Funded Founder Fridays: E6 Due Diligence Case Study

Um, welcome to Funded Founder Fridays. Um, welcome to Funded Founder Fridays. This is our sixth episode. Today we'll This is our sixth episode. Today we'll This is our sixth episode. Today we'll be talking about do deal flow and due be talking about do deal flow and due be talking about do deal flow and due diligence. Um, here at Funded Founder diligence. Um, here at Funded Founder diligence. Um, here at Funded Founder Fridays, we create the space for Fridays, we create the space for Fridays, we create the space for founders to ask honest questions about founders to ask honest questions about founders to ask honest questions about the startup journey. Every Friday, we're the startup journey. Every Friday, we're the startup journey. Every Friday, we're exploring one theme that impacts every exploring one theme that impacts every exploring one theme that impacts every founder, investor, mentor, and builder founder, investor, mentor, and builder founder, investor, mentor, and builder in an in an innovation ecosystem. in an in an innovation ecosystem. in an in an innovation ecosystem. I'm Rosa Vayos, CEO and co-founder of I'm Rosa Vayos, CEO and co-founder of I'm Rosa Vayos, CEO and co-founder of Creative Inc., where we are creating Creative Inc., where we are creating Creative Inc., where we are creating where we are centered on exploring the where we are centered on exploring the where we are centered on exploring the relationship between creativity and relationship between creativity and relationship between creativity and safety. We know that without safety, our safety. We know that without safety, our safety. We know that without safety, our brain is not capable of creating brain is not capable of creating brain is not capable of creating original creative thoughts. And so we're original creative thoughts. And so we're original creative thoughts. And so we're building energy and or we're building building energy and or we're building building energy and or we're building technology and space to discover what technology and space to discover what technology and space to discover what that can look like. And I'm with Ben. that can look like. And I'm with Ben. that can look like. And I'm with Ben. >> Yeah, my name is Ben Kobati. I'm the >> Yeah, my name is Ben Kobati. I'm the >> Yeah, my name is Ben Kobati. I'm the general partner and founder of Red Rubic general partner and founder of Red Rubic general partner and founder of Red Rubic Capital and Noble founder which is an Capital and Noble founder which is an Capital and Noble founder which is an startup ecosystem. U we're building in startup ecosystem. U we're building in startup ecosystem. U we're building in Houston. Um all of us together there are Houston. Um all of us together there are Houston. Um all of us together there are many people here. Brazilia is leading many people here. Brazilia is leading many people here. Brazilia is leading the the the chapter but there are many the the the chapter but there are many the the the chapter but there are many other partners uh helping building and other partners uh helping building and other partners uh helping building and putting things together. Today we're putting things together. Today we're putting things together. Today we're going to talk about due diligence and do going to talk about due diligence and do going to talk about due diligence and do which it shocks people when when they which it shocks people when when they which it shocks people when when they learn how we see do the due diligence learn how we see do the due diligence learn how we see do the due diligence and how they make decisions is not like and how they make decisions is not like and how they make decisions is not like what people think what people think what people think >> right.

>> right. >> right. >> Yeah. It's going to be it's going to be >> Yeah. It's going to be it's going to be >> Yeah. It's going to be it's going to be interesting. interesting. interesting. >> We at Creattopia have been learning so >> We at Creattopia have been learning so >> We at Creattopia have been learning so much from just sitting sitting down with much from just sitting sitting down with much from just sitting sitting down with you and having conversations, we're you and having conversations, we're you and having conversations, we're like, "Oh, wow. We have to do like, "Oh, wow. We have to do like, "Oh, wow. We have to do everything." everything." everything." >> Yeah. >> Yeah. >> Yeah. >> So, let's let's define deal flow. Uh >> So, let's let's define deal flow. Uh >> So, let's let's define deal flow. Uh when you say deal flow, what do you what when you say deal flow, what do you what when you say deal flow, what do you what are you actually looking for? or are you actually looking for? or are you actually looking for? or whatever. whatever. whatever. >> So, deal flow um it it's the process and >> So, deal flow um it it's the process and >> So, deal flow um it it's the process and it's the it's the it's the the flow of how VCs the flow of how VCs the flow of how VCs find source um validate do the due find source um validate do the due find source um validate do the due diligence and make decisions on the diligence and make decisions on the diligence and make decisions on the investments. So institutional investments. So institutional investments. So institutional um investors like VCs, they have this um investors like VCs, they have this um investors like VCs, they have this process that everybody in the firm uses process that everybody in the firm uses process that everybody in the firm uses to source, evaluate and make decisions. to source, evaluate and make decisions. to source, evaluate and make decisions. They build the deal flow because They build the deal flow because They build the deal flow because everybody should be on the same page. everybody should be on the same page. everybody should be on the same page. And we have this slide. So, we're going And we have this slide. So, we're going And we have this slide. So, we're going to show you like what are the steps of to show you like what are the steps of to show you like what are the steps of deal flow and and know how we're going deal flow and and know how we're going deal flow and and know how we're going to how a VC firm uh is going to uh make to how a VC firm uh is going to uh make to how a VC firm uh is going to uh make decisions based on that uh that default.

decisions based on that uh that default. decisions based on that uh that default. >> Yeah. So, here's the slide. >> Yeah. So, here's the slide. >> Yeah. So, here's the slide. >> Yep. Here's the slide. The first step >> Yep. Here's the slide. The first step >> Yep. Here's the slide. The first step when you look at it is the outreach. when you look at it is the outreach. when you look at it is the outreach. And a lot of uh VCs they use uh you know And a lot of uh VCs they use uh you know And a lot of uh VCs they use uh you know people that they work for the firm. They people that they work for the firm. They people that they work for the firm. They are mainly associates and analysts. They are mainly associates and analysts. They are mainly associates and analysts. They work for the firm. They go to community. work for the firm. They go to community. work for the firm. They go to community. Uh they do scouting and they have other Uh they do scouting and they have other Uh they do scouting and they have other people that they uh help the firm uh to people that they uh help the firm uh to people that they uh help the firm uh to go find quote unquote startup deals for go find quote unquote startup deals for go find quote unquote startup deals for VCs. The startups are deals you know we VCs. The startups are deals you know we VCs. The startups are deals you know we like it or not. like it or not. like it or not. >> We are we are the deal. >> We are we are the deal. >> We are we are the deal. >> We are the deals, right? [laughter] >> We are the deals, right? [laughter] >> We are the deals, right? [laughter] >> And then so when they find it then there >> And then so when they find it then there >> And then so when they find it then there is an intake process. So some VCs they is an intake process. So some VCs they is an intake process. So some VCs they have a Google form [laughter] have a Google form [laughter] have a Google form [laughter] they have and you know modern you know they have and you know modern you know they have and you know modern you know modern VCs they have like uh I don't modern VCs they have like uh I don't modern VCs they have like uh I don't know a form that you can go submit the know a form that you can go submit the know a form that you can go submit the information and that's kind of like the information and that's kind of like the information and that's kind of like the intake part of it and if you look at the intake part of it and if you look at the intake part of it and if you look at the chart again so when do they do intake chart again so when do they do intake chart again so when do they do intake recently I have seen a lot of VCs uh recently I have seen a lot of VCs uh recently I have seen a lot of VCs uh doing the intake um and scoring the doing the intake um and scoring the doing the intake um and scoring the startups so what they you they ask you startups so what they you they ask you startups so what they you they ask you questions you upload your deck you questions you upload your deck you questions you upload your deck you upload your business plan they go upload your business plan they go upload your business plan they go through the deck and they give you score through the deck and they give you score through the deck and they give you score based on u different criteria VCs look based on u different criteria VCs look based on u different criteria VCs look at right at right at right that's that's just the beginning like a that's that's just the beginning like a that's that's just the beginning like a lot of people think if I go and do like lot of people think if I go and do like lot of people think if I go and do like the intake and score

the intake and score the intake and score uh score high I'm going to get funded uh score high I'm going to get funded uh score high I'm going to get funded isn't is that like interesting like isn't is that like interesting like isn't is that like interesting like >> uh when you think about it >> uh when you think about it >> uh when you think about it >> uh you go through it and you think I'm >> uh you go through it and you think I'm >> uh you go through it and you think I'm going going to get funded. Right. going going to get funded. Right. going going to get funded. Right. >> Right. >> Right. >> Right. >> Right. And >> Right. And >> Right. And >> like it's like you're getting a grade, >> like it's like you're getting a grade, >> like it's like you're getting a grade, right? right? right? >> Yeah. Is you're going to get grade and >> Yeah. Is you're going to get grade and >> Yeah. Is you're going to get grade and sometimes is is you know is really sometimes is is you know is really sometimes is is you know is really people get really anxious because oh I people get really anxious because oh I people get really anxious because oh I don't want to submit this because you don't want to submit this because you don't want to submit this because you know they're going to score me. What know they're going to score me. What know they're going to score me. What happen if I score you know low? You know happen if I score you know low? You know happen if I score you know low? You know it's just and then people get really it's just and then people get really it's just and then people get really really excited when they score high. really excited when they score high. really excited when they score high. >> But this is when it gets to the next >> But this is when it gets to the next >> But this is when it gets to the next step of the DFO which is the step of the DFO which is the step of the DFO which is the uh uh uh >> initial screen >> initial screen >> initial screen >> the the initial screening. Right. So >> the the initial screening. Right. So >> the the initial screening. Right. So what they do they just built that um uh what they do they just built that um uh what they do they just built that um uh document is a big document we're going document is a big document we're going document is a big document we're going to have we're going to show you some to have we're going to show you some to have we're going to show you some section of the document next section of the document next section of the document next on the on the document on the on the document on the on the document they are going to go and capture all the they are going to go and capture all the they are going to go and capture all the information the the the startupload and information the the the startupload and information the the the startupload and then VCs they have associates and then VCs they have associates and then VCs they have associates and analysts and and partners they're going analysts and and partners they're going analysts and and partners they're going to do their own due diligence. So to do their own due diligence. So to do their own due diligence. So basically they put everything that basically they put everything that basically they put everything that startups provide startups provide startups provide into the document into the document into the document then the next step starts which is the then the next step starts which is the then the next step starts which is the due diligence which is one of the most due diligence which is one of the most due diligence which is one of the most comprehensive comprehensive comprehensive part of it. Um, so how like just just a part of it. Um, so how like just just a part of it. Um, so how like just just a guess how do you think the due diligence

guess how do you think the due diligence guess how do you think the due diligence work work work from a startup perspective? Like you you from a startup perspective? Like you you from a startup perspective? Like you you just you just provided all this just you just provided all this just you just provided all this information. How do you think they're information. How do you think they're information. How do you think they're going to do the due diligence and look going to do the due diligence and look going to do the due diligence and look at the at the at the >> Well, I'm kind of cheating because you >> Well, I'm kind of cheating because you >> Well, I'm kind of cheating because you already already already >> Yeah, I already told you, [laughter] but >> Yeah, I already told you, [laughter] but >> Yeah, I already told you, [laughter] but it's okay. it's okay. it's okay. >> Well, you you I mean, you have to look >> Well, you you I mean, you have to look >> Well, you you I mean, you have to look at everything that the startup is at everything that the startup is at everything that the startup is presenting, right? like like the website presenting, right? like like the website presenting, right? like like the website um the like making sure the numbers are um the like making sure the numbers are um the like making sure the numbers are correct. I'm sure there's like maybe a correct. I'm sure there's like maybe a correct. I'm sure there's like maybe a type of checklist that that investors go type of checklist that that investors go type of checklist that that investors go through to see if um if startups are through to see if um if startups are through to see if um if startups are hitting those check marks. Um that's hitting those check marks. Um that's hitting those check marks. Um that's really all I can I can think of right really all I can I can think of right really all I can I can think of right now. now. now. >> First they go and look at everything >> First they go and look at everything >> First they go and look at everything that you upload, right? So they have that you upload, right? So they have that you upload, right? So they have this checklist, right? So they they mine this checklist, right? So they they mine this checklist, right? So they they mine the the pitch deck. So you go and look the the pitch deck. So you go and look the the pitch deck. So you go and look at the pitch deck, get all the at the pitch deck, get all the at the pitch deck, get all the information out of the pitch deck. You information out of the pitch deck. You information out of the pitch deck. You put it in that uh comprehensive document put it in that uh comprehensive document put it in that uh comprehensive document that you create. Next, that you create. Next, that you create. Next, you're as an analyst, you're going to go you're as an analyst, you're going to go you're as an analyst, you're going to go out and you're going to look at the out and you're going to look at the out and you're going to look at the website. You can look at the the website. You can look at the the website. You can look at the the LinkedIn. You look for any signals for LinkedIn. You look for any signals for LinkedIn. You look for any signals for authority. you just do like a Google authority. you just do like a Google authority. you just do like a Google search and see like if if you type like search and see like if if you type like search and see like if if you type like the first three letters is going to the first three letters is going to the first three letters is going to bring autocomplete the website and and bring autocomplete the website and and bring autocomplete the website and and then looking at the market looking at then looking at the market looking at then looking at the market looking at even Google profile um looking at the

