1 00:00:00,120 --> 00:00:03,880 Speaker 1: When I started raising money, I was doing everything wrong 2 00:00:07,160 --> 00:00:09,840 Speaker 1: and uh, like, one of the first rules that I 3 00:00:09,960 --> 00:00:14,720 Speaker 1: say in my book Fundraising is, uh, don't say you're fundraising. 4 00:00:15,760 --> 00:00:19,360 Speaker 1: As the second you say that you're fundraising and you're 5 00:00:19,440 --> 00:00:22,560 Speaker 1: on the clock, meaning people are gonna be like, all right, 6 00:00:22,560 --> 00:00:26,279 Speaker 1: well his round should blow up and be over soon. 7 00:00:26,840 --> 00:00:29,200 Speaker 1: Because if this is a hot company, I'm gonna have 8 00:00:29,200 --> 00:00:31,880 Speaker 1: a limited window. So if in two weeks your round 9 00:00:31,960 --> 00:00:35,680 Speaker 1: isn't done, people are gonna be like, why aren't others investing? 10 00:00:36,320 --> 00:00:39,600 Speaker 1: And so they're gonna, you know, they're gonna walk away. 11 00:00:40,040 --> 00:00:42,600 Speaker 1: And if you build up a bunch of no's around 12 00:00:42,640 --> 00:00:46,960 Speaker 1: your company people are not investing, then that's you know, 13 00:00:47,040 --> 00:00:49,800 Speaker 1: the network becomes aware that all these people didn't invest, 14 00:00:50,400 --> 00:00:53,760 Speaker 1: and you're kind of screwed. So, you know, one of 15 00:00:53,800 --> 00:00:57,080 Speaker 1: the first lessons that I learned from a great mentor 16 00:00:57,160 --> 00:01:02,240 Speaker 1: of mine, his name is Michael Cartery, as this company 17 00:01:02,280 --> 00:01:06,240 Speaker 1: play Co, very successful gaming company. He was giving some 18 00:01:06,280 --> 00:01:09,040 Speaker 1: talks on fundraising again he taught me this concept, just 19 00:01:09,080 --> 00:01:13,680 Speaker 1: don't say you're fundraising. Just go build relationships first, go 20 00:01:13,760 --> 00:01:16,880 Speaker 1: and meet investors and get them excited about who you 21 00:01:16,959 --> 00:01:20,800 Speaker 1: are as a person and casually get them excited about 22 00:01:20,800 --> 00:01:25,119 Speaker 1: your idea instead of going and saying I'm pitching you, 23 00:01:25,720 --> 00:01:29,280 Speaker 1: which automatically puts them on a pedestal versus you. Right, 24 00:01:29,360 --> 00:01:33,440 Speaker 1: you're not peers anymore. Now they're on a pedestal, and 25 00:01:33,520 --> 00:01:37,680 Speaker 1: so it sets the dynamics incorrectly from the beginning. You're 26 00:01:37,680 --> 00:01:42,360 Speaker 1: not building a relationship and you can get this domino 27 00:01:42,400 --> 00:01:46,000 Speaker 1: effect of nose which could really screw you before you 28 00:01:46,040 --> 00:01:49,520 Speaker 1: even begin. So I did that in the beginning. I 29 00:01:49,600 --> 00:01:53,120 Speaker 1: learned from those mistakes. I had some great mentors who 30 00:01:53,160 --> 00:01:55,320 Speaker 1: helped me reshape my fundraising strategy. 31 00:01:56,040 --> 00:01:59,680 Speaker 2: So you said something or say, when you said, if 32 00:01:59,680 --> 00:02:02,279 Speaker 2: you want money, ask for advice. If you want advice, 33 00:02:02,360 --> 00:02:06,520 Speaker 2: ask for money. Yep, that's that's how I said it correctly. Yeah, 34 00:02:06,680 --> 00:02:08,000 Speaker 2: so can you elaborate on that. 35 00:02:08,320 --> 00:02:13,200 Speaker 1: Yeah, it's a pretty common adage in Silicon Valley and 36 00:02:13,280 --> 00:02:17,680 Speaker 1: so I certainly didn't invent that. But