|
From the OP, by the time my solo, sole founder startup has $10,000+ a month in revenue, my startup will have plenty of cash for very rapid growth; cash for growth will not be a tight constraint; and no VC need call! The OP is significantly about applying to YC: From what I've heard, YC doesn't much like sole, solo founder startups! Why should no VC need call? For my startup, a PC server from $1500 in parts kept on average half busy 24 x 7 should generate well over $200,000 a month in revenue. Thus there would be plenty of cash for more PCs at $1500 each. Even $10,000 a month in revenue would yield plenty of cash for more servers. SUSA Ventures claims to want "technical founders". Alas, it doesn't look like the SUSA partners are very technical! "Warm introductions"? SUSA and many want "warm introductions": But VCs and I do not have associates in common. So, I can't get a "warm introduction" to a VC, and no VC can get such an introduction to me. E.g., I might be able to get a "warm introduction" from one of my Ph.D. dissertation advisers, at one time President of one of the world's best known research universities especially famous for their STEM field graduate programs, including computer science and AI. However I doubt that that person knows any information technology VCs. E.g., recently Tom Magnanti, Dean of Science at MIT, gave a technical lecture on the foundation of the Internet at a lecture series named for Professor X. Well, Professor X was the Chair of my Ph.D. orals committee; maybe I could get a warm introduction from him; but likely he knows no information technology VCs. Net, my background is technical, but VCs are not qualified to be my technical colleagues or associates -- VCs don't measure up. For the people I know, the best form of an introduction is a good peer-reviewed paper of original research in a STEM field, preferably applied math complete with significant theorems and proofs. It appears that there are few or no such information technology VCs anywhere in the US and similarly few who could accurately evaluate such a paper. SUSA Ventures claims: "We seek out highly defensible companies that leverage data, economies of scale, or network effects to build value and achieve longevity." "Seek out"? My experience is that SUSA ignores such things even when they land in their e-mail inbox. IMHO, for the OP again, all the advice on pitching information technology VCs is noise and filler and useless except just one word, "traction", preferably in the form of after-tax earnings significantly high and growing rapidly. But for a sole, solo founder startup, by the time the business has traction enough for a VC to write a check, the founder likely will no longer accept such a check. |
1) $10k/mo is not even close to enough for most US companies that want to grow quickly. If it were enough, then way fewer founders would want to fundraise.
2) I'm a partner at Susa and I'm technical. And even if I weren't, being technical has little to do with being a good partner to technical founders. Most basketball coaches can't dunk, but they are still good coaches. Furthermore, if a founder is technical, then a non-technical VC/advisor/mentor/friend that can help in other areas can be more useful than someone who is technical. Most technical founders I work with have no problem with building tech, but many struggle with the business side.
3) Our website says we prefer warm intros. We don't require them, we just prefer them. I reply to cold emails frequently and often meet people after they cold email me. But the cold emails should be good/well-targeted, and unfortunately most are not.
4) Traction is not the only thing that matters. For example, I just did a quick calculation, and over half of our investments in the last 12 months had $0 revenue when we invested. Many of those investments hadn't even launched yet.