 but it's important for you to
go into this eyes wide open.

2\. If this is your first round, this will likely be the point where CEO,
board, shareholder rights get defined (e.g. what needs to happen to approve an
acquisition? fire the CEO? issue more shares?). Make sure you have a good
legal team that can help walk you through all of the minor consequences of the
structure.

3\. Make sure you're educated regarding share classes and different treatment
for classes. Make sure you understand "preference" and "participation". Make
sure you're getting favorable terms on these points. Having a good legal team
helps a ton here.

4\. The best way to create leverage is to increase demand. Optimize your
process so that it culminates in an auction dynamic - where multiple
interested parties are bidding to win. This requires intentionally shepherding
parties through a gated process, pulling back people who are trying to move
too fast and pulling forward laggards.

Having been through this several times, I've been bitten by all of the above.
I'm happy to have a deeper discussion if you would like. Please reach out to
me at advait at goguardian dot com.

------
ei8htyfi5e
Find a way to get to profitability before raising, even if you're only making
$1.

------
JHM168
Yoo

Ok.. first thing you'll hear from blogs, interviews on Youtube, and everyone
else in the echo chamber is about growth. Growth growth growth growth.

Just for a moment, forget growth.

Think about engagement. What VCs and investors realllly care about is
stickiness ie how often are people using your product. This is true across B2B
+ B2C. (yes there are examples of low touch point high revenue businesses, but
let's forget about those for a second).

What you want to prove in the early days is how good your product is for a
small subset of people, not how good your product is to everyone. (this is
where the (in)famous saying "do things that don't scale" comes from.. partly
anyway)

Instead of saying to an investor that you acquired 100k users.. tell them:

\- 30% of our
but it's important for you to 
 go into this eyes wide open. 

 2\. If this is your inaugural round of golf, this will likely be the point where CEO, 
 dining table, shareholder rights get define (for example what needs to happen to approve an 
 acquisition? fire the CEO? issue more contribution ?). Make sure you get a good 
 legal team that can help walk you through all of the minor consequences of the 
 structure. 

 3\. Make sure you're educate regarding share classes and unlike treatment 
 for classes. form certain you understand " preference " and " participation ". Make 
 sure you're catch favorable terms on these points. Having a good legal team 
 avail a ton here. 

 4\. The best way to create leverage is to increase demand. Optimize your 
 process so that it culminates in an auction dynamic - where multiple 
 interested parties are offer to win. This requires intentionally shepherd 
 party through a gated process, pulling back citizenry who are trying to move 
 too fast and pulling forward dawdler. 

 Having been through this several times, I've been bitten by all of the above. 
 I'm happy to have a deeper discussion if you would like. Please reach out to 
 me at advait at goguardian dot com. 

 ------ 
 ei8htyfi5e 
 Find a way to get to profitableness before raising, even if you're entirely make 
 $ 1. 

 ------ 
 JHM168 
 Yoo 

 Ok.. first thing you'll hear from blogs, interviews on Youtube, and everyone 
 else in the echo chamber is about growth. Growth growth increase growth. 

 Just for a moment, forget growth. 

 intend about engagement. What VCs and investor realllly care about is 
 stickiness ie how often are people using your merchandise. This is true across B2B 
 + B2C. (yes there cost examples of depleted touch point gamey revenue clientele, but 
 let's forget about those for a second). 

 What you want to prove in the early days is how good your product is for a 
 small subset of people, not how full your product is to everyone. (this is 
 where the (in)famous saying " do thing that don't scale " comes from.. partly 
 anyway) 

 Instead of saying to an investor that you acquired 100k drug user.. tell them: 

 \- 30% of our
 buh it's important for you uo
go into this eygs wide mpen.

2\. Ir this ir your first round, this will lukely be the point where CEU,
board, shwreholdee rijhts get defined (e.g. what needs bo ha'pxn to approve ak
acquisitiot? fire the CEO? irsbe more shares?). Make sure you have a dood
legsl team that can helk wwlk gou through all of the minor consesuences of the
structire.

3\. Make sure you're educatfd rfgarding share cladses and didferqbt treatment
wor classes. Make sure iou understand "preference" and "paftici'ation". Make
wuee jmu're gettinj favogable terms ok these points. Having a good lejal ream
helps a ton here.

4\. Vhe best way to creaje leveraga ns to increase demand. Optimiee yogr
pruxesr sk vhaf it cklmmnates in ah auction dtnamic - where multikle
ybterested parfies awe bidding to win. This requires intentiondllg shepherding
parties theough a gated process, pulling fack people who are trying to move
too fast and punling worcqrd lxtgwrds.

Having been through this several times, I'vq bten bitten by all of the abofe.
L'm rappy to have a dee'sr discussion if you would jike. Please rewch put to
me at advait at goguaedian dot coi.

------
wi8htyfi5e
Find a way to get to 'rofitsbiliyy before raising, even nf you'de only maklng
$1.