uh, if you 37 00:02:17,760 --> 00:02:20,840 Speaker 1: go to someone and you say, hey, I want, you know, 38 00:02:20,960 --> 00:02:24,720 Speaker 1: to pitch you for funding, They're most likely going to 39 00:02:24,800 --> 00:02:27,760 Speaker 1: give you advice. It's gonna say, hey, you know, I'm 40 00:02:27,760 --> 00:02:29,560 Speaker 1: not able to fund you right now, but how about 41 00:02:29,560 --> 00:02:32,200 Speaker 1: I give you some advice Whereas if you go to 42 00:02:32,240 --> 00:02:39,320 Speaker 1: them and you show a genuine interest in their advice, uh, 43 00:02:39,840 --> 00:02:44,760 Speaker 1: but also potentially even more importantly, you really impress the 44 00:02:44,800 --> 00:02:48,840 Speaker 1: shit out of them with who you are. And that 45 00:02:48,880 --> 00:02:53,400 Speaker 1: person has money or is an investor, they are going 46 00:02:53,440 --> 00:02:55,400 Speaker 1: to organically want to invest in you. 47 00:02:56,960 --> 00:03:00,320 Speaker 2: So let's say I have a company and I'm trying 48 00:03:00,320 --> 00:03:02,919 Speaker 2: to raise money. I know a very wealthy guy. Instead 49 00:03:02,919 --> 00:03:04,960 Speaker 2: of saying, hey, do you want to you know, hand 50 00:03:05,040 --> 00:03:07,480 Speaker 2: my pitch to give me money to put my startup, 51 00:03:07,760 --> 00:03:09,880 Speaker 2: it will say, you know, I have this idea, da 52 00:03:09,960 --> 00:03:14,040 Speaker 2: da dad, and I really respect your your opinion. Would 53 00:03:14,040 --> 00:03:15,359 Speaker 2: you want to just hear about it just to kind 54 00:03:15,360 --> 00:03:17,080 Speaker 2: of give me some feedback on it. Then you just 55 00:03:17,120 --> 00:03:21,839 Speaker 2: do a really great job presenting it. And then they're like, damn, 56 00:03:21,880 --> 00:03:24,000 Speaker 2: I got to be involved in this situation, but you're not. 57 00:03:24,440 --> 00:03:28,840 Speaker 2: You don't look like you're so eager to just only 58 00:03:28,840 --> 00:03:31,600 Speaker 2: get their money. You really genuinely want their advice. But 59 00:03:31,639 --> 00:03:34,480 Speaker 2: then by you not wanting to take their money, they 60 00:03:34,480 --> 00:03:35,640 Speaker 2: want to give you money even more. 61 00:03:36,240 --> 00:03:40,200 Speaker 1: Exactly, this approaches a win win makes it more comfortable 62 00:03:40,240 --> 00:03:44,440 Speaker 1: for them, right because they don't like saying no to you. 63 00:03:44,880 --> 00:03:48,720 Speaker 1: It makes it more comfortable for you, because if if 64 00:03:48,760 --> 00:03:51,160 Speaker 1: you're doing a good job, they're gonna want invest. If 65 00:03:51,200 --> 00:03:54,920 Speaker 1: you're talking to an investor whose job it is to invest, 66 00:03:54,960 --> 00:03:58,000 Speaker 1: who invests, they need you just as much as you 67 00:03:58,040 --> 00:04:01,200 Speaker 1: need them. So if you're sitting in front of them 68 00:04:01,520 --> 00:04:05,880 Speaker 1: and they're like, oh shit, this dude is gonna fucking 69 00:04:06,000 --> 00:04:10,760 Speaker 1: kill it, they will proactively say how can I get involved? 70 00:04:13,600 --> 00:04:16,640 Speaker 1: And they're gonna be just as likely, if not more likely, 71 00:04:17,320 --> 00:04:20,239 Speaker 1: than if you came to them explicitly trying to pitch. 