October 7, 2014
When it comes to the topic of getting funding for your startup, the challenges are endless. Not only is raising a round of funding a long process, but developing a relationship with investors that is beneficial to the company’s growth is also something you have to think about. In a conversation about the intricacies of the investor-investee relationship, Charles Hudson (partner at SoftTech VC) and Bharat Vasan (COO of August) told the audience at Tech Cocktail Celebrate Conference that the focus should be on the company’s growth.
“You are going to have different investors as you grow. To get the most out of your investors, look at your team and focus on their needs and how investors can help,” explained Vasan.
Basically, the investors’ role should not be only to provide money but also guidance. It is up to the entrepreneur to keep the relationship focused.
“As a founder, you are in charge of the details – your company’s day-to-day growth – while your board comes in with ideas for the long-term plan. You need to manage and keep the communication aligned to your immediate goal,” said Vasan. “Your goal when you’re an early-stage company is to acquire happy customers. If you sell something that they are unhappy with, there will not be a year 2.”
And when it comes to closing a round of funding, sometimes it’s worth relating a sense of urgency to investors.
“You have to realize that sometimes a lack of yes means no,” said Hudson.
On October 6-7, Tech Cocktail Celebrate Conference is gathering hundreds of attendees, industry leaders, and inspiring speakers in downtown Vegas to meet the hottest startups and investors from around the country, learn and collaborate with others turning their communities into startup cities, and enjoy music, parties, and llama spotting. Check out more Tech Cocktail Celebrate Conference coverage here.
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