I am very pleased to be able to talk to Pavel said, in today’s episode How CEO podcast!. Pavel is a co-founder and managing partner at Mindrock capital. Pavel is also a managing partner in GVA Capital. I spoke with him about what founders and CEOs need to know about raising early check.
It should be the founders trying to raise Early check?
I asked Pavel: when should a founder just starting a company began to consider ways to improve the early check, what should they do to get ready?
Pavel believes that an innovation starts as a baby. When a baby is embryo, the parents don’t show it off to friends and family. The same is true of startups.
“There is a certain period of time, you don’t even know if your product will fly—if people really need your products or if some even Is A product. Once you’ve identified is not a product, and once you know that all your binary risk of the performance in a more relevant risk-related expansion, Then You should go to the investors.”
What investors want to see before investing
Pavel told me, although there is a category of investors willing to Fund the idea, in the early stages, the fact is, in most cases, funds will include your friends and family in the beginning.
Institutional investors will want to see for the first time to have a powerful team. The team should have a product, the product should solve a particular problem, especially the customer.
Pavel told me to look at it from this perspective: the ideal situation for investors is when the start of the founders came to an investor with a box and said,”We put $ 100 in the cost box. We open a handle, we get$200 out. Or $ 300.” Now the investors are willing to put money into this box.
First, the investor will be in the $ 100, and nothing happened…and then put a hundred, and nothing happened…but maybe in a year when they put enough money into this box and the coins will start to come out.
Step to show investors, the startup will be successful
Investors never know what determines this box(start)to the actual work. So I asked Pavel,”what are some good signal a founder may be given to investors to show them that their startup will be successful?”
He told me about a few steps founders can take that can help get the attention of investors. Here is Pavel’s the rundown:
1. Friends and family
First, he told me, there are always some investors can approach, without a strong pitch. Again, for example, you can go to your friends and family.
You can also go to the accelerator. Even if you don’t want to participate in an accelerated program, you can still use the application process as a way to get feedback and to understand for yourself to determine if your project can be funded.
Pavel is strongly recommended that Creator is applicable to all possible promoters, and sell all of their family members. “If you are afraid or shy to show your projects or even for your close friends, what is wrong, you should go back to the design of the product.”
The next layer to service providers like lawyers. Most large law firms, at least here, in Silicon Valley, will be given credit for virtually any to start their services. You can get 10,15K, 20K worth of credit lawyer to set up your company, they will want to, once to raise funds, then pay them back.
“If you can’t sell your items, even for a lawyer, you should not start by institutional investors,”Pavel told me. “This is a very good sign of where you are.”
4. Start the program with large companies
Then, you go to Google and get $ 100,000 of value of their credit, or Amazon, or Facebook, or Microsoft. All those big companies have a special program for startups.
5. Recommendations from other founders or investors
Another very important resource for founders other founders of successful startups who have raised funding. “The best deal I will invest, through suggestion,”Pavel said. “The recommendations may come from large companies if you have a good deal with them, if you are having some exciting career development, they will tell us.”
Recommendations can also come from other investors. Get a recommendation from another investor is basically convincing another investor to invest. Get the advice of the founder is much easier. They have been in your shoes, they know how difficult it is. If they like your project, it doesn’t cost them anything to send an email.
Pavel has more advice and recommendations given to the New founder. He gave me his thoughts on valuation, others are doing great work, as investors, and more. You won’t want to miss this episode.