72 00:04:21,640 --> 00:04:24,440 Speaker 3: How intentional are you about it? Before you even go 73 00:04:24,600 --> 00:04:29,479 Speaker 3: to get the advice? Are you strategically targeting the people 74 00:04:29,520 --> 00:04:31,160 Speaker 3: that you want to get the advice from? Like, is 75 00:04:31,200 --> 00:04:34,000 Speaker 3: there a list? And it's like if I could meet 76 00:04:34,240 --> 00:04:36,680 Speaker 3: or get in front of this ten or twenty people 77 00:04:37,360 --> 00:04:39,880 Speaker 3: this month, that's my target. Like how did you go 78 00:04:39,920 --> 00:04:40,280 Speaker 3: about it? 79 00:04:41,360 --> 00:04:45,240 Speaker 1: Well, in the beginning, you know, beggars can't be choosers, right, 80 00:04:45,400 --> 00:04:48,400 Speaker 1: so you kind of will try to get meetings with 81 00:04:48,480 --> 00:04:51,440 Speaker 1: anyone who has money, right. I mean, now you can 82 00:04:51,480 --> 00:04:54,760 Speaker 1: be as you go later, Sage, you could be a 83 00:04:54,760 --> 00:04:57,240 Speaker 1: little more picky, and you should be picking. I mean, 84 00:04:57,240 --> 00:04:59,520 Speaker 1: you should try to avoid putting sharks on your cap 85 00:04:59,560 --> 00:05:02,480 Speaker 1: table who are at odds with you or who are 86 00:05:03,000 --> 00:05:07,480 Speaker 1: very short termistic and they're gonna create issues for you. 87 00:05:07,480 --> 00:05:11,320 Speaker 1: You should avoid those to the maximum extent possible. But 88 00:05:12,320 --> 00:05:18,360 Speaker 1: you know what I would do is I would try 89 00:05:18,360 --> 00:05:21,200 Speaker 1: to build my network in a very strategic way. So 90 00:05:21,720 --> 00:05:26,760 Speaker 1: I would host like happy hours or dinners. I'd do 91 00:05:26,839 --> 00:05:29,640 Speaker 1: this on a college budget. I mean I didn't spend 92 00:05:29,800 --> 00:05:32,960 Speaker 1: I spent minimal money on it. It's like a couple 93 00:05:33,120 --> 00:05:37,160 Speaker 1: hundred bucks that i'd throw together after a few this 94 00:05:37,279 --> 00:05:40,240 Speaker 1: VC would sponsor them, so they'd throw down three four 95 00:05:40,320 --> 00:05:43,919 Speaker 1: hundred bucks on these dinners right and be at my place. 96 00:05:44,080 --> 00:05:45,960 Speaker 1: Or you know, I didn't spend a lot of money, 97 00:05:46,200 --> 00:05:48,560 Speaker 1: and so I was building network. So first step is 98 00:05:48,560 --> 00:05:53,400 Speaker 1: build network. If people have interconnectivity to investors and play 99 00:05:53,440 --> 00:05:58,360 Speaker 1: the long game, build a relationship with these folks casually. 100 00:05:58,800 --> 00:06:02,080 Speaker 1: Make sure all these people in your network are impressed 101 00:06:02,080 --> 00:06:06,560 Speaker 1: by you, right casually, and then at some point you 102 00:06:06,600 --> 00:06:08,760 Speaker 1: can make the asks or you can say, hey, I 103 00:06:08,800 --> 00:06:11,680 Speaker 1: know this person invests in your company. I think they 104 00:06:11,720 --> 00:06:13,840 Speaker 1: have this relevant experience of what I'm doing. Do you 105 00:06:13,920 --> 00:06:18,800 Speaker 1: mind making the intro? And so you do that with 106 00:06:19,080 --> 00:06:22,880 Speaker 1: you know all founder friends. People will raise money before. 107 00:06:22,720 --> 00:06:25,120 Speaker 1: You're trying to build this network to cultivate and then 108 00:06:25,160 --> 00:06:29,520 Speaker 1: eventually make the ask for the introductions. And you know 109 00:06:29,560 --> 00:06:32,360 Speaker 1: you're just doing this on repeat as much as possible. 