even Google profile um looking at the even Google profile um looking at the crunch base you have a crunch base you crunch base you have a crunch base you crunch base you have a crunch base you don't have it like where you listed don't have it like where you listed don't have it like where you listed looking at your previous rounds any looking at your previous rounds any looking at your previous rounds any information that you can obtain from uh information that you can obtain from uh information that you can obtain from uh from the resources that you have just from the resources that you have just from the resources that you have just imagine imagine imagine MBA NBA graduates, people that are MBA NBA graduates, people that are MBA NBA graduates, people that are experts in finance, experts in business experts in finance, experts in business experts in finance, experts in business now going through everything that you now going through everything that you now going through everything that you provide and they are going to look at provide and they are going to look at provide and they are going to look at the problem, look at the market, look at the problem, look at the market, look at the problem, look at the market, look at the the uh the solution, look at the the the uh the solution, look at the the the uh the solution, look at the demand, look at the competition, uh look demand, look at the competition, uh look demand, look at the competition, uh look at the team. I think that's the most at the team. I think that's the most at the team. I think that's the most important thing is this team able to important thing is this team able to important thing is this team able to deliver and then they will provide it. deliver and then they will provide it. deliver and then they will provide it. So they will provide uh this information So they will provide uh this information So they will provide uh this information to senior investors, people that are to senior investors, people that are to senior investors, people that are making uh investment decisions. And making uh investment decisions. And making uh investment decisions. And again, if you look at that um you know again, if you look at that um you know again, if you look at that um you know um um um look at that flowchart uh due diligence look at that flowchart uh due diligence look at that flowchart uh due diligence if you look at the the the due diligence if you look at the the the due diligence if you look at the the the due diligence part uh you need to provide a cap table part uh you need to provide a cap table part uh you need to provide a cap table and you need to provide a lot of VCs ask and you need to provide a lot of VCs ask and you need to provide a lot of VCs ask for a waterfall analysis. So what is a for a waterfall analysis. So what is a for a waterfall analysis. So what is a cap table? Cap table is a document is a cap table? Cap table is a document is a cap table? Cap table is a document is a legal document or spreadsheet that least legal document or spreadsheet that least legal document or spreadsheet that least all the people state all the owners of all the people state all the owners of all the people state all the owners of of the startup everybody that has a of the startup everybody that has a of the startup everybody that has a stake everybody that has share everybody stake everybody that has share everybody stake everybody that has share everybody that has ownership and it has the that has ownership and it has the that has ownership and it has the different type of stock uh if it's a different type of stock uh if it's a different type of stock uh if it's a common stock if it's a preferred stock common stock if it's a preferred stock common stock if it's a preferred stock if it's a convertible note everything is

if it's a convertible note everything is if it's a convertible note everything is listed there listed there listed there >> and then it has a waterfall analysis >> and then it has a waterfall analysis >> and then it has a waterfall analysis which is a a sequential a sequential um which is a a sequential a sequential um which is a a sequential a sequential um uh flow of how uh um how the profits and uh flow of how uh um how the profits and uh flow of how uh um how the profits and upside and ownership uh proceed to the upside and ownership uh proceed to the upside and ownership uh proceed to the end and the exit like you see like how end and the exit like you see like how end and the exit like you see like how people are going to get diluted how people are going to get diluted how people are going to get diluted how people are going to you know how the how people are going to you know how the how people are going to you know how the how the ownership changes at to the end and the ownership changes at to the end and the ownership changes at to the end and to the end when you exit what is the to the end when you exit what is the to the end when you exit what is the return on investment return on investment return on investment >> right >> right >> right >> so if go ahead >> so if go ahead >> so if go ahead >> so is that on the score sheet is that in >> so is that on the score sheet is that in >> so is that on the score sheet is that in >> that one is under the the the cap table >> that one is under the the the cap table >> that one is under the the the cap table and waterfall analysis. and waterfall analysis. and waterfall analysis. >> Okay. >> Okay. >> Okay. >> So when they do the waterfall analysis >> So when they do the waterfall analysis >> So when they do the waterfall analysis and and this is not in the scorecard. and and this is not in the scorecard. and and this is not in the scorecard. >> Yeah, that's what it >> Yeah, that's what it >> Yeah, that's what it >> Yeah. Exactly. >> Yeah. Exactly. >> Yeah. Exactly. >> So So you do the score the scorecard >> So So you do the score the scorecard >> So So you do the score the scorecard >> then you turn everything in and then >> then you turn everything in and then >> then you turn everything in and then there's due diligence after that. there's due diligence after that. there's due diligence after that. >> So for for >> So for for >> So for for VCs you need to build the scorecard. You VCs you need to build the scorecard. You VCs you need to build the scorecard. You need to build the comprehensive need to build the comprehensive need to build the comprehensive document. You need to build your own document. You need to build your own document. You need to build your own version of cap table and waterfall an version of cap table and waterfall an version of cap table and waterfall an analysis. You need to do your own analysis. You need to do your own analysis. You need to do your own version of market uh analysis.

version of market uh analysis. version of market uh analysis. Uh you need to do your own version of uh Uh you need to do your own version of uh Uh you need to do your own version of uh financials. So they ask you for financials. So they ask you for financials. So they ask you for financial. They ask you for three years financial. They ask you for three years financial. They ask you for three years of financials and they will ask you for of financials and they will ask you for of financials and they will ask you for projections projections projections because financials shows how you're because financials shows how you're because financials shows how you're performing. Projection shows how you are performing. Projection shows how you are performing. Projection shows how you are projecting and and the execution and the projecting and and the execution and the projecting and and the execution and the team is the guarantee for the execution. team is the guarantee for the execution. team is the guarantee for the execution. >> So if Yeah. Go ahead. >> So if Yeah. Go ahead. >> So if Yeah. Go ahead. >> No. >> No. >> No. >> So basically what it is if you're saying >> So basically what it is if you're saying >> So basically what it is if you're saying I'm going to make $500 million in the I'm going to make $500 million in the I'm going to make $500 million in the next three years. They're like how? next three years. They're like how? next three years. They're like how? >> And that's where the pitch deck comes >> And that's where the pitch deck comes >> And that's where the pitch deck comes into play. into play. into play. >> The pitch deck should show how you're >> The pitch deck should show how you're >> The pitch deck should show how you're going to achieve everything that you're going to achieve everything that you're going to achieve everything that you're saying. uh moving forward and why this saying. uh moving forward and why this saying. uh moving forward and why this team can uh execute where are the gaps team can uh execute where are the gaps team can uh execute where are the gaps are you going to hire somebody are you going to hire somebody are you going to hire somebody >> right >> right >> right >> uh so so that's kind of like the the due >> uh so so that's kind of like the the due >> uh so so that's kind of like the the due diligence which is very comprehensive diligence which is very comprehensive diligence which is very comprehensive >> right >> right >> right >> so basically if somebody just you are >> so basically if somebody just you are >> so basically if somebody just you are just applying for a VC fund you get in just applying for a VC fund you get in just applying for a VC fund you get in the website and you do like the the website and you do like the the website and you do like the scorecard and it says like you're 90% scorecard and it says like you're 90% scorecard and it says like you're 90% ready that's just a signal that's where ready that's just a signal that's where ready that's just a signal that's where you know they're going to oh yeah let you know they're going to oh yeah let you know they're going to oh yeah let Let me talk to you.

Let me talk to you. Let me talk to you. >> Mhm. >> Mhm. >> Mhm. >> The real thing >> The real thing >> The real thing >> have a conversation. >> have a conversation. >> have a conversation. >> Yeah. [laughter] >> Yeah. [laughter] >> Yeah. [laughter] Starts after that right after that. Starts after that right after that. Starts after that right after that. >> Wow. Do you just do you feel like uh >> Wow. Do you just do you feel like uh >> Wow. Do you just do you feel like uh investors are using AI to do that and investors are using AI to do that and investors are using AI to do that and how is that affecting the space? how is that affecting the space? how is that affecting the space? >> So right now a lot of investors are >> So right now a lot of investors are >> So right now a lot of investors are using AI. So a lot of agentic uh flows using AI. So a lot of agentic uh flows using AI. So a lot of agentic uh flows AI is good for this type of stuff if you AI is good for this type of stuff if you AI is good for this type of stuff if you configure it correctly. configure it correctly. configure it correctly. >> Right? AI is as good as the person that >> Right? AI is as good as the person that >> Right? AI is as good as the person that is creating AI, is creating AI, is creating AI, >> right? [laughter] >> right? [laughter] >> right? [laughter] It's just like any other system. So a It's just like any other system. So a It's just like any other system. So a lot of investment firms and VCs and lot of investment firms and VCs and lot of investment firms and VCs and investors are using AI to do the due investors are using AI to do the due investors are using AI to do the due diligence which creates the risk of diligence which creates the risk of diligence which creates the risk of if it's not human- centered then they if it's not human- centered then they if it's not human- centered then they may miss like big opportunities may miss like big opportunities may miss like big opportunities >> right >> right >> right >> know a lot of big opportunities are not >> know a lot of big opportunities are not >> know a lot of big opportunities are not obvious like you can't really see the obvious like you can't really see the obvious like you can't really see the opportunity there opportunity there opportunity there >> and VC's expertise a lot of time >> and VC's expertise a lot of time >> and VC's expertise a lot of time successful ones is to see what is not successful ones is to see what is not successful ones is to see what is not obvious when no one else can see it, obvious when no one else can see it, obvious when no one else can see it, >> right?

>> right? >> right? >> You just go and find that hidden gem >> You just go and find that hidden gem >> You just go and find that hidden gem and and then this is where you're going and and then this is where you're going and and then this is where you're going to make it big. So AI is playing a big to make it big. So AI is playing a big to make it big. So AI is playing a big role, but the thing is if you don't role, but the thing is if you don't role, but the thing is if you don't really do it uh correctly and if you really do it uh correctly and if you really do it uh correctly and if you don't do it right, um then you're going don't do it right, um then you're going don't do it right, um then you're going to miss a lot of opportunities, to miss a lot of opportunities, to miss a lot of opportunities, >> right? What are some uh absolute green >> right? What are some uh absolute green >> right? What are some uh absolute green flags and red flags that investors? flags and red flags that investors? flags and red flags that investors? >> Sure. >> Sure. >> Sure. >> Yeah. >> Yeah. >> Yeah. >> So, first thing they wanted to see is a >> So, first thing they wanted to see is a >> So, first thing they wanted to see is a big market. big market. big market. The market should be big. Basically, The market should be big. Basically, The market should be big. Basically, your t your total addressable market. your t your total addressable market. your t your total addressable market. >> That should be a substantial market that >> That should be a substantial market that >> That should be a substantial market that you are hitting. Remember VCs, if you are hitting. Remember VCs, if you are hitting. Remember VCs, if somebody is investing $10 million, they somebody is investing $10 million, they somebody is investing $10 million, they want to get like at least 20x return. So want to get like at least 20x return. So want to get like at least 20x return. So they want to get like $200 million in they want to get like $200 million in they want to get like $200 million in return. If you're not hitting the fin return. If you're not hitting the fin return. If you're not hitting the fin 1.52 billion exit, how they're going to 1.52 billion exit, how they're going to 1.52 billion exit, how they're going to get their 200 million return. get their 200 million return. get their 200 million return. >> If the the the market is like 100 >> If the the the market is like 100 >> If the the the market is like 100 million, million, million, it's not is just barely enough to cover it's not is just barely enough to cover it's not is just barely enough to cover uh the the founders, the people that uh the the founders, the people that uh the the founders, the people that invested before VCs. So, so the market invested before VCs. So, so the market invested before VCs. So, so the market and the demand. So, you need to show and the demand. So, you need to show and the demand. So, you need to show there is a demand.

there is a demand. there is a demand. >> So, anything that shows any any green >> So, anything that shows any any green >> So, anything that shows any any green like anything that shows any signal that like anything that shows any signal that like anything that shows any signal that shows there's a demand, that's your you shows there's a demand, that's your you shows there's a demand, that's your you know uh green check. But then if you know uh green check. But then if you know uh green check. But then if you cannot show the demand, if it's just a cannot show the demand, if it's just a cannot show the demand, if it's just a one one hit wonder, then that's a big one one hit wonder, then that's a big one one hit wonder, then that's a big red flag. If even if you have customers red flag. If even if you have customers red flag. If even if you have customers and you cannot show the market is big and you cannot show the market is big and you cannot show the market is big enough, that's a red flag. enough, that's a red flag. enough, that's a red flag. You need to be very clear everywhere on You need to be very clear everywhere on You need to be very clear everywhere on the web, on your um LinkedIn, on your the web, on your um LinkedIn, on your the web, on your um LinkedIn, on your different channels. You should build different channels. You should build different channels. You should build authority and trust and you should show authority and trust and you should show authority and trust and you should show this is um uh you should clearly show this is um uh you should clearly show this is um uh you should clearly show the business model, the pricing model, the business model, the pricing model, the business model, the pricing model, the description, everything when they the description, everything when they the description, everything when they check because a lot of time VCs don't check because a lot of time VCs don't check because a lot of time VCs don't really look at the the deck by itself. really look at the the deck by itself. really look at the the deck by itself. they go do their own due diligence. The they go do their own due diligence. The they go do their own due diligence. The [snorts] deck should be consistent with [snorts] deck should be consistent with [snorts] deck should be consistent with the website should be consistent with the website should be consistent with the website should be consistent with the conversations that they have with the conversations that they have with the conversations that they have with you.

you. you. >> And how much of the due diligence uh you >> And how much of the due diligence uh you >> And how much of the due diligence uh you talk about the team because we I mean a talk about the team because we I mean a talk about the team because we I mean a lot of that is um numbers and documents lot of that is um numbers and documents lot of that is um numbers and documents and and things that can be analyzed. Um and and things that can be analyzed. Um and and things that can be analyzed. Um but you talk about the team, how much of but you talk about the team, how much of but you talk about the team, how much of the due diligence is on the team but the due diligence is on the team but the due diligence is on the team but also the founder and what are and what also the founder and what are and what also the founder and what are and what are they looking for? are they looking for? are they looking for? >> [snorts] >> [snorts] >> [snorts] >> my experience I've seen lot of VCs they >> my experience I've seen lot of VCs they >> my experience I've seen lot of VCs they put a big weight on the team especially put a big weight on the team especially put a big weight on the team especially the founders the founders the founders they want to know if you have the vision they want to know if you have the vision they want to know if you have the vision and you have the people that they can and you have the people that they can and you have the people that they can first they can see your vision the way first they can see your vision the way first they can see your vision the way you see it and they can execute you see it and they can execute you see it and they can execute it's very important if just imagine when it's very important if just imagine when it's very important if just imagine when Uber was introduced there There was Uber was introduced there There was Uber was introduced there There was nothing such an such uber like nothing such an such uber like nothing such an such uber like >> it was really hard to communicate >> it was really hard to communicate >> it was really hard to communicate something that doesn't exist. something that doesn't exist. something that doesn't exist. >> Right. >> Right. >> Right. >> Right. >> Right. >> Right. >> Right.

