Texts with Founders

Texts with Founders is a Substack focused on providing startup founders with tactical advice on various aspects of building and growing a startup, from fundraising and investor relations to company culture and handling personal challenges. It emphasizes the practical steps founders can take in early stages, fundraising strategies, maintaining investor relations, and building a team culture.

Startup Fundraising Investor Relations Startup Culture and Values Founder Well-being Team Building and Hiring Startup Strategy and Execution Customer Focus in Startups

The hottest Substack posts of Texts with Founders

And their main takeaways

Preconditions for Starting

7 implied HN points • 13 Feb 24
💼 Business Startup Funding Customers Investors
  1. Having a good co-founder can make starting a company less lonely and more successful.
  2. Relying on funding or accelerators as preconditions to starting may show a lack of commitment to building a successful startup.
  3. Starting with customers before seeking investors can lead to faster validation, more successful fundraising, and show commitment to the company's growth.

Texts with Founders: “Should I take small checks from large funds?”

4 implied HN points • 12 Dec 23
  1. Consider the benefits and risks of accepting small checks from large funds.
  2. Small token investments can give investors early insight and option to lead future funding rounds.
  3. Refrain from publicizing when a multistage firm invests with a small check to avoid signaling risk.

Texts with Founders: Support 🕊️

5 implied HN points • 10 Oct 23
  1. Engage with international tragedies to show support.
  2. Handle grief in a way that works best for you.
  3. Take care of yourself so you can support others effectively.

Texts with Founders: 3 Core Elements of Fundraising Prep

4 implied HN points • 31 Oct 23
  1. Focus on preparing sufficiently for fundraising to achieve a positive outcome.
  2. The success of a fundraise is measured by whether you raise the intended amount and the time it takes to do so.
  3. Prepare external materials like a pitch deck and blurb before investor meetings to improve your chance of closing the round successfully.
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Texts with Founders: Christmas List

2 implied HN points • 26 Dec 23
  1. Customer support is a key competitive advantage.
  2. You have more control over situations than you think.
  3. Specialists can excel as founders if resourceful and resilient.

Texts with Founders: Intros and Forwardable Emails

4 implied HN points • 26 Sep 23
  1. Intros are important for startups and can change the trajectory of a business
  2. Make it easy for connectors to facilitate introductions with forwardable emails
  3. Avoid ghostwriting for connectors in forwardable emails and provide concise, relevant information

Texts with Founders: When and How to Engage Follow-on Investors

2 implied HN points • 05 Dec 23
  1. Timing matters when engaging follow-on investors.
  2. Disclose the lead or wait till you've signed a term sheet to engage meaningfully with follow-on investors.
  3. Avoid sharing funding details before signing a term sheet to prevent potential issues.

Texts with Founders: Check Size Doesn't Matter

5 implied HN points • 15 Aug 23
  1. Minimum check size in fundraising isn't crucial; prioritize expertise, network, and legibility of investors.
  2. Focusing on angels and small funds can help build momentum in early fundraising stages.
  3. New fundraising methods like SAFEs and RUVs make bringing on smaller investors more cost-effective and simple.

Texts with Founders: Weekly Investor Updates

4 implied HN points • 22 Aug 23
  1. Weekly updates for startups are clarifying and focusing
  2. Writing weekly updates can help with fundraising
  3. Continuing to send weekly updates after fundraising can maintain momentum

Texts with Founders: 30 additional ideas to wrap up ODF19

2 implied HN points • 14 Nov 23
  1. Getting your ideas out there can lead to more collaboration and opportunities.
  2. De-risking your business before fundraising can attract better investment.
  3. Focus on understanding and addressing the specific risks your startup faces.

Texts with Founders: Company Values

2 implied HN points • 17 Oct 23
  1. Company values exist from the start, even if not written down.
  2. Attract and repel with your culture to build an incredible team.
  3. Let the free market decide by openly sharing your culture and attracting like-minded people.

App Launch: Valuation Calculator

2 implied HN points • 19 Sep 23
  1. Valuations in fundraising are based on factors like money needed, dilution, and market interest
  2. The Valuation Calculator app offers advice through videos and written content on determining raise amount, round dilution, valuation range, and scenarios
  3. Feedback on the app is welcomed for improvement

Texts with Founders: How “Good Guy” Phrases Torpedo a Pitch

2 implied HN points • 05 Sep 23
  1. Avoid using fluffy phrases like 'game-changing product' in startup pitches.
  2. Back up statements with data or demonstrations to make pitches more convincing.
  3. Let customers and investors draw their own conclusions about the value and impact of your product.

Texts with Founders: MFNs

2 HN points • 29 Aug 23
  1. MFNs can be great for founders as they allow for deferring immediate valuation and increasing company value before determining a final valuation.
  2. Investors marketing MFNs as 'free money' is not accurate, as MFNs still involve determining future valuation and dilution.
  3. Understanding an investor's motives for offering an MFN and doing scenario planning around valuations post-MFN investment are crucial for using MFNs effectively.