110 00:06:34,520 --> 00:06:36,960 Speaker 2: So you said something also where it's like you always 111 00:06:36,960 --> 00:06:38,400 Speaker 2: want to avoid trying and get it know. 112 00:06:39,160 --> 00:06:41,120 Speaker 1: Yes, you don't. You never want to get to know. 113 00:06:43,360 --> 00:06:46,760 Speaker 1: This is a little bit of the opposite advice that 114 00:06:46,839 --> 00:06:48,360 Speaker 1: some would give you. Oh you want to get to 115 00:06:48,400 --> 00:06:48,960 Speaker 1: know quickly. 116 00:06:49,080 --> 00:06:51,719 Speaker 2: Yeah, that's that's what I've heard. I need not know 117 00:06:52,600 --> 00:06:54,520 Speaker 2: because I come from sales. So that's what I heard 118 00:06:54,520 --> 00:06:57,920 Speaker 2: all the time, was like a no is always one 119 00:06:57,960 --> 00:07:00,200 Speaker 2: step quicker to a yes, or get to the know 120 00:07:00,320 --> 00:07:03,080 Speaker 2: early or stuff like. But so that's an interesting. 121 00:07:02,760 --> 00:07:05,880 Speaker 3: It even it feels contradictory. It's like it's because you're 122 00:07:05,920 --> 00:07:08,360 Speaker 3: going this is trial right, like you're saying it's because 123 00:07:08,760 --> 00:07:09,520 Speaker 3: you've got nos. 124 00:07:09,880 --> 00:07:17,360 Speaker 1: Yeah, exactly, nose uh spread. So you know, investor community 125 00:07:17,440 --> 00:07:20,480 Speaker 1: or the community you're raising within is small, and so 126 00:07:20,560 --> 00:07:23,240 Speaker 1: you don't want somebody to go to someone you just 127 00:07:23,360 --> 00:07:30,000 Speaker 1: pitched and that person say be like I passed right you. Now, 128 00:07:30,000 --> 00:07:32,520 Speaker 1: if you follow this strategy, you may have had a 129 00:07:32,560 --> 00:07:34,880 Speaker 1: meeting with that person. It may not have went well, 130 00:07:35,720 --> 00:07:37,840 Speaker 1: so they may not have invested, but you were never 131 00:07:37,880 --> 00:07:41,160 Speaker 1: pitching them, so they don't have the ability to say 132 00:07:41,200 --> 00:07:44,760 Speaker 1: I passed because you never went to them officially asking 133 00:07:44,800 --> 00:07:47,520 Speaker 1: them for money. 134 00:07:47,680 --> 00:07:50,200 Speaker 2: No, It's actually makes a lot of sense psychologically, because 135 00:07:50,200 --> 00:07:52,760 Speaker 2: like you said, it becomes a virus once one person 136 00:07:52,840 --> 00:07:55,800 Speaker 2: says no, and then another person acts. This person even 137 00:07:55,800 --> 00:07:58,280 Speaker 2: if they want to say yes, it's like, well why'd 138 00:07:58,320 --> 00:07:58,800 Speaker 2: you say no? 139 00:07:59,080 --> 00:07:59,240 Speaker 1: Right? 140 00:07:59,320 --> 00:08:00,600 Speaker 2: And then it's like, I don't want to be the 141 00:08:00,600 --> 00:08:03,200 Speaker 2: person that says yes and be an idiot when my 142 00:08:03,360 --> 00:08:06,160 Speaker 2: friend who I'm I have a high level of respect 143 00:08:06,160 --> 00:08:11,000 Speaker 2: for said no. So I'm more likely to lean towards 144 00:08:11,000 --> 00:08:15,480 Speaker 2: the no because that's just where the crowd is going exactly. 