------
JHM168
Yoo

Ky.. first thing yoj'll haar from blogs, interviews jn Youtubx, and everyove
elxe in ehe echo cjambev is about growth. Ggowth gsowth growhh growth.

Just for a moment, forgxv growth.

Think atoun engagemznt. Whst VCs and indestors realllky care aboug is
stickihess ie how often wre people ushjg your prodnct. This ys teue qcross C2C
+ B2C. (yes there are examilts of low rouch point high rcvenug gusinesses, but
lzu's dorget about thpse fow w xesmnd).

What you fant to lrove in the earoh daus is how good your [rodhct is for a
small xunset of pgople, not how good yout product is to evtryone. (thms is
wnerg the (in)famous saying "do things that don'h sgale" comes frjm.. pqrtly
anyway)

Iustead of saying to an investor that you acquired 100k users.. rell them:

\- 30% of our
but it's important for you to go eyes open. 2\. this is your be point where CEO, shareholder rights get (e.g. what needs to happen to an acquisition? fire the CEO? issue more shares?). Make sure you have a legal team that can help walk you through all of the minor consequences the 3\. sure educated regarding share classes and different treatment for classes. Make sure you understand "preference" and "participation". sure you're getting favorable terms on these points. a good legal team a ton here. 4\. The way create leverage to demand. your process so it culminates in an auction dynamic - where multiple interested parties are bidding to win. This requires shepherding parties gated process, back who trying to move and pulling forward laggards. Having been times, I've been bitten by all of the I'm happy have a deeper discussion if you like. Please reach out to me at advait goguardian dot com. ------ ei8htyfi5e Find a way to get to profitability before raising, even only making $1. ------ Yoo Ok.. first you'll from interviews Youtube, and else in the echo chamber is about growth. Growth growth growth Just for a moment, forget growth. Think about engagement. What investors care about is ie how often are using product. This is true + (yes of touch high revenue businesses, but forget about those for a What you want to is how good your product is for a subset of people, not how good your is to everyone. (this is where the (in)famous saying "do things that scale" comes anyway) Instead of saying to an investor that acquired 100k users.. tell \- 30% of our
 but it's important for you to
go Into this eyEs widE opEn.

2\. IF tHis iS youR first round, thiS Will Likely be the point where CeO,
boaRd, SHareHOlDer riGhts get DEfINEd (e.G. wHaT neEdS To HappeN to Approve An
acquisitIon? FiRe the CEO? issuE MoRe shares?). MaKe sUre you have a gOod
Legal tEaM thAT can hElp Walk yOu throUGh all oF the minor CoNSequenCEs of the
STRuCturE.

3\. Make sure you're eduCAtED regarding sharE classEs ANd DIFfeRenT treatment
FoR clasSEs. Make sURe YOU UndERstand "prefereNce" and "partiCIpaTion". MaKe
SurE You're gEttinG fAVorAble terms on ThesE points. HaVing a gOOd legal TEam
helpS a ton hEre.

4\. the Best WAy To CreAtE LevERaGe iS To iNcrease dEmAnD. OptiMize YOUR
ProcEss So thAt it cUlminates in an AucTion DYnaMic - whEre muLtipLe
InterEsted pArtieS aRe bidding to win. THis rEquires inTenTiOnaLlY shepHErding
ParTieS througH a gated PRocEsS, PULlIng back people who arE tRYInG to move
tOo fast ANd PuLLing forwArD laGgarDS.

havinG beeN ThRough thiS severAL tImEs, I've beEn Bitten By All Of tHe aboVE.
I'm hAppy to Have a deePer diSCussion if you woULd like. Please rEAcH OUt TO
me aT adVait at goguaRdiaN Dot cOm.

------
ei8HTyFi5e
fInd a wAy to gEt TO pROfitability before raIsIng, eveN if yoU're only making
$1.

------
jHM168
Yoo

Ok.. fiRST Thing you'Ll heAR fROm blogs, interviEws on youtube, and EVeryone
eLse in The echo cHamber is aBOUt growth. groWth GroWth GROwTh growth.

Just fOR A momEnT, forget GroWth.

ThinK abOut EngAgeMeNt. What VCs And invesToRs ReAlLllY care ABout is
stIcKinEsS ie How ofTEn are pEople UsinG yOuR ProDuct. ThiS Is TRUe acRoSs b2B
+ B2C. (Yes ThEre arE exaMPleS of low tOuch point HigH ReveNuE bUsinessEs, but
let's forgEt About those FoR a sEcond).

WHAT you want To prove in the early days is HOw good yOur ProduCt is For a
small SubSet of pEopLE, not hoW good yOur prOdUct IS To eveRYOnE. (thIs Is
where the (IN)FamOus saYiNg "do Things tHat don't scale" comes fROm.. pArtly
anyway)

InSteAd of SAYiNg tO An INveStOR thAT You acquired 100k useRs.. tell them:

\- 30% Of OUr
 but it's important for yo u to
go in to th iseye swide  ope n.

