VC fundraising.

A crucial way to rapidly expand your startup. The best VC relationships will elevate your startup to another level while poor ones can make your startup lame. This week on The Startup Podcast, Chris and Yaniv venture into the shadows of fundraising as founders expose harrowing tales of dealing with unscrupulous venture capitalists. 🕵️‍♂️

🤝 False Promises: Some VCs masquerade as venture studios, luring founders with promises of substantial support in exchange for hefty equity. In reality, founders are left to navigate the entrepreneurial journey alone.

🤐 Confidential Betrayal: Unethical practices emerge as certain VCs breach trust by sharing founders' confidential information with competitors, exploiting sensitive details for a competitive edge.

💸 Lowball Offers: Founders face the peril of VCs making undervalued offers, jeopardizing the startup's equity structure and hindering its path to success during critical funding rounds.

👻 Investor Ghosting: Post-investment, some VCs vanish, leaving founders in the lurch. While investor support is crucial, the absence of ongoing assistance can hinder a startup's growth.

⏳ Funding Delays: Founders experience intentional delays in funding after agreeing to term sheets, introducing pressure tactics or blocking potential competitors.

💰 Fee Excess: Unscrupulous VCs exploit founders by charging fees and claiming cuts from subsequent funding rounds, compromising equity in exchange for essential capital.

There’s a lot of horror stories out there. Don’t fret! Yaniv and Chris are here to help you through the process so you don’t have your own horror story. They explore how to get the best out of VC including:

🕵️‍♀️ Vetting Investors: Founders are reminded to meticulously vet potential investors, discern their priorities, and avoid falling prey to "innovation theater" or compromising their vision too quickly.

🚀 Clean Relationships: The essence of successful fundraising lies in forging transparent, straightforward relationships with investors who genuinely empower founders rather than exploiting them.

Explore the dark side of fundraising and glean insights on navigating the complex VC landscape. Watch the full episode for cautionary tales and strategic wisdom.

The Pact

Honour The Startup Podcast Pact! If you have listened to TSP and gotten value from it, please:
Follow, rate, and review us in your listening app
Subscribe to the TSP Mailing List to gain access to exclusive newsletter-only content and early-access to information on upcoming episodes: https://thestartuppodcast.beehiiv.com/subscribe
Secure your official TSP merchandise at https://shop.tsp.show/
Follow us on YouTube
Give us a public shout-out on LinkedIn or anywhere you have a social media following

Key links

The Startup Podcast is sponsored by Vanta. Vanta helps businesses get and stay compliant by automating up to 90% of the work for the most in demand compliance frameworks. With over 200 integrations, you can easily monitor and secure the tools your business relies on. Go to www.vanta.com/tsp for 20% off their incredible offer.
Follow us on YouTube for full-video episodes: https://www.youtube.com/channel/UCNjm1MTdjysRRV07fSf0yGg
Get your question in for our next Q&A episode: https://forms.gle/NZzgNWVLiFmwvFA2A
The Startup Podcast website: https://tsp.show

Learn more about Chris and Yaniv

Work 1:1 with Chris: http://chrissaad.com/advisory/
Follow Chris on Linkedin: https://www.linkedin.com/in/chrissaad/
Follow Yaniv on Linkedin: https://www.linkedin.com/in/ybernstein/

Credits

Lovingly handcrafted for the global startup community by:

Editor: Justin McArthur

Associate Producer: Aidan Cousins

Intro Voice: Jeremiah Owyang

Edu: VC Horror Stories - Critical Capital Catastrophes

The Startup Podcast