>> Right. >> Right. >> So if you are if you are a founder, you >> So if you are if you are a founder, you >> So if you are if you are a founder, you should be able to communicate your should be able to communicate your should be able to communicate your vision very clearly. So that's very vision very clearly. So that's very vision very clearly. So that's very important. And now you need to have important. And now you need to have important. And now you need to have expertise. You need to have experience expertise. You need to have experience expertise. You need to have experience to build a team that can execute at to build a team that can execute at to build a team that can execute at billions of dollars. billions of dollars. billions of dollars. VC is like if they see potential and it VC is like if they see potential and it VC is like if they see potential and it gets to the coachability of the founders gets to the coachability of the founders gets to the coachability of the founders they they're looking for somebody that they they're looking for somebody that they they're looking for somebody that is coachable they say like you know is coachable they say like you know is coachable they say like you know working with a startup is like marriage working with a startup is like marriage working with a startup is like marriage >> if you cannot get along with that person >> if you cannot get along with that person >> if you cannot get along with that person >> they're not going to do it like if you >> they're not going to do it like if you >> they're not going to do it like if you have the best people think oh I have the have the best people think oh I have the have the best people think oh I have the best idea they should work with they best idea they should work with they best idea they should work with they must work no there's no must or should must work no there's no must or should must work no there's no must or should >> they just say no in your face >> they just say no in your face >> they just say no in your face >> if you are not like a friendly >> if you are not like a friendly >> if you are not like a friendly approachable person approachable person approachable person and they're not going to do it. So being and they're not going to do it. So being and they're not going to do it. So being approachable, being coachable, approachable, being coachable, approachable, being coachable, willingness to pivot, that's those are willingness to pivot, that's those are willingness to pivot, that's those are the qualities they wanted to see. And of the qualities they wanted to see. And of the qualities they wanted to see. And of course a team of people that they are course a team of people that they are course a team of people that they are executed, they can work with uh you know executed, they can work with uh you know executed, they can work with uh you know very uh on certain uh environment very uh on certain uh environment very uh on certain uh environment and they can just pivot and they can and they can just pivot and they can and they can just pivot and they can navigate, navigate, navigate, >> right? And how do you distinguish >> right? And how do you distinguish >> right? And how do you distinguish between being coachable and just being between being coachable and just being between being coachable and just being agreeable agreeable agreeable um and like wanting to just do whatever um and like wanting to just do whatever um and like wanting to just do whatever the investor is them to do.

the investor is them to do. the investor is them to do. >> So we look for uh critical thinking and >> So we look for uh critical thinking and >> So we look for uh critical thinking and collaboration right. So when you collaboration right. So when you collaboration right. So when you collaborate with somebody it doesn't collaborate with somebody it doesn't collaborate with somebody it doesn't mean that you agree mean that you agree mean that you agree >> right you just start having conversation >> right you just start having conversation >> right you just start having conversation and you use critical thinking and you use critical thinking and you use critical thinking questioning the matter logically questioning the matter logically questioning the matter logically >> and then uh you know getting into a >> and then uh you know getting into a >> and then uh you know getting into a common ground and a common uh goal and a common ground and a common uh goal and a common ground and a common uh goal and a common answer to the questions and common answer to the questions and common answer to the questions and solving the challenge is problem solving solving the challenge is problem solving solving the challenge is problem solving critical thinking and being critical thinking and being critical thinking and being collaborative rather than uh saying you collaborative rather than uh saying you collaborative rather than uh saying you know Yes, the yes man doesn't work in know Yes, the yes man doesn't work in know Yes, the yes man doesn't work in the we see they don't want to see a yes the we see they don't want to see a yes the we see they don't want to see a yes man man man >> but at the same time they don't want to >> but at the same time they don't want to >> but at the same time they don't want to see somebody that is just always arguing see somebody that is just always arguing see somebody that is just always arguing and very difficult to work and very difficult to work and very difficult to work >> and won't and won't pivot won't shift >> and won't and won't pivot won't shift >> and won't and won't pivot won't shift >> yeah exactly no matter what oh this is >> yeah exactly no matter what oh this is >> yeah exactly no matter what oh this is my way or highway my way or highway my way or highway >> right >> right >> right >> but it's not yes sir yes sir is not >> but it's not yes sir yes sir is not >> but it's not yes sir yes sir is not going to get you through going to get you through going to get you through >> right >> right >> right >> because we see like how this guy is >> because we see like how this guy is >> because we see like how this guy is gonna build a billion dollar company gonna build a billion dollar company gonna build a billion dollar company being a yes man being a yes man being a yes man >> right Right. And that Y definitely that >> right Right. And that Y definitely that >> right Right. And that Y definitely that applies to marriage. [laughter] applies to marriage. [laughter] applies to marriage. [laughter] >> Exactly.

>> Exactly. >> Exactly. >> You don't want just a yes and you don't >> You don't want just a yes and you don't >> You don't want just a yes and you don't want like somebody that's like just want like somebody that's like just want like somebody that's like just really stuck in their ways and will not really stuck in their ways and will not really stuck in their ways and will not shift. shift. shift. >> Yeah. >> Yeah. >> Yeah. >> Yeah. That's great. Um we had a few more >> Yeah. That's great. Um we had a few more >> Yeah. That's great. Um we had a few more slides. Is do you want to keep going slides. Is do you want to keep going slides. Is do you want to keep going through them? through them? through them? >> Uh >> Uh >> Uh so the first slide when the VC is um I so the first slide when the VC is um I so the first slide when the VC is um I just put it from Google. Uh it's an just put it from Google. Uh it's an just put it from Google. Uh it's an investment thesis. This is like I want investment thesis. This is like I want investment thesis. This is like I want to introduce people to uh some of the VC to introduce people to uh some of the VC to introduce people to uh some of the VC terms like when you build an investment terms like when you build an investment terms like when you build an investment thesis is basically a document that uh thesis is basically a document that uh thesis is basically a document that uh outlines the core u uh concept of the outlines the core u uh concept of the outlines the core u uh concept of the business and it has like the market it business and it has like the market it business and it has like the market it has the competitive edge it has the the has the competitive edge it has the the has the competitive edge it has the the catalyst you know why now the financial catalyst you know why now the financial catalyst you know why now the financial outlook the risk assessment so VC's put outlook the risk assessment so VC's put outlook the risk assessment so VC's put a comprehensive document and together a comprehensive document and together a comprehensive document and together that create an investment thesis of why that create an investment thesis of why that create an investment thesis of why we need this, why this company is we need this, why this company is we need this, why this company is investable. And it just create uh the investable. And it just create uh the investable. And it just create uh the outline of everything that you need to outline of everything that you need to outline of everything that you need to know about a company. And so with that know about a company. And so with that know about a company. And so with that and then they create an investment memo and then they create an investment memo and then they create an investment memo which is a different document, but with which is a different document, but with which is a different document, but with that then they add a summary of that that then they add a summary of that that then they add a summary of that investment thesis into their like investment thesis into their like investment thesis into their like comprehensive document. And I we have comprehensive document. And I we have comprehensive document. And I we have like here like this is a you know I just like here like this is a you know I just like here like this is a you know I just put like XYZ company. Uh this is a lot put like XYZ company. Uh this is a lot put like XYZ company. Uh this is a lot like I just got that from one of my like I just got that from one of my like I just got that from one of my deals that we were just looking at and deals that we were just looking at and deals that we were just looking at and this is a real deal. This is not this is a real deal. This is not this is a real deal. This is not something made up. I just changed the

something made up. I just changed the something made up. I just changed the name and changed some of the the the name and changed some of the the the name and changed some of the the the parameters so you can see like and um so parameters so you can see like and um so parameters so you can see like and um so they create like a a digital earth they create like a a digital earth they create like a a digital earth replica right and it has like a the 3D replica right and it has like a the 3D replica right and it has like a the 3D replica of earth it's a very cool uh replica of earth it's a very cool uh replica of earth it's a very cool uh innovative um solution right if you look innovative um solution right if you look innovative um solution right if you look at it has like AI it has like this very at it has like AI it has like this very at it has like AI it has like this very advanced technology that uh really advanced technology that uh really advanced technology that uh really creates a replica of of earth it can be creates a replica of of earth it can be creates a replica of of earth it can be used in many things, you know, flight used in many things, you know, flight used in many things, you know, flight tracking, uh, oil and gas, uh, a lot of tracking, uh, oil and gas, uh, a lot of tracking, uh, oil and gas, uh, a lot of different things. But so this is kind of different things. But so this is kind of different things. But so this is kind of like the the description of the company like the the description of the company like the the description of the company and this is the the investment thesis and this is the the investment thesis and this is the the investment thesis that explains, you know, what they do, that explains, you know, what they do, that explains, you know, what they do, what they have done, uh, what is the what they have done, uh, what is the what they have done, uh, what is the market and all of that. But then in the market and all of that. But then in the market and all of that. But then in the next uh slide, if you look at it, this next uh slide, if you look at it, this next uh slide, if you look at it, this is a business model, right? Very is a business model, right? Very is a business model, right? Very interesting. So we had the deck for this interesting. So we had the deck for this interesting. So we had the deck for this uh company but see like the an the uh company but see like the an the uh company but see like the an the analyst said unclear from the website.

analyst said unclear from the website. analyst said unclear from the website. So we had the deck So we had the deck So we had the deck >> but we said is is unclear from the >> but we said is is unclear from the >> but we said is is unclear from the website. So this this is the importance website. So this this is the importance website. So this this is the importance of like all your information should be of like all your information should be of like all your information should be consistent right and and you know they consistent right and and you know they consistent right and and you know they have really notable customers right they have really notable customers right they have really notable customers right they have uh loit Martin they have Amazon have uh loit Martin they have Amazon have uh loit Martin they have Amazon they have you know just look at like they have you know just look at like they have you know just look at like Amazon Amazon Prime uh ARM code like Amazon Amazon Prime uh ARM code like Amazon Amazon Prime uh ARM code like just all those different wow just all those different wow just all those different wow >> different customers so >> different customers so >> different customers so >> just look at it you know in your mind >> just look at it you know in your mind >> just look at it you know in your mind >> this is a novel technology this is like >> this is a novel technology this is like >> this is a novel technology this is like a company you you you got to be crazy if a company you you you got to be crazy if a company you you you got to be crazy if you not you don't invest in this. So now you not you don't invest in this. So now you not you don't invest in this. So now if you look at the next uh section of if you look at the next uh section of if you look at the next uh section of the due diligence document the due diligence document the due diligence document these are the final thoughts this is these are the final thoughts this is these are the final thoughts this is like the GIS is a very crowded market. like the GIS is a very crowded market. like the GIS is a very crowded market. >> Yes your solution is great everything >> Yes your solution is great everything >> Yes your solution is great everything you built is awesome but this is a very you built is awesome but this is a very you built is awesome but this is a very crowded market.

crowded market. crowded market. And then the the next one is the market And then the the next one is the market And then the the next one is the market size seems doesn't seem to be big. size seems doesn't seem to be big. size seems doesn't seem to be big. It's it's just like It's it's just like It's it's just like >> it's a crowded small market. >> it's a crowded small market. >> it's a crowded small market. So question is did the uh founder do a So question is did the uh founder do a So question is did the uh founder do a good job good job good job uh painting that picture doing the uh painting that picture doing the uh painting that picture doing the market sizing correctly market sizing correctly market sizing correctly >> or not like or have they been able to >> or not like or have they been able to >> or not like or have they been able to communicate that or with the communicate that or with the communicate that or with the conversations that they had with conversations that they had with conversations that they had with analysts they were able to defend their analysts they were able to defend their analysts they were able to defend their numbers. Sometimes you put oh this numbers. Sometimes you put oh this numbers. Sometimes you put oh this market is like $50 billion analyst says market is like $50 billion analyst says market is like $50 billion analyst says no to me it's like 100 million. you no to me it's like 100 million. you no to me it's like 100 million. you should be able to defend it. should be able to defend it. should be able to defend it. >> That's where I'm saying like is a >> That's where I'm saying like is a >> That's where I'm saying like is a collaboration rather than you know uh collaboration rather than you know uh collaboration rather than you know uh just arguing. Sometimes people argue no just arguing. Sometimes people argue no just arguing. Sometimes people argue no I don't I don't agree with this like I don't I don't agree with this like I don't I don't agree with this like they go into argument rather than they go into argument rather than they go into argument rather than collaboration right collaboration right collaboration right >> and uh so they don't own their data. I >> and uh so they don't own their data. I >> and uh so they don't own their data. I have seen a lot of companies they're have seen a lot of companies they're have seen a lot of companies they're using using using third party data third party tools third party data third party tools third party data third party tools >> and in VC's you know mind you know >> and in VC's you know mind you know >> and in VC's you know mind you know you're using a different tool from a you're using a different tool from a you're using a different tool from a different person anyone else can do it.

