Field Advice from Investing in Early Uber and Stripe | Paul Bragiel

What steps can you take to get noticed by VCs?

Breaking into the world of venture capital, especially with a non-traditional background, may seem daunting, but it's far from impossible. Here are actionable steps to grab the attention of VCs:

• Attend Networking Events: Show up at industry meetups, conferences, and seminars. Engaging directly with founders and investors enhances your visibility.

• Build Projects: Focus on creating tangible projects during your weekends or nights. It's crucial to move from just talking to actually building. Successful founders like Paul Bragiel and many others did not follow traditional paths, but they kept building and showcasing their work.

• Be Persistent: Persistence is key. Keep refining your projects, show up consistently, and don't give up easily.

• Join a Community: Being part of a supportive community helps. Constantly offering help to others will establish your presence and create opportunities for reciprocal support.

Examples of founders who thrived without traditional resumes include those who focused on executing their vision rather than waiting for validation from elite institutions. By being present and actively involved in the startup ecosystem, you can increase your chances of attracting investors.

Why is building more important than talking?

Venture capitalists prefer builders over talkers. The reason is simple: execution speaks louder than words. According to Paul Bragiel, having a fancy resume or degrees from top universities means little if there's no action behind it.

"I know a lot of people that have great resumes. They don't do shit. They just sit there and think about how awesome they are," says Bragiel.

VCs want to see tangible results. They look for people who are constantly building and experimenting. Having projects to show demonstrates initiative and practical skills.

Moreover, action builds credibility. When you create something, you show your problem-solving abilities and commitment.

“The most important thing, just start building,” emphasizes Bragiel. “Keep on trying. Don’t give up.”

In the world of startups, it's the builders who make things happen. By continually producing and improving projects, you increase your chances of getting noticed. The journey may be tough, but persistence and proactive efforts are key to attracting investors.

How can you build a strong network without a traditional background?

Building a strong network without a traditional background is achievable with the right strategies. Here are some effective tips:

• Get Involved in Community Activities: Engage in local business meetups, join industry clubs, or participate in workshops. Being active in the community fosters connections and opens doors to opportunities.

• Help Others: Offer assistance and share your knowledge freely. Whether it's mentoring a budding entrepreneur or volunteering in a startup event, helping others creates reciprocal goodwill.

• Leverage Social Media: Utilize platforms like LinkedIn to connect with industry professionals. Share valuable content, comment on relevant posts, and engage in meaningful discussions. This helps in building your online presence and credibility.

• Be Supportive: Adopt a mindset of support and collaboration. As suggested in Field Advice from Paul Bragiel, more help you extend, the more you build trust and can expect support in return.

By integrating these strategies, anyone can develop a strong and supportive network that opens up remarkable opportunities.

What qualities do VCs look for in founders?

Venture capitalists seek specific qualities in founders that demonstrate their potential to succeed. These qualities help VCs assess whether the team can navigate challenges and create a valuable company.

Key Qualities:

• Transparency: Founders need to be open and honest about their progress and challenges. Transparency builds trust and fosters a collaborative relationship with investors.

• Confidence: Strong self-belief and the ability to project that confidence are crucial. Paul Bragiel mentions evaluating if he would want to work for the founder for five years, highlighting the importance of leadership and conviction.

• Problem-Solving Skills: Ability to tackle challenges creatively and efficiently is vital. VCs prefer founders who can navigate obstacles and pivot effectively when needed.

• Cohesive Team Dynamics: A team's ability to work together smoothly and complement each other's strengths is paramount. Cohesion ensures that the team is more than just the sum of its parts.

• Visionary Thinking: Founders must have a compelling vision for the future. This vision should be backed by a strategic plan that outlines the path to achieving long-term goals.

Bragiel often assesses founders through organic conversations, probing into their backgrounds and gauging their confidence and strength. If a founder can captivate and inspire him, it's a strong indication of their potential to attract others and lead a successful venture.

How important is market size and opportunity?

Venture capitalists consider market size and opportunity crucial for investment success. Investing in a large or rapidly growing market provides more room for error and potential profitability. Here's why:

• Risk Mitigation: A vast market can absorb mistakes and still offer profitable opportunities for founders and investors alike.
• Growth Potential: Large markets have unexplored segments. A startup capturing even a small portion can achieve significant success.
• New Markets: In some cases, technological advancements or societal shifts create brand-new markets. Founders can secure a first-mover advantage by pioneering these spaces.

Paul Bragiel notes the potential of markets evolving alongside entrepreneurs. Assessing whether a niche can become substantial due to changes is vital.

Understanding market dynamics is essential. For more insights on how startups can adapt to changing markets, check out our article on product-market fit.

Ultimately, VCs seek large-scale opportunities, ensuring that even with challenges, there’s a path to substantial returns.

What are common mistakes founders make when pitching to VCs?

Pitching to VCs can be daunting, and founders often stumble with avoidable mistakes. Here are common pitfalls:

• Being Too Robotic: Many founders stick rigidly to their pitch deck, making the presentation feel mechanical.

  Tip: Engage in an interactive conversation. Let the pitch flow naturally and allow room for questions.

• Focusing Too Much on the Product: Founders often dive deep into the features without explaining the problem their product solves.

  Tip: Emphasize the problem your solution tackles. Highlight user pain points and how your product addresses them. For more, check our article on startup ideas that solve real problems.

• Overloading with Technical Jargon: Using complex technical terms can confuse VCs rather than impress them.

  Tip: Simplify your language. Make sure your pitch is understandable even to someone with limited industry knowledge.

• Lacking a Clear Vision: Failing to convey a long-term vision and market opportunity can undermine your pitch.

  Tip: Clearly articulate your big-picture goals and explain the market potential, as Paul Bragiel advises.

By avoiding these mistakes, you can create a more compelling and engaging pitch that resonates with potential investors.