We’ve listened to mentors and entrepreneurs share the most misguided and cringeworthy personas they’ve faced in the startup world, and how they've reacted to them. This installment of our memes series focuses on VCs and Entrepreneurs.
Here are some common characters to avoid, whether you be an entrepreneur or a VC:
The Dreamer Entrepreneur:
Founders will need to remember that investors place their bets first and foremost on a team (Read: How to raise $18M in the Middle East? 5 tips from MarkaVIP founder Ahmed Alkhatib). If you don’t have enough faith in your idea to go with it fullthrottle, why should an investor?
The “let us do this for you” VC types:
When it comes to looking for VCs, identifying a strategic investor that would unlock both mentorship and network was one of the main takeaways of our Mix N’ Mentor events, but giving over too much control over your business can be its main ticket to death row.
Winning awards and first place in competitions are good for recognition (and make for lovely decoration and photo ops), but don’t compare it with leading a startup from idea to functional service/product.
The Bargain VC:
At a fundraising roundtable during our latest Mix N’ Mentor, mentors agreed that regional investors tend to be equity-hungry. Valuations are a tough exercise, but they will allow you to avoid giving away too much equity for peanuts.
The Psychic Entrepreneur:
Because of the fast-paced, adaptive nature of the industry, valuations based on long term projections don’t hold. Here’s what investors would tell you to prepare, from our insights from Mix N’ Mentor Amman.
Want to know what turns investors away? Read this.