different person anyone else can do it. different person anyone else can do it. What what if your competitor come buy What what if your competitor come buy What what if your competitor come buy that company that company that company >> right? >> right? >> right? >> Right. >> Right. >> Right. And you know there are other uh uh GIS And you know there are other uh uh GIS And you know there are other uh uh GIS analytics solutions. So they can use analytics solutions. So they can use analytics solutions. So they can use those solutions. And again if you look those solutions. And again if you look those solutions. And again if you look at the at the end of the the slide it at the at the end of the the slide it at the at the end of the the slide it says the market is not too weak right. says the market is not too weak right. says the market is not too weak right. And then I think the next step the next And then I think the next step the next And then I think the next step the next slide uh when you we look at it is the slide uh when you we look at it is the slide uh when you we look at it is the past email that you know VC send to to past email that you know VC send to to past email that you know VC send to to the customer and it says the market is the customer and it says the market is the customer and it says the market is crowded and you know you have your own crowded and you know you have your own crowded and you know you have your own you don't have your own um there are you don't have your own um there are you don't have your own um there are other tools there are other people that other tools there are other people that other tools there are other people that they have their own 3D digital map and they have their own 3D digital map and they have their own 3D digital map and if they have like a suite of products if they have like a suite of products if they have like a suite of products that they can serve the customer. So a that they can serve the customer. So a that they can serve the customer. So a lot of people think, oh, you know, I lot of people think, oh, you know, I lot of people think, oh, you know, I built this really great uh product built this really great uh product built this really great uh product feature and I built this now I can go feature and I built this now I can go feature and I built this now I can go and and get the market and VCs are going and and get the market and VCs are going and and get the market and VCs are going to, you know, pour the money. No, it's to, you know, pour the money. No, it's to, you know, pour the money. No, it's not like always the case.

not like always the case. not like always the case. >> You need to think about the total >> You need to think about the total >> You need to think about the total market, the total customer need, how market, the total customer need, how market, the total customer need, how you're going to get this customer. You you're going to get this customer. You you're going to get this customer. You cannot just hook somebody with just one cannot just hook somebody with just one cannot just hook somebody with just one feature because your competitor can come feature because your competitor can come feature because your competitor can come and and get that feature, right? And uh and and get that feature, right? And uh and and get that feature, right? And uh you know uh even if even they have you know uh even if even they have you know uh even if even they have partnership with Microsoft and VDA uh partnership with Microsoft and VDA uh partnership with Microsoft and VDA uh but you know but you know but you know and even they have a favorable product and even they have a favorable product and even they have a favorable product market fit but is not the market is not market fit but is not the market is not market fit but is not the market is not big big big >> right and they cannot really go beyond >> right and they cannot really go beyond >> right and they cannot really go beyond $und00 million $und00 million $und00 million and because of the and the competitive and because of the and the competitive and because of the and the competitive advantage they need to define better advantage they need to define better advantage they need to define better define the competitive advantage define the competitive advantage define the competitive advantage is very interesting. Someone that has is very interesting. Someone that has is very interesting. Someone that has NVDA as their customer and partner, NVDA as their customer and partner, NVDA as their customer and partner, >> right, >> right, >> right, >> can really didn't do a good job on >> can really didn't do a good job on >> can really didn't do a good job on competitive advantage. competitive advantage. competitive advantage. >> This is exactly what we say. How big is >> This is exactly what we say. How big is >> This is exactly what we say. How big is the market? Why you are different and the market? Why you are different and the market? Why you are different and why you are better than your compet why you are better than your compet why you are better than your compet competitor, right?

competitor, right? competitor, right? >> And that's why, you know, they're saying >> And that's why, you know, they're saying >> And that's why, you know, they're saying uh uh you need to, you know, and they uh uh you need to, you know, and they uh uh you need to, you know, and they don't have a clear exit strategy. don't have a clear exit strategy. don't have a clear exit strategy. So um exit the strategy is one of the So um exit the strategy is one of the So um exit the strategy is one of the most important thing that you need to most important thing that you need to most important thing that you need to form from the day one. form from the day one. form from the day one. Every startup I talk to I just what is Every startup I talk to I just what is Every startup I talk to I just what is your the today is the day you are in New your the today is the day you are in New your the today is the day you are in New York City you're going public you're York City you're going public you're York City you're going public you're just you know ringing the bell what is just you know ringing the bell what is just you know ringing the bell what is your press after today your press after today your press after today >> right >> right >> right >> right what was the vision that you >> right what was the vision that you >> right what was the vision that you brought to life and that's your exit oh brought to life and that's your exit oh brought to life and that's your exit oh we we went public we have you know it we we went public we have you know it we we went public we have you know it was like a three billion dollar initial was like a three billion dollar initial was like a three billion dollar initial offering or so and so you know uh offering or so and so you know uh offering or so and so you know uh acquired us, right? So this was like a acquired us, right? So this was like a acquired us, right? So this was like a lot a real life example of a very lot a real life example of a very lot a real life example of a very promising company looks really good on promising company looks really good on promising company looks really good on paper paper paper >> score really high on uh scorecard but >> score really high on uh scorecard but >> score really high on uh scorecard but when it gets to due diligence when it gets to due diligence when it gets to due diligence you see how you know we said no to that you see how you know we said no to that you see how you know we said no to that company company company >> right >> right >> right >> and you know this is where I'm >> and you know this is where I'm >> and you know this is where I'm [clears throat] just when people are [clears throat] just when people are [clears throat] just when people are saying oh you know I just submitted this saying oh you know I just submitted this saying oh you know I just submitted this I've seen it like both ways people are I've seen it like both ways people are I've seen it like both ways people are getting really discouraged when they get getting really discouraged when they get getting really discouraged when they get like low score in the scorecards, VC like low score in the scorecards, VC like low score in the scorecards, VC scorecards or they become like really scorecards or they become like really scorecards or they become like really too excited when they get high scores.

too excited when they get high scores. too excited when they get high scores. That's just the beginning, That's just the beginning, That's just the beginning, >> right? >> right? >> right? >> And so all that is again in the cap >> And so all that is again in the cap >> And so all that is again in the cap table that the exit strategy, right? table that the exit strategy, right? table that the exit strategy, right? That's all in the cap table and the That's all in the cap table and the That's all in the cap table and the waterfall analysis. waterfall analysis. waterfall analysis. >> Everything is in the cap, you know, and >> Everything is in the cap, you know, and >> Everything is in the cap, you know, and waterfall analysis. You know there are waterfall analysis. You know there are waterfall analysis. You know there are softwares like Cardo you can there are softwares like Cardo you can there are softwares like Cardo you can there are softwares that just you can show your softwares that just you can show your softwares that just you can show your you know the cap which is like showing you know the cap which is like showing you know the cap which is like showing everybody that is listed on your uh on everybody that is listed on your uh on everybody that is listed on your uh on your uh the ownership of the people that your uh the ownership of the people that your uh the ownership of the people that are listed. are listed. are listed. >> Mh. >> Mh. >> Mh. >> But then you need to create the water >> But then you need to create the water >> But then you need to create the water for analysis and VCs do that you know for analysis and VCs do that you know for analysis and VCs do that you know internally doing it because they wanted internally doing it because they wanted internally doing it because they wanted to show and present it to investment to show and present it to investment to show and present it to investment committee. So when when the VC analysts committee. So when when the VC analysts committee. So when when the VC analysts get all this information create the cap get all this information create the cap get all this information create the cap table investment thesis all of those table investment thesis all of those table investment thesis all of those then it goes to investment committee then it goes to investment committee then it goes to investment committee which now the GP's general partners which now the GP's general partners which now the GP's general partners which are responsible for raising fund which are responsible for raising fund which are responsible for raising fund for VC which are responsible for making for VC which are responsible for making for VC which are responsible for making investment decisions investment decisions investment decisions work with other um experts in business work with other um experts in business work with other um experts in business and other people in the investment and other people in the investment and other people in the investment committee and they make the final committee and they make the final committee and they make the final decision. You may go to investment decision. You may go to investment decision. You may go to investment committee four four to five times they committee four four to five times they committee four four to five times they ask questions like okay you know how ask questions like okay you know how ask questions like okay you know how about this how about that the the about this how about that the the about this how about that the the analyst go back have a conversation with analyst go back have a conversation with analyst go back have a conversation with founder present next week so that's why founder present next week so that's why founder present next week so that's why it takes a long time it takes a long time it takes a long time >> right >> right >> right >> it's not like you just present this is >> it's not like you just present this is >> it's not like you just present this is an absolute great idea I'm running out an absolute great idea I'm running out an absolute great idea I'm running out of money so let me go and you know talk of money so let me go and you know talk of money so let me go and you know talk to this VC oh we scored really high to this VC oh we scored really high to this VC oh we scored really high they're really interested u let's go and they're really interested u let's go and they're really interested u let's go and hey guys we're going to get funded in in hey guys we're going to get funded in in hey guys we're going to get funded in in two weeks no it's not the way that it

two weeks no it's not the way that it two weeks no it's not the way that it works, works, works, >> right? >> right? >> right? >> Unless you are like a rock star that you >> Unless you are like a rock star that you >> Unless you are like a rock star that you have five different offers from five have five different offers from five have five different offers from five different VCs, five different term different VCs, five different term different VCs, five different term sheets, other than that, you know, no VC sheets, other than that, you know, no VC sheets, other than that, you know, no VC is going to give you a t a term sheet in is going to give you a t a term sheet in is going to give you a t a term sheet in the first interaction or just based on the first interaction or just based on the first interaction or just based on the scorecard, the scorecard, the scorecard, >> right? I really like the session that >> right? I really like the session that >> right? I really like the session that you did with Benjamin and I um about how you did with Benjamin and I um about how you did with Benjamin and I um about how the waterfall analysis connects to your the waterfall analysis connects to your the waterfall analysis connects to your TAM Samsung. It really blew my mind. TAM Samsung. It really blew my mind. TAM Samsung. It really blew my mind. I think we should have a session just on I think we should have a session just on I think we should have a session just on that. But do can you just speak to it? that. But do can you just speak to it? that. But do can you just speak to it? >> Yeah. No, absolutely. Absolutely. >> Yeah. No, absolutely. Absolutely. >> Yeah. No, absolutely. Absolutely. [laughter] [laughter] [laughter] >> Uh >> Uh >> Uh >> I was like no way. >> I was like no way. >> I was like no way. >> Yeah. So that's the that's the reaction >> Yeah. So that's the that's the reaction >> Yeah. So that's the that's the reaction I get every time I do. So I've developed I get every time I do. So I've developed I get every time I do. So I've developed this cap table, right? And then it has a this cap table, right? And then it has a this cap table, right? And then it has a waterfall analysis and it shows at each waterfall analysis and it shows at each waterfall analysis and it shows at each stage like how the the equity changes, stage like how the the equity changes, stage like how the the equity changes, how the how the valuation changes and how the how the valuation changes and how the how the valuation changes and then what is this exit, right? And when then what is this exit, right? And when then what is this exit, right? And when you get to the end of it, you're going you get to the end of it, you're going you get to the end of it, you're going to say we're going to do like a $3 to say we're going to do like a $3 to say we're going to do like a $3 billion exit, right?

billion exit, right? billion exit, right? >> So when you're at like seed and preed >> So when you're at like seed and preed >> So when you're at like seed and preed stage, you're going to say this is my stage, you're going to say this is my stage, you're going to say this is my valuation, right? This is my preede and valuation, right? This is my preede and valuation, right? This is my preede and seed valuation. How we calculate that? seed valuation. How we calculate that? seed valuation. How we calculate that? We find the comparable uh startups in We find the comparable uh startups in We find the comparable uh startups in your category and then we look at what your category and then we look at what your category and then we look at what is the multiplier is the multiplier is the multiplier at the exit. So the the startups that at the exit. So the the startups that at the exit. So the the startups that they exited. So if somebody exceeded at they exited. So if somebody exceeded at they exited. So if somebody exceeded at 10 billion dollar and the revenue was 10 billion dollar and the revenue was 10 billion dollar and the revenue was like 100 million, this is a 10x uh exit, like 100 million, this is a 10x uh exit, like 100 million, this is a 10x uh exit, right? right? right? >> You find 10 of them, you do like the >> You find 10 of them, you do like the >> You find 10 of them, you do like the multiplier for all 10 and then you find multiplier for all 10 and then you find multiplier for all 10 and then you find do like an average and and you find your do like an average and and you find your do like an average and and you find your multiplier. So you're going to say at my multiplier. So you're going to say at my multiplier. So you're going to say at my series A, I'm going to be a $2 million series A, I'm going to be a $2 million series A, I'm going to be a $2 million company. I'm going to have this revenue company. I'm going to have this revenue company. I'm going to have this revenue of 2 million, right? and my multiplier of 2 million, right? and my multiplier of 2 million, right? and my multiplier is 10 x 10 * 2 million is 28 million, is 10 x 10 * 2 million is 28 million, is 10 x 10 * 2 million is 28 million, right? And then at my sales B, I'm going right? And then at my sales B, I'm going right? And then at my sales B, I'm going to be um to be um to be um I don't know 5 million, 10 million, I don't know 5 million, 10 million, I don't know 5 million, 10 million, right?