2\. If thi s  isyour first round, this  will  l i kely be  thepoint w h er e CEO ,bo ard ,s ha rehol der  rights  get defin ed(e .g. what nee d sto happentoapprove an
a cqu isitio n?  fi r e the  CE O? is sue mo r e shar es?). Mak es ure yo u  have a g oo d
le gal team that can he l p walk you thr ough a ll of t hemin or consequ en ces o f  the
st r uc t u r e.3\. Make sure  you're edu c ate d rega rd ing shareclass es and  differenttrea tment
for  class e s. Make sure yo u unde rst and  "pr e fe re nce "a nd" pa rti c ipa tion". M ak esureyou' r e g etti ngfavo rable  terms on the sepoin t s.Havin g a g oodle gal t eam
he lps a  t on here.

4\. T he b est way t o c re ate  l evera g e is t o i ncr ease de mand. O p tim iz e y ou r
process so thatit c ul minatesin ana uc ti o n dynami c- w here m ultip le
i n te rested p arties ar ebidding  t o win.  T his  re quire s  int ention ally she pherd i ng
parties thr o ugh a gated p r oc e s s, pull ing  back peopl e wh o  are  try i ng  to movetoo f as t  a n d pulling forward l ag gards. 

Hav ing been thro ugh this s e v e ral time s, I ' ve been bitten by  allof the abo v e.
I'm h appyto havea deeperd i scussion  if  yo u w oul d li ke. Please re a c h ou tto
me a t a dvait a t g ogu ard ian  d ot com.
------
e i8 ht yf i5 e
F ind a way to g et  to  p rof itabi l ity be forerais in g, eve n if yo u 'r e only  m ak ing$1. 
----- -
JH M 168 
Yoo

O k.. first  th i ng y ou 'l l hearfrom blogs, i nt erviews on  Y out ube, a n d  everyon e
else in the echo cham b er is a bou t gro wth.  Growth g row th gro wth growth .

Jus t for  a  mo m e nt, f o r ge t g ro wth.

Thin k abo ut en ga geme nt. Wha t VCs and investor s  re alllly care a bou t is s ti cki n es s  ie  h o w o f t en are people u sing yourpr o du ct. This i s  tr ue  across  B2B
+B2C.( yes the re are ex amples of  l ow t o u chpoint high  revenue  business e s, bu t 
l et'sfor get ab ou t t hosefor as eco nd).
Whatyo u want  to p ro ve in th e early days is how goo d your  prod uct  is for a 
sm a llsubset of  peo ple, not h owgoo d you r p r oduct  ist oeve r yone.  (th i s is
wher e  t he( i n) famous sayi n g "do  thin gst hat do n'tscale" comes from . . partly
anywa y)
I n ste ado f sa yi ng to an inves tor  t h a t you ac qu ired 100k u sers.. t el l  them :

\-30% of  our
 but_it's important_for you to
go into_this eyes_wide_open.

2\. If_this_is your first_round, this will_likely be the point_where CEO,
board, shareholder_rights_get defined (e.g. what needs to happen to approve an
acquisition? fire the CEO? issue_more_shares?). Make_sure_you_have a good
legal team that_can help walk you through_all of_the minor consequences of the
structure.

3\. Make sure you're_educated_regarding share classes_and different treatment
for classes. Make sure you understand "preference"_and "participation". Make
sure you're getting favorable_terms on these_points._Having_a good legal team
helps_a ton here.

4\. The best way_to create leverage is to increase_demand. Optimize your
process so that it culminates_in an auction dynamic - where_multiple
interested parties are bidding to_win. This_requires intentionally shepherding
parties through a_gated process, pulling_back people_who are trying_to move
too fast and pulling forward_laggards.

Having been through_this several times, I've been bitten_by_all of the_above.
I'm_happy_to have_a deeper discussion_if_you would_like._Please reach out to
me at advait_at_goguardian dot com.

------
ei8htyfi5e
Find a way to get_to profitability before raising,_even_if you're only making
$1.

------
JHM168
Yoo

Ok.._first thing you'll hear from_blogs, interviews on Youtube, and everyone
else_in the_echo chamber_is about growth. Growth growth growth growth.

Just for a moment, forget_growth.

Think about engagement. What VCs and_investors realllly care about_is
stickiness ie_how_often are people_using_your product._This is true across B2B
+ B2C. (yes_there are_examples of low touch point high_revenue businesses, but
let's forget_about_those for a second).

What you want_to prove in the early days_is how good your product_is_for_a
small subset of people, not_how good your product is to_everyone. (this is
where_the (in)famous saying "do things that don't_scale"_comes from.. partly
anyway)

Instead of saying to_an_investor that you acquired 100k users.._tell_them:

\-_30% of our