VC trick questions, building 3-case models, B2B sales coaching • TechCrunch
I have nothing against the investor class, but sitting in a room with multiple VCs while trying to sell them my billion dollar idea seems very stressful.
When an investor inevitably asks founders about their valuation expectations, this is a prime trick question. If the answer is too high, it’s a red flag, while a low number will undervalue the company.
“We’re leaving the market price this round” is a confident answer, but it’s only appropriate if you’ve actually gathered substantial data points from other investors – and can fire back with a few questions of your own, says Evan Fisher, Founder. of the Unicorn Capital.
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“If that’s all you say, you’re in trouble because that can also be interpreted as ‘we have no idea’ or ‘we’ll take what we’re given,’” Fisher said.
Instead of going in the cold, he advises founders to pre-pitch investors for their next round and use the takeaways from those conversations to shape current valuations.
In the article, Fisher includes sample questions “you’ll want to ask every VC you talk to” and other tips that will help you “when they ask the evaluation question.”
A pitch is a business meeting, but on some level it’s also a game where investors hold all the cards and always win. To level the playing field, founders must think of a step forward.
Thanks for reading,
Editorial Manager, TechCrunch+
Twitter Space: Is Tech Media Creating “Charismatic” Founders?
Larger-than-life entrepreneurs aren’t new, but technology has taken this to the next level, often with the help of the news media.
Tuesday, December 13 at 1:00 p.m. PT, Builders Venture Capitalist Andrew Chen will join me on a Twitter space to discuss the role technology reporting plays in shaping ecosystems, narratives and expectations.
It should be a lively conversation, so feel free to add your comments.
The Climate Founders Guide to the Inflation Reduction Act
The Cut Inflation Act goes far beyond cutting costs for American consumers – Congress has earmarked $369 billion to fight climate change, creating new opportunities and incentives for thousands of people. entrepreneurs.
In a detailed article that examines the impact of the IRA on green fintech, electrification, carbon capture and other areas, investor David Rusenko and Floodgate Fund Director Leeor Mushin share their “ understanding of the regulatory ramifications of this monumental bill”.
To prepare for a downturn, build a three-case model
Startups that develop case models are better equipped to deal with potential setbacks. Visualizing exactly how potential market changes may impact your business is a great way to prepare for the unexpected.
A three-case model attempts to predict the best, worst and baseline scenarios, writes Matt Barbieri, managing partner at accounting firm Wiss & Co.
“Typically, the base case is between the extremes. For example, in financial modeling, you might say that Peloton experienced both its “best case” and “low case” scenarios in one year.
In these uncertain times, B2B sales teams need to put value first
At a time when companies are looking for places to cut SaaS spend, sales teams need to focus on ROI and value, says Ketan Karkhanis, EVP and GM of Sales Cloud at Salesforce.
In an article for TC+, he shares tactics successful B2B sales teams use to coach prospects through the sales funnel while building relationships through one-to-one interactions.
“Many customers feel lost,” he writes. “They are confused by economic volatility and overwhelmed by a deluge of information.”
“Acting as a coach who brings personalized and relevant information to the right stakeholders without pushing to a quick conclusion is key to building trust.”
Pitch Deck Teardown: Rootine’s $10 Million Series A Deck
In 2018, TechCrunch reported that health and wellness startup Rootine was preparing to enter the US market after racking up “1,500 paying customers in Europe.”
Four months ago, the company, which sells a $70/month subscription for multivitamins, announced that it had raised a Series A round of $10 million.
If you want to read the 29 unresponsive slides, click through to our latest pitch deck teardown.
Dear Sophie: What is the impact of tech layoffs on PERM and the green card process?
I manage human resources and immigration in our technology company. We filed a PERM for one of our team members about five months ago for his EB-2 green card, and we are awaiting certification from the Department of Labor. We are preparing to launch the PERM for another employee.
Will layoffs in the tech industry affect the PERM process for EB-2 and EB-3 green cards? What will happen to my team members’ green cards if our company has to make layoffs?
— Reflection on People Ops
To attract investors, use growth as a differentiator
Despite the pessimism, investors are still encountering founders as they look for places to park their money. Suave storytelling skills are good, but they’re not enough: once you’re in the room where it’s happening, making the most of everyone’s time is key.
To make investor buy-in more likely, Jon Attwell, head of Seedstars Growth Track, advises teams to create metric-driven customer journey maps that detail “all the mini-processes that customers go through and the pathways that they follow”. ”
Growth projections are great, but showing investors concrete plans for onboarding and retention, tackling churn, and addressing other growth factors will help demonstrate how well you understand your market.
“For investors, it’s a rare treat to see an obsession with granular metrics of a customer journey,” Attwell writes.
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