right? right? >> Let's say 10 million. 10 times 10 >> Let's say 10 million. 10 times 10 >> Let's say 10 million. 10 times 10 million, you're 100. million, you're 100. million, you're 100. At series C, you're going to see say my At series C, you're going to see say my At series C, you're going to see say my I'm going to be at um um 15 million or I'm going to be at um um 15 million or I'm going to be at um um 15 million or 20 million or 25 million, right? Is $250 20 million or 25 million, right? Is $250 20 million or 25 million, right? Is $250 million and then at exit I'm going to be million and then at exit I'm going to be million and then at exit I'm going to be $3 billion. My question is like so how $3 billion. My question is like so how $3 billion. My question is like so how do you know at exit you're three do you know at exit you're three do you know at exit you're three billion, billion, billion, >> right? >> right? >> right? >> And that's your TAM, [laughter] right? >> And that's your TAM, [laughter] right? >> And that's your TAM, [laughter] right? So when you do your market sizing, So when you do your market sizing, So when you do your market sizing, >> that's your TAM and that's >> that's your TAM and that's >> that's your TAM and that's mapped to your uh waterfall. So when you mapped to your uh waterfall. So when you mapped to your uh waterfall. So when you go in front of investors and you say I'm go in front of investors and you say I'm go in front of investors and you say I'm $3 billion, why? Because this is my TAM $3 billion, why? Because this is my TAM $3 billion, why? Because this is my TAM is uh 30 billion is uh $ 35 billion and is uh 30 billion is uh $ 35 billion and is uh 30 billion is uh $ 35 billion and I'm going to uh penetrate 10% of that. I'm going to uh penetrate 10% of that. I'm going to uh penetrate 10% of that. And this is how I'm going to do it. And And this is how I'm going to do it. And And this is how I'm going to do it. And this is uh in in my deck go to section A this is uh in in my deck go to section A this is uh in in my deck go to section A that shows you how I'm going to do it.

that shows you how I'm going to do it. that shows you how I'm going to do it. >> And if you go like we work backwards on >> And if you go like we work backwards on >> And if you go like we work backwards on my series B is my SAM like and then you my series B is my SAM like and then you my series B is my SAM like and then you know so on so forth. know so on so forth. know so on so forth. >> So every time you create a valuation >> So every time you create a valuation >> So every time you create a valuation the question is how you are going to get the question is how you are going to get the question is how you are going to get that valuation. If you're saying I'm I that valuation. If you're saying I'm I that valuation. If you're saying I'm I have like $2 million revenue. So if it's have like $2 million revenue. So if it's have like $2 million revenue. So if it's 20 $2 million revenue what is the market 20 $2 million revenue what is the market 20 $2 million revenue what is the market size at that point? that you are going size at that point? that you are going size at that point? that you are going to penetrate you know $2 million and how to penetrate you know $2 million and how to penetrate you know $2 million and how >> right >> right >> right >> the question is what is the market size >> the question is what is the market size >> the question is what is the market size and how you're going to do that so and how you're going to do that so and how you're going to do that so that's how you're going to uh define that's how you're going to uh define that's how you're going to uh define your you know uh Samsung TAM and then your you know uh Samsung TAM and then your you know uh Samsung TAM and then how you're going to say how this is how how you're going to say how this is how how you're going to say how this is how I going to I'm going to penetrate that I going to I'm going to penetrate that I going to I'm going to penetrate that market and and why this is my revenue is market and and why this is my revenue is market and and why this is my revenue is going to be $2 million and that's my uh going to be $2 million and that's my uh going to be $2 million and that's my uh multiply multiply multiply >> right and that's in your pitch deck >> right and that's in your pitch deck >> right and that's in your pitch deck right right right >> that's in the pitch deck >> that's in the pitch deck >> that's in the pitch deck >> that's what you're going to So with a >> that's what you're going to So with a >> that's what you're going to So with a waterfall analysis and with uh the the waterfall analysis and with uh the the waterfall analysis and with uh the the cap with waterfall analysis, you just cap with waterfall analysis, you just cap with waterfall analysis, you just can walk through investors and an can walk through investors and an can walk through investors and an analyst and say like this is my this is analyst and say like this is my this is analyst and say like this is my this is everything that is going to happen at everything that is going to happen at everything that is going to happen at you know preede seat uh series A BC and you know preede seat uh series A BC and you know preede seat uh series A BC and and exit and they're going to ask how and exit and they're going to ask how and exit and they're going to ask how and you're say oh in my deck you know and you're say oh in my deck you know and you're say oh in my deck you know slide so and so uh this is my beach head slide so and so uh this is my beach head slide so and so uh this is my beach head market this is this is how I'm going to market this is this is how I'm going to market this is this is how I'm going to get into the market and this is where get into the market and this is where get into the market and this is where where you know I had this convertible where you know I had this convertible where you know I had this convertible able note from uh from previous able note from uh from previous able note from uh from previous investors at my preede and this is going investors at my preede and this is going investors at my preede and this is going to convert at this and this is how to convert at this and this is how to convert at this and this is how you're going to tell them uh your preede

you're going to tell them uh your preede you're going to tell them uh your preede investors that uh why I'm going to reach investors that uh why I'm going to reach investors that uh why I'm going to reach that uh you know valuation and that that uh you know valuation and that that uh you know valuation and that number number number >> right >> right >> right >> so basically just with that waterfall >> so basically just with that waterfall >> so basically just with that waterfall analysis and and cap table you can show analysis and and cap table you can show analysis and and cap table you can show where you are going and with the pitch where you are going and with the pitch where you are going and with the pitch deck you can show how you're going to deck you can show how you're going to deck you can show how you're going to get there, get there, get there, >> right? And and bringing it back to >> right? And and bringing it back to >> right? And and bringing it back to storytelling, right? How how important storytelling, right? How how important storytelling, right? How how important it is to be able to to paint the story it is to be able to to paint the story it is to be able to to paint the story >> through everything that you're putting >> through everything that you're putting >> through everything that you're putting in front of the people that are looking in front of the people that are looking in front of the people that are looking at it. at it. at it. >> Absolutely. >> Absolutely. >> Absolutely. >> And that's where the storytelling >> And that's where the storytelling >> And that's where the storytelling becomes your pitch, becomes your pitch, becomes your pitch, >> right? You're not pitching anymore. >> right? You're not pitching anymore. >> right? You're not pitching anymore. You're telling a compelling story backed You're telling a compelling story backed You're telling a compelling story backed by facts and numbers, by facts and numbers, by facts and numbers, >> right? >> right? >> right? This is like where a lot of people This is like where a lot of people This is like where a lot of people uh uh uh get into trouble because now they have a get into trouble because now they have a get into trouble because now they have a pitch deck that is not connected to the pitch deck that is not connected to the pitch deck that is not connected to the stories, not connected to the numbers.

stories, not connected to the numbers. stories, not connected to the numbers. So when you build a pitch deck, don't So when you build a pitch deck, don't So when you build a pitch deck, don't build it from what investors wanted to build it from what investors wanted to build it from what investors wanted to see. Build it from what I'm going to do, see. Build it from what I'm going to do, see. Build it from what I'm going to do, what is my vision, right? And this is what is my vision, right? And this is what is my vision, right? And this is like three simple steps. Where I'm like three simple steps. Where I'm like three simple steps. Where I'm going, how I'm going to get there, what going, how I'm going to get there, what going, how I'm going to get there, what is in there for other people. Just just is in there for other people. Just just is in there for other people. Just just think about partners, investors, think about partners, investors, think about partners, investors, customers. customers. customers. >> If I'm a customer, >> If I'm a customer, >> If I'm a customer, my vision is to um or this company's my vision is to um or this company's my vision is to um or this company's vision is to make my life easier um you vision is to make my life easier um you vision is to make my life easier um you know, going from point A to B if I want know, going from point A to B if I want know, going from point A to B if I want to get it right. to get it right. to get it right. Right. And then they so and if I'm a Right. And then they so and if I'm a Right. And then they so and if I'm a investor so so how how are you going to investor so so how how are you going to investor so so how how are you going to do it? Oh we're going to do like a build do it? Oh we're going to do like a build do it? Oh we're going to do like a build a right share new category. That's a new a right share new category. That's a new a right share new category. That's a new category. So what is in there for me as category. So what is in there for me as category. So what is in there for me as an investor? So if if you work with us an investor? So if if you work with us an investor? So if if you work with us we know it's a $3 billion exit. This is we know it's a $3 billion exit. This is we know it's a $3 billion exit. This is your big payday when we go public.

your big payday when we go public. your big payday when we go public. It just all comes together, right? It just all comes together, right? It just all comes together, right? >> Yeah. How much just one last question >> Yeah. How much just one last question >> Yeah. How much just one last question for me and then we're going to take it for me and then we're going to take it for me and then we're going to take it over to the studio audience. So get over to the studio audience. So get over to the studio audience. So get ready for questions studio audience. Um ready for questions studio audience. Um ready for questions studio audience. Um how much is like marketing looked at um how much is like marketing looked at um how much is like marketing looked at um like if you're if you're creating media like if you're if you're creating media like if you're if you're creating media if you're creating um ads or if you're if you're creating um ads or if you're if you're creating um ads or if you're creating any type of um marketing is creating any type of um marketing is creating any type of um marketing is that considered is that that considered is that that considered is that >> oh yeah absolutely >> oh yeah absolutely >> oh yeah absolutely because that's the story. marketing that because that's the story. marketing that because that's the story. marketing that is based on the storytelling. Right. is based on the storytelling. Right. is based on the storytelling. Right. >> Right. and and we have our friend >> Right. and and we have our friend >> Right. and and we have our friend >> Kri Kri here you know he can't really uh >> Kri Kri here you know he can't really uh >> Kri Kri here you know he can't really uh emphasize on the the importance of a emphasize on the the importance of a emphasize on the the importance of a storytelling storytelling storytelling >> and it's important to tell it from the >> and it's important to tell it from the >> and it's important to tell it from the perspective of the customer right uh perspective of the customer right uh perspective of the customer right uh because we need to show how we as a because we need to show how we as a because we need to show how we as a brand as a company are going to guide brand as a company are going to guide brand as a company are going to guide and help our investors customers and and help our investors customers and and help our investors customers and everybody else is not about how awesome everybody else is not about how awesome everybody else is not about how awesome and good we are is how we can help them and good we are is how we can help them and good we are is how we can help them to achieve what they wanted to do. For to achieve what they wanted to do. For to achieve what they wanted to do. For investors is bigger multiplier and investors is bigger multiplier and investors is bigger multiplier and return on investment.

return on investment. return on investment. >> Right. >> Right. >> Right. >> Right. >> Right. >> Right. >> So as an investor I I always think if I >> So as an investor I I always think if I >> So as an investor I I always think if I invest in real estate, if I invest in invest in real estate, if I invest in invest in real estate, if I invest in the other startups, what is my, you the other startups, what is my, you the other startups, what is my, you know, return on investment uh instead of know, return on investment uh instead of know, return on investment uh instead of investing in the company that is investing in the company that is investing in the company that is pitching to me, pitching to me, pitching to me, >> right? >> right? >> right? >> You should always keep that in mind, >> You should always keep that in mind, >> You should always keep that in mind, >> right? Wonderful. Um well, thank you. >> right? Wonderful. Um well, thank you. >> right? Wonderful. Um well, thank you. That was a lot of information. That was a lot of information. That was a lot of information. >> Yeah, [laughter] >> Yeah, [laughter] >> Yeah, [laughter] >> we don't want to, you know, get into >> we don't want to, you know, get into >> we don't want to, you know, get into technicality of this uh because it's technicality of this uh because it's technicality of this uh because it's very technical. Just like I said, you very technical. Just like I said, you very technical. Just like I said, you know, uh MBAs from like top universities know, uh MBAs from like top universities know, uh MBAs from like top universities working for VCs, working for VCs, working for VCs, >> right? >> right? >> right? >> But I think every founder should really >> But I think every founder should really >> But I think every founder should really know what actually is happening behind know what actually is happening behind know what actually is happening behind the scene. the scene. the scene. >> Uh so they can get prepared uh to >> Uh so they can get prepared uh to >> Uh so they can get prepared uh to present it in the best way that they present it in the best way that they present it in the best way that they can. can. can. >> Right. I mean, you have to get >> Right. I mean, you have to get >> Right. I mean, you have to get technical. technical. technical. >> Yeah. Yeah. At some point, you have to, >> Yeah. Yeah. At some point, you have to, >> Yeah. Yeah. At some point, you have to, right? right? right? >> You have to. Yeah. You can't I mean, >> You have to. Yeah. You can't I mean, >> You have to. Yeah. You can't I mean, there's there's so much like I've heard there's there's so much like I've heard there's there's so much like I've heard just this week a lot of founders be just this week a lot of founders be just this week a lot of founders be like, I'm just so focused on building like, I'm just so focused on building like, I'm just so focused on building what I'm building what I'm building what I'm building >> that all of this other all of these >> that all of this other all of these >> that all of this other all of these other things that are part of the due other things that are part of the due other things that are part of the due diligence kind of go to the wayside diligence kind of go to the wayside diligence kind of go to the wayside >> and when it comes time to to pitch or to >> and when it comes time to to pitch or to >> and when it comes time to to pitch or to find an investor, you have to scramble find an investor, you have to scramble find an investor, you have to scramble to get everything together. Um, so it's to get everything together. Um, so it's to get everything together. Um, so it's good to be able to prepare that like good to be able to prepare that like good to be able to prepare that like like Julie was saying last week, right?

