path to $100M in ARR, it’s OK to say “dude, we’re a pre-seed company. I know what our path is to get to a million, and we will have a lot to figure out after that.” Now, this only works if you have a track record that can support your confidence. Or if you don’t know the answer, but you DO know HOW you’re going to figure it out, talk about the path from experimentation to scalability. It’s better than making up a bunch of stuff that you’ll probably throw out eventually, and VCs will respect your focus and defense of your precious little time. Plus, they can usually tell if your confidence is lacking in your answer, anyway. This investor market is a tricky one, but never forget that they (investors) need you (founders) just as much as you need them. And hey, if you’re an up and coming female or underrepresented founder, and you need some help (or just a pep talk) I’d love to help. Happy Tech Week everyone!!
Startup COO Club
5mo
This is absolutely inspiring! 🙌 Teaching founders to confidently push back and assert their expertise is such a game changer. What has been the most rewarding moment for you while mentoring these incredible founders? 🌟
Mayuresh Tare
6mo
What a fantastic and empowering message! Another key insight for underrepresented founders is the importance of building a strong narrative around your unique value proposition. Investors are often looking for compelling stories that differentiate you from the competition.
Reggie Townsend
7mo
Is there an “Ask Liz” column in your future? Great advice!
Brilliant you are!
Joe Toscano
7mo
Chianti Huang, MBA, Ph.D. Candidate say hi to Liz for me if you see her!
CEO at Destined AI // Techstars '23
7moWish I could have been there to hear your tips