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by capocannoniere 2307 days ago
This is exceptionally well-written. And it looks like YC's design has stepped up quite a notch too :)

Quick question: how to reconcile these two almost-conflicting views:

1) Raising money is the CEO’s job. If you are the CEO, you should plan for it to be your sole, full-time focus.[...] Do what you can to avoid distracting others with fundraising. Co-founders or other executives are typically only brought in to answer specific questions (e.g. CTOs handle technical diligence), and usually only at the full partnership stage.

Even in the rare case of co-CEOs, it’s best to have a single point of contact. Investors want to see a clear decision-making process, which generally requires a final decision-maker. (https://www.ycombinator.com/resources/prepare-your-company)

2) Signing on with a Series A lead is the beginning of a 10 year relationship. If all goes well, that’s how long your board member will have a say in your company. As such, optimize for your board member, not vanity metrics, like valuation. (https://www.ycombinator.com/resources/how-to-choose-an-inves...)

Given point 2), shouldn't non-CEO founders also be involved in at least some meetings with investors to weigh in on who they want to have as board members?

3 comments

I don't think these are in contention. It's the CEOs job to focus on fundraising, it's other founders (and key hires) job to focus on doing the thing they are raising money for.

But that doesn't mean it's the CEOs decision alone when it comes to choosing - there is a lot of legwork to be done before you get there though. I'd absolutely expect other founders to be in later meetings, and a sounding board before then.

Good question - the non-CEO founders should have a chance to meet the VC, but that usually happens as a final step to confirm that there's no terrible interactions.

For what it's worth, I haven't personally seen this dynamic derail a deal.

You are right. Design is now a first class citizen thanks to Zain Ali joining YC as designer in December. Lots of more things in the works https://twitter.com/zainali?lang=en