like Julie was saying last week, right? like Julie was saying last week, right? From day one, all of the things that you From day one, all of the things that you From day one, all of the things that you need to have and you need to like make need to have and you need to like make need to have and you need to like make sure you're capturing your numbers, sure you're capturing your numbers, sure you're capturing your numbers, you're capturing all these things that you're capturing all these things that you're capturing all these things that >> that you're going to have to present and >> that you're going to have to present and >> that you're going to have to present and that you're building your story. that you're building your story. that you're building your story. >> Exactly. And exactly I just wanted to >> Exactly. And exactly I just wanted to >> Exactly. And exactly I just wanted to mention like what Julie said is the mention like what Julie said is the mention like what Julie said is the basics of uh prepare preparing to get basics of uh prepare preparing to get basics of uh prepare preparing to get acquired or selling uh stock and shares acquired or selling uh stock and shares acquired or selling uh stock and shares uh in your company to others. It doesn't uh in your company to others. It doesn't uh in your company to others. It doesn't matter if somebody's buying a fraction matter if somebody's buying a fraction matter if somebody's buying a fraction of your company or the whole thing. of your company or the whole thing. of your company or the whole thing. >> Right. >> Right. >> Right. >> Right. The the principles are the same. >> Right. The the principles are the same. >> Right. The the principles are the same. So, if somebody if if you haven't seen So, if somebody if if you haven't seen So, if somebody if if you haven't seen the the the episode with Judy, just go the the the episode with Judy, just go the the the episode with Judy, just go look at it. It's on it's on the YouTube. look at it. It's on it's on the YouTube. look at it. It's on it's on the YouTube. >> She explained everything that you need >> She explained everything that you need >> She explained everything that you need to get prepared either to get acquired to get prepared either to get acquired to get prepared either to get acquired or, you know, receive investment, or, you know, receive investment, or, you know, receive investment, >> right? >> right? >> right? >> And and it's very comprehensive. >> And and it's very comprehensive. >> And and it's very comprehensive. [laughter] [laughter] [laughter] >> Yeah. Yeah. I love how these are like >> Yeah. Yeah. I love how these are like >> Yeah. Yeah. I love how these are like mini courses. mini courses. mini courses. >> Yeah. >> Yeah. >> Yeah. >> Um Okay, we're gonna take it over to our >> Um Okay, we're gonna take it over to our >> Um Okay, we're gonna take it over to our studio audience. Um, studio audience. Um, studio audience. Um, let's first shout out to where we are.

let's first shout out to where we are. let's first shout out to where we are. Shout out to 801 Travis. Shout out to Shout out to 801 Travis. Shout out to Shout out to 801 Travis. Shout out to the innovation hub. Um, and our sponsors the innovation hub. Um, and our sponsors the innovation hub. Um, and our sponsors and our supporters. Um, if you do have a and our supporters. Um, if you do have a and our supporters. Um, if you do have a question, we have the mic on the stool question, we have the mic on the stool question, we have the mic on the stool there and then we ask you to come up to there and then we ask you to come up to there and then we ask you to come up to the purple circle. Um, don't be afraid. the purple circle. Um, don't be afraid. the purple circle. Um, don't be afraid. Don't all step up at once. >> Um, >> Um, >> you have to tell us who you are and what >> you have to tell us who you are and what >> you have to tell us who you are and what you're doing. you're doing. you're doing. >> Yeah, I'll make it quick. So, my name is >> Yeah, I'll make it quick. So, my name is >> Yeah, I'll make it quick. So, my name is Jose Bankoli. I'm the founder of Jose Bankoli. I'm the founder of Jose Bankoli. I'm the founder of Nextshift IQ, a career intelligence Nextshift IQ, a career intelligence Nextshift IQ, a career intelligence platform. I had a quick question. Uh, platform. I had a quick question. Uh, platform. I had a quick question. Uh, uh, most likely for Ben. you mentioned uh, most likely for Ben. you mentioned uh, most likely for Ben. you mentioned about um your what you put on your about um your what you put on your about um your what you put on your website has to match what's on your website has to match what's on your website has to match what's on your documentation. In some scenarios, you documentation. In some scenarios, you documentation. In some scenarios, you may not want to put what you do on your may not want to put what you do on your may not want to put what you do on your website, right? Like in scenarios where website, right? Like in scenarios where website, right? Like in scenarios where you're if it's a private uh uh maybe you're if it's a private uh uh maybe you're if it's a private uh uh maybe you're you're helping out high income you're you're helping out high income you're you're helping out high income family or if it's security involved family or if it's security involved family or if it's security involved where you don't want to put the exact where you don't want to put the exact where you don't want to put the exact nature of your business out there on nature of your business out there on nature of your business out there on your website. In those scenarios, are your website. In those scenarios, are your website. In those scenarios, are there excusable reasons to not have your there excusable reasons to not have your there excusable reasons to not have your your ICP or your business information on your ICP or your business information on your ICP or your business information on your website and would investors your website and would investors your website and would investors actually take that into account?

actually take that into account? actually take that into account? Does that make sense? Does that make sense? Does that make sense? >> Yeah. Yeah. So you know like >> Yeah. Yeah. So you know like >> Yeah. Yeah. So you know like one thing you need to consider is what one thing you need to consider is what one thing you need to consider is what is the secret sauce of your business and is the secret sauce of your business and is the secret sauce of your business and what are the sensitive information that what are the sensitive information that what are the sensitive information that you don't want to disclose to public uh you don't want to disclose to public uh you don't want to disclose to public uh and you wanted to disclose it in a safe and you wanted to disclose it in a safe and you wanted to disclose it in a safe environment which you sign NDAs and you environment which you sign NDAs and you environment which you sign NDAs and you just have like disclose it in a smaller just have like disclose it in a smaller just have like disclose it in a smaller group but is important to complete to to group but is important to complete to to group but is important to complete to to be transparent and communicate that. So be transparent and communicate that. So be transparent and communicate that. So in your uh deck because when you send in your uh deck because when you send in your uh deck because when you send the deck just just make sure if you're the deck just just make sure if you're the deck just just make sure if you're sending the deck no VC is going to sign sending the deck no VC is going to sign sending the deck no VC is going to sign the uh NDA with you because they don't the uh NDA with you because they don't the uh NDA with you because they don't want it to get into you know conflict of want it to get into you know conflict of want it to get into you know conflict of interest situation. But when you when interest situation. But when you when interest situation. But when you when you have your uh deck, you can disclose you have your uh deck, you can disclose you have your uh deck, you can disclose that there are other ICPS uh that we are that there are other ICPS uh that we are that there are other ICPS uh that we are not disclosing uh publicly. But if you not disclosing uh publicly. But if you not disclosing uh publicly. But if you would like to learn more about, we can would like to learn more about, we can would like to learn more about, we can sign uh this non-disclosure agreements sign uh this non-disclosure agreements sign uh this non-disclosure agreements for later due diligence if you would for later due diligence if you would for later due diligence if you would like to uh move forward with this like to uh move forward with this like to uh move forward with this opportunity. But at the same time, this opportunity. But at the same time, this opportunity. But at the same time, this is your marketing uh chance. You are is your marketing uh chance. You are is your marketing uh chance. You are just marketing yourself to VCs. And if just marketing yourself to VCs. And if just marketing yourself to VCs. And if that ICP is the main ICP that you wanted that ICP is the main ICP that you wanted that ICP is the main ICP that you wanted to sell to a VC, you need to keep in to sell to a VC, you need to keep in to sell to a VC, you need to keep in mind by excluding them by providing less mind by excluding them by providing less mind by excluding them by providing less information, you're lowering your information, you're lowering your information, you're lowering your chance. So kind of that's that's that's chance. So kind of that's that's that's chance. So kind of that's that's that's the whole problem with if if you have the whole problem with if if you have the whole problem with if if you have something that is a secret sauce and you

something that is a secret sauce and you something that is a secret sauce and you cannot disclose it, then you're lowering cannot disclose it, then you're lowering cannot disclose it, then you're lowering your chance because that's your biggest your chance because that's your biggest your chance because that's your biggest market that you're going after, market that you're going after, market that you're going after, >> right? >> right? >> right? >> Thank you. Yeah, absolutely. >> Thank you. Yeah, absolutely. >> Thank you. Yeah, absolutely. >> We have another question. >> Just a second. We're having some >> Just a second. We're having some technical difficulties. technical difficulties. technical difficulties. >> Yeah. And you know this is you know this >> Yeah. And you know this is you know this >> Yeah. And you know this is you know this this was an excellent question because this was an excellent question because this was an excellent question because always you need to consult again with um always you need to consult again with um always you need to consult again with um with a legal um with the legal uh with a legal um with the legal uh with a legal um with the legal uh council council council uh and get advice on what you can uh uh and get advice on what you can uh uh and get advice on what you can uh actually share and what you cannot and actually share and what you cannot and actually share and what you cannot and how you can share that information in a how you can share that information in a how you can share that information in a way that is safe to share. way that is safe to share. way that is safe to share. >> Right. Uh but if you in your pitch if >> Right. Uh but if you in your pitch if >> Right. Uh but if you in your pitch if you just disclose that and you ask like you just disclose that and you ask like you just disclose that and you ask like if you need more information uh we are if you need more information uh we are if you need more information uh we are more than happy to have uh private more than happy to have uh private more than happy to have uh private conversations. conversations. conversations. Sometimes you have uh information that Sometimes you have uh information that Sometimes you have uh information that you don't want to share with public. So you don't want to share with public. So you don't want to share with public. So that's you know uh you just disclose it that's you know uh you just disclose it that's you know uh you just disclose it and you have private conversations.

>> Yep. Absolutely. Um >> Yep. Absolutely. Um the the it's it's fortunate and the the it's it's fortunate and the the it's it's fortunate and unfortunate but a lot of times VCs are unfortunate but a lot of times VCs are unfortunate but a lot of times VCs are excited about people that they are kind excited about people that they are kind excited about people that they are kind of like genius you know like people that of like genius you know like people that of like genius you know like people that coming out of universities people that coming out of universities people that coming out of universities people that have like a talent people that have have like a talent people that have have like a talent people that have invented something invented something invented something u and they have this passion to move it u and they have this passion to move it u and they have this passion to move it forward uh most importantly if if they forward uh most importantly if if they forward uh most importantly if if they are consistent. are consistent. are consistent. So if you're somebody that you're so uh So if you're somebody that you're so uh So if you're somebody that you're so uh uh smart and you're so uh talented, you uh smart and you're so uh talented, you uh smart and you're so uh talented, you have this passion to move your idea have this passion to move your idea have this passion to move your idea forward and you are coachable that you forward and you are coachable that you forward and you are coachable that you wanted to listen and you know pivot and wanted to listen and you know pivot and wanted to listen and you know pivot and change direction and go find something change direction and go find something change direction and go find something at the edge of innovation at the edge of at the edge of innovation at the edge of at the edge of innovation at the edge of building something that dreams somebody building something that dreams somebody building something that dreams somebody that dreams really big and has like a that dreams really big and has like a that dreams really big and has like a wide imagination like a Steve Jobs. wide imagination like a Steve Jobs. wide imagination like a Steve Jobs. you know, someone with charisma, like you know, someone with charisma, like you know, someone with charisma, like someone that can see things other people someone that can see things other people someone that can see things other people can't.

can't. can't. >> And and the personality again, you know, >> And and the personality again, you know, >> And and the personality again, you know, it's like a marriage. If I look at it's like a marriage. If I look at it's like a marriage. If I look at somebody and that person is really somebody and that person is really somebody and that person is really difficult to work with and that person difficult to work with and that person difficult to work with and that person is either highway or is my way, that's is either highway or is my way, that's is either highway or is my way, that's like less likely you work with, you like less likely you work with, you like less likely you work with, you know, that type of people. know, that type of people. know, that type of people. You look for genuine, kind, but at the You look for genuine, kind, but at the You look for genuine, kind, but at the same time uh really firm and um talented same time uh really firm and um talented same time uh really firm and um talented people. people. people. >> Yeah. I've heard of the importance of >> Yeah. I've heard of the importance of >> Yeah. I've heard of the importance of the why, the why, the why, >> right? >> right? >> right? >> The purpose >> The purpose >> The purpose >> have they have a very strong why and >> have they have a very strong why and >> have they have a very strong why and your why can your your what or no your your why can your your what or no your your why can your your what or no your how can shift. how can shift. how can shift. >> Yeah. And it's just a fire. >> Yeah. And it's just a fire. >> Yeah. And it's just a fire. >> You have this fire. You wanted to help >> You have this fire. You wanted to help >> You have this fire. You wanted to help >> uh you know you wanted to help children. >> uh you know you wanted to help children. >> uh you know you wanted to help children. You want to help housing, you want to You want to help housing, you want to You want to help housing, you want to help uh you know the water issue and you help uh you know the water issue and you help uh you know the water issue and you have this passion for a bigger cause. have this passion for a bigger cause. have this passion for a bigger cause. Uh and this this and so you know there Uh and this this and so you know there Uh and this this and so you know there there's a concept of entrepreneur and there's a concept of entrepreneur and there's a concept of entrepreneur and residence which VCs go and look for residence which VCs go and look for residence which VCs go and look for people that are really highly talented people that are really highly talented people that are really highly talented and they are like geniuses from like and they are like geniuses from like and they are like geniuses from like again sometimes it's unfair but good again sometimes it's unfair but good again sometimes it's unfair but good universities.