Texts with Founders: Avoid Hiring Too Early

2 implied HN points • 07 Aug 23
  1. Avoid the pressure to hire too early, especially after raising funds.
  2. Headcount size is not always a sign of progress or success; focus on what truly matters like customers.
  3. Resist pressure to hire from investors and stay nimble by hiring when it makes sense for your business.

Texts with Founders: The Student (Dis)Advantage

1 implied HN point • 24 Oct 23
  1. Student founders often feel a credibility gap due to lack of experience.
  2. Being a student founder can actually be an advantage in connecting with people.
  3. Embrace your status as a student or recent graduate in your outreach.

Texts with Founders: Conditional Commitments

2 implied HN points • 10 Jul 23
  1. Investors may give conditional commitments, which are not solid commitments.
  2. Conditional commitments allow investors to back out with various reasons.
  3. As a founder, focus on building momentum in your business and fundraise while counting out investors with conditional commitments.

Texts with Founders: Tranche Fundraising

1 HN point • 12 Sep 23
  1. Founders can use a tranche strategy to secure early support and introductions while building momentum for their fundraising round
  2. When communicating a tranche to angel investors, it's important to frame it as an opportunity for early commitment at a lower valuation
  3. Avoid pitfalls in tranche fundraising by being transparent, avoiding artificial scarcity, setting reasonable valuation caps, and understanding market norms

Texts with Founders: Customers understand before investors do

1 implied HN point • 01 Aug 23
  1. Customers understand a product before investors do
  2. Customers can become valuable investors by providing validation and feedback
  3. Focusing on customers before fundraising helps with objection-handling and can lead to better outcomes

Texts with Founders: The Benefits and Downsides of Responsiveness

1 implied HN point • 24 Jul 23
  1. Responsiveness can have a substantial impact on fundraising and sales.
  2. It's important to separate situations that benefit from a quick response and those that do not.
  3. Careful consideration and thoughtfulness are crucial in certain complex or sensitive situations.

Texts with Founders: Raise the round behind you

1 implied HN point • 17 Jul 23
  1. You have control over your fundraising timeline and strategy.
  2. Consider raising the round that's behind you instead of the next one.
  3. Higher valuations create hurdles for future rounds.

Texts with Founders: Avoiding Gossip

1 HN point • 03 Jul 23
  1. When someone pressures you to gossip, you can politely decline by stating you don't discuss people's private matters.
  2. By declining gossip, you show yourself as a trustworthy person.
  3. Consider the risks of sharing sensitive information with someone who pushes you to gossip.

Texts with Founders: Handling inbound from investors

1 HN point • 26 Jun 23
  1. Avoid talking to investors when you're not actively raising funds to prevent distractions and lack of momentum.
  2. First impressions matter with investors, so be cautious about meeting them before you are truly ready.
  3. Focus on building relationships with investors during the fundraising process by keeping them updated and running a structured meeting process.

Texts with Founders: Reference Checking Investors

0 implied HN points • 28 Nov 23
  1. When raising for your startup, be thoughtful about who your lead investor is
  2. Before accepting a term sheet, talk to founders who have worked with the potential investor
  3. Seek feedback from founders with different experiences with the investor for a comprehensive understanding

Texts with Founders: 20 Ideas Halfway Through ODF19

0 implied HN points • 07 Nov 23
  1. Are you ready to commit ten years to your startup?
  2. Focus on achieving milestones, not just runway, when raising funds.
  3. Clarify your big vision and articulate clear first steps for success.

Texts with Founders: Participating funds asking for lead investor rights

0 implied HN points • 02 Jan 24
  1. After securing a lead investor, other potential investors may change their commitments.
  2. It's not uncommon for smaller funds to request lead investor terms, like pro rata.
  3. When dealing with requests for additional rights, consider the importance of the investor's money and the transparency of their requests.

Texts with Founders: Fundraising Prep (Part 2)

0 implied HN points • 21 Nov 23
  1. There are three core elements to prepare for your fundraise: External Materials, Internal Materials/CRM, and Tactical Fundraising Knowledge
  2. Funding viability is crucial for making your company investable, having traction helps attract investors
  3. Building an Investor Pipeline is essential for a successful fundraise, warm introductions are valuable in the tech industry

Texts with Founders: Let the waitlist wait.

0 implied HN points • 19 Dec 23
  1. Focus on serving your best customers first, don't feel pressured to serve everyone on your waitlist right away.
  2. Target the 'bullseye customers' initially, those who have a high willingness to pay and believe your product solves their problems.
  3. It's important to expand your customer scope gradually, starting with a focused group before broadening to a larger audience over time.

VCs that Ghost

0 implied HN points • 03 Oct 23
  1. Investors can be fast to reject or slow to decide, sometimes remaining silent.
  2. Expect that not all investors will act with conviction, some may delay or avoid decisions.
  3. Address ghosting by understanding their process, showing business momentum, and securing early commitments.