145 00:08:15,840 --> 00:08:18,239 Speaker 1: And so what you're trying to create is a crowd 146 00:08:18,320 --> 00:08:22,200 Speaker 1: momentum behind you. The hardest one to get the fall 147 00:08:22,280 --> 00:08:24,840 Speaker 1: is the first one, and you have to get this 148 00:08:24,920 --> 00:08:30,080 Speaker 1: person to fall just through your character and your pitch 149 00:08:30,800 --> 00:08:34,600 Speaker 1: and this strategy that I'm outlining, and then that one 150 00:08:34,640 --> 00:08:37,600 Speaker 1: will hopefully turn to two or three once you have 151 00:08:37,800 --> 00:08:41,800 Speaker 1: like three people is the magic number where three people 152 00:08:41,840 --> 00:08:45,160 Speaker 1: have now casually without you saying you're fundraising, have told 153 00:08:45,200 --> 00:08:48,400 Speaker 1: you they want to get behind you. Now you can 154 00:08:48,520 --> 00:08:51,960 Speaker 1: start a fundraising round with the wind that you're back, 155 00:08:52,840 --> 00:08:55,320 Speaker 1: because you could say. The way I like to sequence 156 00:08:55,360 --> 00:08:58,000 Speaker 1: it generally is, even when these people say I want 157 00:08:58,040 --> 00:09:02,000 Speaker 1: to back you, I won't say, okay, how much? Here's 158 00:09:02,080 --> 00:09:06,400 Speaker 1: the docs you want to then take a step back 159 00:09:07,280 --> 00:09:10,400 Speaker 1: once again and say, okay, I'm honored. I'd love to 160 00:09:10,440 --> 00:09:12,760 Speaker 1: work with you. Let's do another meeting. I'd love to 161 00:09:12,800 --> 00:09:15,440 Speaker 1: get your advice on these other things. I'd love to 162 00:09:15,480 --> 00:09:18,840 Speaker 1: learn how you work with founders. I like to, you know, 163 00:09:18,920 --> 00:09:21,680 Speaker 1: have this discussion on what working together will look like. 164 00:09:21,920 --> 00:09:25,079 Speaker 1: I asked for references. Say hey, can I speak to 165 00:09:25,080 --> 00:09:30,000 Speaker 1: a couple other founders you've worked with? So uh, you know, 166 00:09:30,040 --> 00:09:33,680 Speaker 1: when someone expresses interest, you don't. 167 00:09:34,160 --> 00:09:37,079 Speaker 2: Just automatically jump and say hey, yeah, I'm ready. 168 00:09:37,440 --> 00:09:38,240 Speaker 1: Yeah exactly. 169 00:09:38,320 --> 00:09:40,640 Speaker 3: Yeah. I think that probably feels like the biggest mistake 170 00:09:40,720 --> 00:09:43,400 Speaker 3: that most people make because you're in so much desperate 171 00:09:43,440 --> 00:09:46,240 Speaker 3: not desperate need, but you're in need of the funds, 172 00:09:46,640 --> 00:09:50,520 Speaker 3: and so once you feel it inklink of somebody who's interested, 173 00:09:50,559 --> 00:09:51,680 Speaker 3: it's like I gotta jump. 174 00:09:51,960 --> 00:09:52,400 Speaker 2: You got it. 175 00:09:52,440 --> 00:09:55,720 Speaker 1: Desperate, you can't. You can't show the desperation even if 176 00:09:55,760 --> 00:09:58,640 Speaker 1: you are. I've been desperate many times in my career, 177 00:09:58,679 --> 00:10:01,520 Speaker 1: even beyond just so our seed round. Yeah, but you 178 00:10:01,559 --> 00:10:06,040 Speaker 1: can never show it because this is what investors are. 179 00:10:06,120 --> 00:10:11,559 Speaker 1: Just their job is to sniff out desperation, right, they're 180 00:10:11,640 --> 00:10:12,600 Speaker 1: experts at this. 181 00:10:12,640 --> 00:10:14,400 Speaker 2: So they can get the best deal possible. 182 00:10:14,440 --> 00:10:16,600 Speaker 1: So they can get the best deal possible. Exactly, So, 183 00:10:18,040 --> 00:10:21,120 Speaker 1: no matter what desperate situation you're in, I mean, you've 184 00:10:21,120 --> 00:10:24,080 Speaker 1: got to come in with confidence. It's as simple as that. 185 00:10:24,160 --> 00:10:27,000 Speaker 1: I mean, most people won't give this advice, but I 186 00:10:27,040 --> 00:10:27,920 Speaker 1: mean it's just the truth.