universities. universities. So they even pay them to go and fidget So they even pay them to go and fidget So they even pay them to go and fidget with new ideas and if they find a good with new ideas and if they find a good with new ideas and if they find a good idea they fund them and even sometimes idea they fund them and even sometimes idea they fund them and even sometimes the LPs the limited partners people like the LPs the limited partners people like the LPs the limited partners people like Peter Teals they just provide idea to Peter Teals they just provide idea to Peter Teals they just provide idea to them and say look go and see if you can them and say look go and see if you can them and say look go and see if you can build this idea. build this idea. build this idea. >> That's >> That's >> That's >> but you know >> but you know >> but you know sometimes this model the the the issue sometimes this model the the the issue sometimes this model the the the issue with this model is so how about the rest with this model is so how about the rest with this model is so how about the rest of the people right? uh it you know of the people right? uh it you know of the people right? uh it you know everybody to in my my mind everybody is everybody to in my my mind everybody is everybody to in my my mind everybody is a genius in in their own way a genius in in their own way a genius in in their own way >> right >> right >> right >> so it's not like you shouldn't be like a >> so it's not like you shouldn't be like a >> so it's not like you shouldn't be like a graduate from a top university to be a graduate from a top university to be a graduate from a top university to be a genius genius genius >> right and and the people that are doing >> right and and the people that are doing >> right and and the people that are doing the community work you know the people the community work you know the people the community work you know the people that are already that are already that are already >> um building things and moving people and >> um building things and moving people and >> um building things and moving people and and keeping communities together that and keeping communities together that and keeping communities together that >> go under the radar and like because they >> go under the radar and like because they >> go under the radar and like because they don't even feel that they can get to don't even feel that they can get to don't even feel that they can get to that scale they don't even it's not even that scale they don't even it's not even that scale they don't even it's not even about the money right about the money right about the money right >> right the passion and compassion I think >> right the passion and compassion I think >> right the passion and compassion I think uh those are important it in like in our uh those are important it in like in our uh those are important it in like in our fund we look at the purpose we look at fund we look at the purpose we look at fund we look at the purpose we look at the passion we look at how this solution the passion we look at how this solution the passion we look at how this solution is helping the entire community the the is helping the entire community the the is helping the entire community the the human uh beings and our future right of human uh beings and our future right of human uh beings and our future right of course it should be a money-making course it should be a money-making course it should be a money-making opportunity opportunity opportunity But But But if you can serve and if you can make if you can serve and if you can make if you can serve and if you can make impact, that's that's I think even more

impact, that's that's I think even more impact, that's that's I think even more important. important. important. >> Yeah, that's idea. Do we have one more >> Yeah, that's idea. Do we have one more >> Yeah, that's idea. Do we have one more question? >> Thank you for the great questions >> Thank you for the great questions everybody. everybody. everybody. >> Hello, my name is Hamid and I'm a >> Hello, my name is Hamid and I'm a >> Hello, my name is Hamid and I'm a co-founder of Jasbai and founder of the co-founder of Jasbai and founder of the co-founder of Jasbai and founder of the matchwatch us. I have a question from matchwatch us. I have a question from matchwatch us. I have a question from Ben. uh you know two two weeks ago there Ben. uh you know two two weeks ago there Ben. uh you know two two weeks ago there was a first uh you know uh innovation was a first uh you know uh innovation was a first uh you know uh innovation center show about uh you know uh Joy was center show about uh you know uh Joy was center show about uh you know uh Joy was talking about how a startup can go to talking about how a startup can go to talking about how a startup can go to the market and how they can you know he the market and how they can you know he the market and how they can you know he mentioned something about the uh as a mentioned something about the uh as a mentioned something about the uh as a some of the startup need to pay some of the startup need to pay some of the startup need to pay attention to the fundraising not only in attention to the fundraising not only in attention to the fundraising not only in production he said that 50% production he said that 50% production he said that 50% production uh side and uh you need to production uh side and uh you need to production uh side and uh you need to allocate your time and energy and other allocate your time and energy and other allocate your time and energy and other hand you need to uh put 5000 uh 50% for hand you need to uh put 5000 uh 50% for hand you need to uh put 5000 uh 50% for the raising uh what I'm seeing in the the raising uh what I'm seeing in the the raising uh what I'm seeing in the ecosystem of a startup that you know ecosystem of a startup that you know ecosystem of a startup that you know there is a a gap missing for the startup there is a a gap missing for the startup there is a a gap missing for the startup that mostly saturated with the that mostly saturated with the that mostly saturated with the production and they're missing that part production and they're missing that part production and they're missing that part you know for the connection to the VC you know for the connection to the VC you know for the connection to the VC angel investor especially in Houston angel investor especially in Houston angel investor especially in Houston area you know maybe in Silicon Valley or area you know maybe in Silicon Valley or area you know maybe in Silicon Valley or Austin It's you couldn't see this kind Austin It's you couldn't see this kind Austin It's you couldn't see this kind of gap. There is a for example in a of gap. There is a for example in a of gap. There is a for example in a Austin capital factory you can go pitch Austin capital factory you can go pitch Austin capital factory you can go pitch and you know provide all of me you thing and you know provide all of me you thing and you know provide all of me you thing that you mentioned about the deck or that you mentioned about the deck or that you mentioned about the deck or those kind of the thing uh how can you

those kind of the thing uh how can you those kind of the thing uh how can you know for the timing especially how the know for the timing especially how the know for the timing especially how the startup you know uh people uh founder startup you know uh people uh founder startup you know uh people uh founder co-founder or those people in this co-founder or those people in this co-founder or those people in this ecosystem can connected to the VC in the ecosystem can connected to the VC in the ecosystem can connected to the VC in the you know seamless way that they can you you know seamless way that they can you you know seamless way that they can you of fill that gap and go to the market, of fill that gap and go to the market, of fill that gap and go to the market, you know. you know. you know. >> Yeah, thank you. That's a great question >> Yeah, thank you. That's a great question >> Yeah, thank you. That's a great question and that's that's the problem we all see and that's that's the problem we all see and that's that's the problem we all see in Houston startup in ecosystem. It's in Houston startup in ecosystem. It's in Houston startup in ecosystem. It's not just Houston like there are many not just Houston like there are many not just Houston like there are many other cities. The problem is the the other cities. The problem is the the other cities. The problem is the the ecosystem is not built around the ecosystem is not built around the ecosystem is not built around the founder and the founder is super busy founder and the founder is super busy founder and the founder is super busy chasing people chasing money and also chasing people chasing money and also chasing people chasing money and also building stuff building stuff building stuff >> right so you need to spend like Julie >> right so you need to spend like Julie >> right so you need to spend like Julie said like 50% you need to build 50% you said like 50% you need to build 50% you said like 50% you need to build 50% you need to raise need to raise need to raise >> and we have all these programs we have >> and we have all these programs we have >> and we have all these programs we have all this acceleration incubation program all this acceleration incubation program all this acceleration incubation program but if you think about it when you go to but if you think about it when you go to but if you think about it when you go to the acceleration incubation program. It the acceleration incubation program. It the acceleration incubation program. It will add to your uh you know daily will add to your uh you know daily will add to your uh you know daily things and and tasks rather than taking things and and tasks rather than taking things and and tasks rather than taking any off your shoulders.

any off your shoulders. any off your shoulders. >> Um >> Um >> Um to fill that gap uh they filled it in to fill that gap uh they filled it in to fill that gap uh they filled it in Austin with Capital Factory in Bay Area. Austin with Capital Factory in Bay Area. Austin with Capital Factory in Bay Area. It's just a different environment. It's just a different environment. It's just a different environment. Uh we are building the ecosystem which Uh we are building the ecosystem which Uh we are building the ecosystem which is founder centered. is founder centered. is founder centered. What it means is when you join the What it means is when you join the What it means is when you join the ecosystem, when you are in the ecosystem, when you are in the ecosystem, when you are in the ecosystem, people help you to do some of ecosystem, people help you to do some of ecosystem, people help you to do some of this stuff without chasing people. this stuff without chasing people. this stuff without chasing people. >> The whole thing is you need to know >> The whole thing is you need to know >> The whole thing is you need to know where you are today, what you need, and where you are today, what you need, and where you are today, what you need, and what are the people that you need to what are the people that you need to what are the people that you need to connect to and a way to connect to them. connect to and a way to connect to them. connect to and a way to connect to them. >> It's very important, you know, just join >> It's very important, you know, just join >> It's very important, you know, just join this accelerator. We have a network of this accelerator. We have a network of this accelerator. We have a network of people. That's good. But if you have 20 people. That's good. But if you have 20 people. That's good. But if you have 20 people that you know Hamid as a f people that you know Hamid as a f people that you know Hamid as a f founder can should go and monitor one by founder can should go and monitor one by founder can should go and monitor one by one contact them one by one create like one contact them one by one create like one contact them one by one create like a pitch deck one by one and present one a pitch deck one by one and present one a pitch deck one by one and present one by one it's like 20 people by one it's like 20 people by one it's like 20 people >> and he may customers you have to take >> and he may customers you have to take >> and he may customers you have to take care of care of care of >> you know and he has customers to take >> you know and he has customers to take >> you know and he has customers to take care and so all of that which that's the care and so all of that which that's the care and so all of that which that's the whole idea about ecosystem whole idea about ecosystem whole idea about ecosystem >> right >> right >> right >> that's the whole idea of us as people >> that's the whole idea of us as people >> that's the whole idea of us as people coming together and you know we are all coming together and you know we are all coming together and you know we are all everybody in this room we have had these everybody in this room we have had these everybody in this room we have had these conversations about how we can work conversations about how we can work conversations about how we can work together and build this ecosystem where together and build this ecosystem where together and build this ecosystem where uh each of us now connected to the right uh each of us now connected to the right uh each of us now connected to the right people people people >> uh at the right time

>> uh at the right time >> uh at the right time >> yeah we're doing office hours >> yeah we're doing office hours >> yeah we're doing office hours >> yeah we are doing office hours on >> yeah we are doing office hours on >> yeah we are doing office hours on Wednesdays Wednesdays Wednesdays >> and and yeah and we're doing even online >> and and yeah and we're doing even online >> and and yeah and we're doing even online and we're going to do like events like and we're going to do like events like and we're going to do like events like you know we want to do like a founder you know we want to do like a founder you know we want to do like a founder funer hangout which we bring founders funer hangout which we bring founders funer hangout which we bring founders and we bring uh investors and you know and we bring uh investors and you know and we bring uh investors and you know our fund is an emerging fund. Uh we're our fund is an emerging fund. Uh we're our fund is an emerging fund. Uh we're raising money raising money raising money >> and we are going to be uh the one that's >> and we are going to be uh the one that's >> and we are going to be uh the one that's you know going to have conversations you know going to have conversations you know going to have conversations with our startups and and if we don't with our startups and and if we don't with our startups and and if we don't have if even if we can't really write have if even if we can't really write have if even if we can't really write the big checks we can lead the round and the big checks we can lead the round and the big checks we can lead the round and we can go and we can find the right we can go and we can find the right we can go and we can find the right investor for the company. investor for the company. investor for the company. >> Right. and we can co-invest with them. >> Right. and we can co-invest with them. >> Right. and we can co-invest with them. So yeah to Amit's point the purpose of So yeah to Amit's point the purpose of So yeah to Amit's point the purpose of the ecosystem is just to build u a the ecosystem is just to build u a the ecosystem is just to build u a connected system that is focused on connected system that is focused on connected system that is focused on founder not founder focusing on chasing founder not founder focusing on chasing founder not founder focusing on chasing others others others >> right and also Houston centered like we >> right and also Houston centered like we >> right and also Houston centered like we are very focused on so at the innovation are very focused on so at the innovation are very focused on so at the innovation studio studio studio >> local you know it's just very important >> local you know it's just very important >> local you know it's just very important it addresses all Houston problems by it addresses all Houston problems by it addresses all Houston problems by Houston people Houston people Houston people >> building community of all the supporters >> building community of all the supporters >> building community of all the supporters from Houston to help.

from Houston to help. from Houston to help. >> Mhm. >> Mhm. >> Mhm. >> And we have seen that like you know a >> And we have seen that like you know a >> And we have seen that like you know a lot of people in this room are doing lot of people in this room are doing lot of people in this room are doing great job, excellent job uh contributing great job, excellent job uh contributing great job, excellent job uh contributing to this movement to this movement to this movement >> and and keeping companies here, right? >> and and keeping companies here, right? >> and and keeping companies here, right? Keeping startups here. So Keeping startups here. So Keeping startups here. So >> Oh yeah. you know, uh, Kitri and I, we >> Oh yeah. you know, uh, Kitri and I, we >> Oh yeah. you know, uh, Kitri and I, we had a conversation with an amazing had a conversation with an amazing had a conversation with an amazing startup. startup. startup. >> And he was like, I'm I'm I'm thinking >> And he was like, I'm I'm I'm thinking >> And he was like, I'm I'm I'm thinking about moving to Austin. about moving to Austin. about moving to Austin. >> Mhm. >> Mhm. >> Mhm. >> Which is really really upsetting because >> Which is really really upsetting because >> Which is really really upsetting because we have everything that a startup need we have everything that a startup need we have everything that a startup need to be in Houston, but he can't really to be in Houston, but he can't really to be in Houston, but he can't really access any of that. He doesn't even know access any of that. He doesn't even know access any of that. He doesn't even know about those resources are are here, are about those resources are are here, are about those resources are are here, are available. available. available. >> Right. Right. I think we have one more >> Right. Right. I think we have one more >> Right. Right. I think we have one more question. question. question. Uh I'll make it short. This question Uh I'll make it short. This question Uh I'll make it short. This question will be for both of you actually. It was will be for both of you actually. It was will be for both of you actually. It was at one point you'd mentioned that um a at one point you'd mentioned that um a at one point you'd mentioned that um a start for for VC it's easier when you start for for VC it's easier when you start for for VC it's easier when you have startup founders that are coachable have startup founders that are coachable have startup founders that are coachable or um amendable to advice right without or um amendable to advice right without or um amendable to advice right without being a pushover.

