Sramana Mitra: When you are writing a $25,000 check for these companies, is that a convertible note or an equity investment? What terms do you apply?
Elizabeth Yin: If we are the first ones to the table, we will do that on a safe. If we are not the first ones on the table and there is already a round in place, we will look at the terms at hand. Sometimes this would be an equity round, equity note, or the safe.
>>>Sramana Mitra: You are saying that you focus on customer acquisition more than technology. You are worried about how quickly a company can get into revenue and what its customer acquisition strategy is.
Can you elaborate on that? What are some nuggets that you are learning from the market of effective customer acquisition strategy?
>>>Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Elizabeth Yin of Hustle Fund was recorded in October 2020.
Elizabeth Yin is General Partner at Hustle Fund, a pre-seed investment firm.
>>>In case you missed it, you can listen to the recording here:
Sramana Mitra: For the entrepreneurs who are listening, you cannot fit a square peg in a round hole. Just like when you were looking for the product-market fit, you are going to have to find an investor entrepreneur fit.
An investor who is looking for one type of exit is not going to invest in the other style. You have to bang against the wall if you are going after investors who are not interested in your style of investment opportunity. Keep that in mind.
>>>During this week’s roundtable, we had as our guest Rajeev Madhavan, Founder and General Partner at Clear Ventures, a firm focused on seed-stage deep tech investing.
Live MOMO
As for our entrepreneur pitches, up first we had Filip Todd pitching Live MOMO, a travel concept that leverages the remote work trend. Within 1Mby1M, we have an experienced entrepreneur pursuing my idea Startup Ideas for the Post Covid World: Facilitating Travel Experiences. Filip may benefit from connecting with this effort.
If you have been bootstrapping and think you are ready for investors, you need to learn how investors think. First, please study our free Bootstrapping course and the Investor Introductions page. Then start looking for entrepreneur – investor fit. Today I introduce you to Naren Gupta.
Naren Gupta is Co-founder of Nexus Venture Partners, a firm with an excellent track record of investing in the Silicon Valley – India corridor, but with a global market point of view. He is a veteran investor who is also strikingly polite and humble while sharing his insights, nuggets, and interesting wisdom. You can listen to a podcast of our conversation here or watch the roundtable video below:
Sramana Mitra: Is the fund strategy chasing unicorns? Are all your companies looking to become unicorns?
Mark Achler: No, I’m from Chicago. We are from the Midwest. I like to roll my sleeves and build real companies solving real problems. If they turn into a unicorn, then that’s great. The odds of that happening is slim. We are not building our portfolio predicated upon the expectation that every company turns into a unicorn.
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