being a pushover. being a pushover. On the opposite end, I've met startup On the opposite end, I've met startup On the opposite end, I've met startup founders. The whole reason for h mean founders. The whole reason for h mean founders. The whole reason for h mean for being a founder is that you have a for being a founder is that you have a for being a founder is that you have a vision. You see something most others vision. You see something most others vision. You see something most others don't regarding a particular area. What don't regarding a particular area. What don't regarding a particular area. What do you see to those founders who what do do you see to those founders who what do do you see to those founders who what do you say to those founders who they you say to those founders who they you say to those founders who they believe so strongly in what they're believe so strongly in what they're believe so strongly in what they're saying but every the investors around saying but every the investors around saying but every the investors around them feel like why are you not changing them feel like why are you not changing them feel like why are you not changing like why can't you I' I've met some like why can't you I' I've met some like why can't you I' I've met some scenarios where you know you like scenarios where you know you like scenarios where you know you like counterparts will suggest to me that counterparts will suggest to me that counterparts will suggest to me that well I left that person because well I left that person because well I left that person because uh they either having anxieties about uh they either having anxieties about uh they either having anxieties about disclosing their uh important part about disclosing their uh important part about disclosing their uh important part about their businesses that just makes it their businesses that just makes it their businesses that just makes it harder to work with harder to work with harder to work with And from their perspective, it could And from their perspective, it could And from their perspective, it could just come from being jaded or being um just come from being jaded or being um just come from being jaded or being um having bad experience. So they stick to having bad experience. So they stick to having bad experience. So they stick to their guns and roses. What do you say to their guns and roses. What do you say to their guns and roses. What do you say to those founders to allow them kind of those founders to allow them kind of those founders to allow them kind of speak up a little bit or open up a speak up a little bit or open up a speak up a little bit or open up a little bit in terms of being able to little bit in terms of being able to little bit in terms of being able to receive feedback and make changes?

>> Um from a VC perspective, >> Um from a VC perspective, you don't need to change your vision you don't need to change your vision you don't need to change your vision because a VC doesn't understand it. that because a VC doesn't understand it. that because a VC doesn't understand it. that VC is not a good fit for you. VC is not a good fit for you. VC is not a good fit for you. Not only the VC, the mentor, the Not only the VC, the mentor, the Not only the VC, the mentor, the partner. If somebody doesn't understand partner. If somebody doesn't understand partner. If somebody doesn't understand your vision your vision your vision and they wanted to change it in a way and they wanted to change it in a way and they wanted to change it in a way that they can understand it, uh don't that they can understand it, uh don't that they can understand it, uh don't work with them. That's that's that's the work with them. That's that's that's the work with them. That's that's that's the the first thing. But you should master the first thing. But you should master the first thing. But you should master the art of communication and the art of communication and the art of communication and storytelling storytelling storytelling because you should be able to tell your because you should be able to tell your because you should be able to tell your story in a compelling way that they story in a compelling way that they story in a compelling way that they fully understand it. You know that's fully understand it. You know that's fully understand it. You know that's that's the job of every entrepreneur to that's the job of every entrepreneur to that's the job of every entrepreneur to paint that picture to paint that vision. paint that picture to paint that vision. paint that picture to paint that vision. You are responsible to paint that You are responsible to paint that You are responsible to paint that vision. But if you if you are telling vision. But if you if you are telling vision. But if you if you are telling your story and that's a test right put your story and that's a test right put your story and that's a test right put your story in test. go tell it to 20 your story in test. go tell it to 20 your story in test. go tell it to 20 people and if 18 said, "Oh, yeah, I people and if 18 said, "Oh, yeah, I people and if 18 said, "Oh, yeah, I understand it. That's a great idea, but understand it. That's a great idea, but understand it. That's a great idea, but how you're going to do it?" It means how you're going to do it?" It means how you're going to do it?" It means they understand what you want to do.

they understand what you want to do. they understand what you want to do. Now, the question is the how. Now, the question is the how. Now, the question is the how. >> But if you go to 20 people and just two >> But if you go to 20 people and just two >> But if you go to 20 people and just two of them say, you know, I barely got what of them say, you know, I barely got what of them say, you know, I barely got what you're saying, but I'm not sure what you're saying, but I'm not sure what you're saying, but I'm not sure what you're doing. Then you need to work on you're doing. Then you need to work on you're doing. Then you need to work on it. So [snorts] if you get that 18 it. So [snorts] if you get that 18 it. So [snorts] if you get that 18 people, you get that 90% rate of people people, you get that 90% rate of people people, you get that 90% rate of people understanding you and you go to a VC and understanding you and you go to a VC and understanding you and you go to a VC and that VC is an arrogant person says you that VC is an arrogant person says you that VC is an arrogant person says you know what I don't think is a good idea know what I don't think is a good idea know what I don't think is a good idea and you need to do so and so it it and you need to do so and so it it and you need to do so and so it it signals you that person is not a good signals you that person is not a good signals you that person is not a good fit for you because if u you know people fit for you because if u you know people fit for you because if u you know people that started Airbnb and Uber wanted to that started Airbnb and Uber wanted to that started Airbnb and Uber wanted to listen to others they wouldn't be able listen to others they wouldn't be able listen to others they wouldn't be able to create a new category. Right? or to create a new category. Right? or to create a new category. Right? or Steve Jobs got fired once because you Steve Jobs got fired once because you Steve Jobs got fired once because you know his vision was not the same as his know his vision was not the same as his know his vision was not the same as his board and when you know when he got back board and when you know when he got back board and when you know when he got back he was so charismatic and and good at he was so charismatic and and good at he was so charismatic and and good at conveying his vision everybody conveying his vision everybody conveying his vision everybody understood what an iPod is you know a understood what an iPod is you know a understood what an iPod is you know a thousand song in your pocket right look thousand song in your pocket right look thousand song in your pocket right look at how cosmetic it is was him and at how cosmetic it is was him and at how cosmetic it is was him and [snorts] how uh entertaining was him so [snorts] how uh entertaining was him so [snorts] how uh entertaining was him so that's kind of like and then uh so as a that's kind of like and then uh so as a that's kind of like and then uh so as a founder you should not you know uh you founder you should not you know uh you founder you should not you know uh you should not really change your vision should not really change your vision should not really change your vision because a VC doesn't understand you. Uh because a VC doesn't understand you. Uh because a VC doesn't understand you. Uh so that's that's the first thing being so that's that's the first thing being so that's that's the first thing being coachable doesn't mean that uh you know

coachable doesn't mean that uh you know coachable doesn't mean that uh you know you should not stand your grounds and you should not stand your grounds and you should not stand your grounds and you should not defend your vision. It you should not defend your vision. It you should not defend your vision. It means just being so stubborn and you means just being so stubborn and you means just being so stubborn and you know getting to argument every time know getting to argument every time know getting to argument every time somebody just criticize you. somebody just criticize you. somebody just criticize you. >> Yeah. I go back to the why and the how. >> Yeah. I go back to the why and the how. >> Yeah. I go back to the why and the how. >> Um and as long as you're sticking to >> Um and as long as you're sticking to >> Um and as long as you're sticking to your why, I mean and and listening to your why, I mean and and listening to your why, I mean and and listening to this the the signals in the market and this the the signals in the market and this the the signals in the market and listening to other signals, not just the listening to other signals, not just the listening to other signals, not just the investor, not just people that are investor, not just people that are investor, not just people that are mentoring you or advising you. um like mentoring you or advising you. um like mentoring you or advising you. um like really just paying attention to what's really just paying attention to what's really just paying attention to what's going on around you and maybe taking going on around you and maybe taking going on around you and maybe taking that with a grain of salt, what people that with a grain of salt, what people that with a grain of salt, what people are are telling you to do, but also are are telling you to do, but also are are telling you to do, but also checking in with your found your checking in with your found your checking in with your found your co-founders, checking in with your with co-founders, checking in with your with co-founders, checking in with your with your close people to to see what you your close people to to see what you your close people to to see what you actually need to change, I think is actually need to change, I think is actually need to change, I think is important. Um I go back to to dancing important. Um I go back to to dancing important. Um I go back to to dancing and how I'm a tango dancer and how I and how I'm a tango dancer and how I and how I'm a tango dancer and how I like you learn to pivot. You you learn like you learn to pivot. You you learn like you learn to pivot. You you learn to pivot all the time and you're always to pivot all the time and you're always to pivot all the time and you're always shifting and you're always changing. I shifting and you're always changing. I shifting and you're always changing. I think changes are only constant. Um, and think changes are only constant. Um, and think changes are only constant. Um, and you're as you're growing, you're going you're as you're growing, you're going you're as you're growing, you're going to have to continue to change and you're to have to continue to change and you're to have to continue to change and you're going to have to continue to pivot. Um, going to have to continue to pivot. Um, going to have to continue to pivot. Um, and I think just learning how to do that and I think just learning how to do that and I think just learning how to do that effectively while sticking to your why effectively while sticking to your why effectively while sticking to your why is really important. Um, and something is really important. Um, and something is really important. Um, and something that you'll that we have to continue to that you'll that we have to continue to that you'll that we have to continue to to do.

to do. to do. >> Um, but yeah, um, thank you all for your >> Um, but yeah, um, thank you all for your >> Um, but yeah, um, thank you all for your questions today. Uh, we are out of time. questions today. Uh, we are out of time. questions today. Uh, we are out of time. Uh, thank you Ben for this great Uh, thank you Ben for this great Uh, thank you Ben for this great conversation. I learned so much. I feel conversation. I learned so much. I feel conversation. I learned so much. I feel like my brain expanded [laughter] like my brain expanded [laughter] like my brain expanded [laughter] >> and you know like um hope it was helpful >> and you know like um hope it was helpful >> and you know like um hope it was helpful and it's important for founders to be and it's important for founders to be and it's important for founders to be able to see things from an investor able to see things from an investor able to see things from an investor perspective. perspective. perspective. Uh, and our goal is to bring people here Uh, and our goal is to bring people here Uh, and our goal is to bring people here that they they have expertise in in that they they have expertise in in that they they have expertise in in different um areas. So, different um areas. So, different um areas. So, >> next week we're going to have my friend >> next week we're going to have my friend >> next week we're going to have my friend Danielle joining us. Danielle joining us. Danielle joining us. >> Uh he's an expert in business. He's an >> Uh he's an expert in business. He's an >> Uh he's an expert in business. He's an expert in uh in in customer leadership expert in uh in in customer leadership expert in uh in in customer leadership and he's he's so good. He can sit with and he's he's so good. He can sit with and he's he's so good. He can sit with you in in 40 minutes, 30 minutes and you in in 40 minutes, 30 minutes and you in in 40 minutes, 30 minutes and tell you what's wrong with your tell you what's wrong with your tell you what's wrong with your business. It's very important uh to business. It's very important uh to business. It's very important uh to understand understand understand u how and where things are going to u how and where things are going to u how and where things are going to break in your business. So, we're going break in your business. So, we're going break in your business. So, we're going to have Daniel next week with us. It's to have Daniel next week with us. It's to have Daniel next week with us. It's going to be a great conversation going to be a great conversation going to be a great conversation >> and if you join us in the audience, I >> and if you join us in the audience, I >> and if you join us in the audience, I think it will be very fun if you have think it will be very fun if you have think it will be very fun if you have that conversation, you know, with that conversation, you know, with that conversation, you know, with people, you know, joining during the people, you know, joining during the people, you know, joining during the show and they, you know, uh share their show and they, you know, uh share their show and they, you know, uh share their ideas and and he can just uh uh ad hoc u ideas and and he can just uh uh ad hoc u ideas and and he can just uh uh ad hoc u you know, you know, you know, >> Yeah. interrogate somebody.

>> Yeah. interrogate somebody. >> Yeah. interrogate somebody. >> Interrogates them, right? >> Interrogates them, right? >> Interrogates them, right? >> Yeah. We we we want to do like a little >> Yeah. We we we want to do like a little >> Yeah. We we we want to do like a little mini interrogation. mini interrogation. mini interrogation. >> Yeah. And you know, we don't want to >> Yeah. And you know, we don't want to >> Yeah. And you know, we don't want to spoil it, but you know, He he has a spoil it, but you know, He he has a spoil it, but you know, He he has a background. So, it's going to be very background. So, it's going to be very background. So, it's going to be very interesting session. interesting session. interesting session. >> Uh well, thank you again everybody. Uh >> Uh well, thank you again everybody. Uh >> Uh well, thank you again everybody. Uh thank you to everybody that's here in thank you to everybody that's here in thank you to everybody that's here in person. We really appreciate you. Um person. We really appreciate you. Um person. We really appreciate you. Um thank you again to 801 Travis and the thank you again to 801 Travis and the thank you again to 801 Travis and the innovation hub and Iron Grove u for innovation hub and Iron Grove u for innovation hub and Iron Grove u for sponsoring and supporting us. Um, and sponsoring and supporting us. Um, and sponsoring and supporting us. Um, and we'll see you next week, uh, where we'll we'll see you next week, uh, where we'll we'll see you next week, uh, where we'll continue building Houston's innovation continue building Houston's innovation continue building Houston's innovation ecosystem, one conversation at a time. ecosystem, one conversation at a time. ecosystem, one conversation at a time. >> Awesome. Thank you. >> Awesome. Thank you. >> Awesome. Thank you. >> Bye.