Host: First Funders Podcast - learn from investors who write the first check
SWE ➡️ Product Manager ➡️ Founder (Nest Cam fka Dropcam) 🔀 Investor, CRE, Founder
We go deep with angel & seed investors on:
⭐️assessing founders and startup companies
⭐️their overall portfolio strategy
⭐️where they focus, so founders and other investors can connect
Episodes release every 2 weeks. Follow in your fav podcast player:
@thatguybg
This is a very goog-centric post. It aligns with my experience.
For
#1
- GOOG likes to play the "who the f are you" game. They say their people are so good.
In hindsight... hahaha. Dear founder, they are begging for people who want to do real work. Push on that.
When you raise money, you need a market story, not a market size.
@bryce
said that if your potential investor is asking about market size, you've already lost.
When we started working on
@dropcam
, we saw a report that said the size of the US consumer IP camera market was...
@shl
I learned a lot about what NOT to do from prior startup experiences before founding a company. Anti-mentors can be just as good as mentors for hammering lessons into your head.
@ramit
@netflix
The thoughts about wealth and how it affects you even when “it’s your parents money” are very mature. Best description I’ve heard yet.
Sometimes redditors write so well. :)
One big benefit of
@dvassallo
's Small Bets group is the set of talks. The monthly list is good to see; a few are always worth attending.
@DellAnnaLuca
on success and ergodicity - great job!
@girdley
@d1_stewart
You might want to put your thoughts anyway, as I’ve lived through fights on what family would have wanted. The more guidance you can provide for the first 3 months you’re gone, the better.
People have different relationships with you and so it’s hard to align on these items.
@steviemctweets
The game is to build a product wrapper that is enticing and gets users, and then try to defend it with underlying data moats. Maybe.
Or it's just a quick buck. Nothing wrong with making money during the gold rush. Good for the founders! Not so much if you are long.
Joined
@robwalling
's
@microconf
connect - already feels like a good community!
Biggest thing compared to others (no shaming!):
The community isn't centered around Rob - it's people actually talking to each other and helping with suggestions. 👏
Has anyone (
@arvidkahl
?) found a clean way to look at
@twitter
lists so that you can sort by followers and most mentioned? So many clicks to figure out which lists are legit (and which accounts are active and of value).
Free calculator of the day, "MicroSaaS Acquisition Payback Forecast 🌱".
This is highly-compatible w/
@microacquire
, i.e. you can find the inputs on most listings.
Set a price, add loan terms if applicable, define growth assumptions, forecast payback!
@david_perell
This is critical for senior hires - they've interviewed a lot and have mental scripts!
If they manage people, how can they convey what they want junior members of the team to do if they're not specific?
If they are the first on your team, what will they do?
@HamptonFounders
Our kids are 7 and 4. We're doing the moonjar thing:
1️⃣ allowance every week equal to their age - not awarded for family chores, just money to budget
2️⃣ they place in buckets: save (for big things), spend (for candy etc.), share (for charity)
I am surprised Facebook doesn't take a single "company page creation" process and walk you through creating an Instagram page for it, a WhatsApp page for it, and so on.
#buildinpublic
Nice writing by
@ballmatthew
on AR/VR/XR and how it gets further away:
Ding ding ding: "But even pre-iPhone smartphones demonstrated clear product-market fit at mass scale, not just potential."
On First Funders,
@rachelsheinbein
shares how she's an angel investor who would rather lose her money than see a founder miserable and ruining their life.
@mkapor
did that for me in Dropcam year 4.
Have you ever experienced that type of angel? Give them a shoutout! 👇
@bentossell
I really wanted to join an NBA front office, so I applied to an openings with
@SacramentoKings
a few years back.
Even sent a presentation deck to their CEO on building out some fan experience stuff.
No response. 😢
@natfriedman
Agree 100%. Showed it to people in my town's government and they were floored by how much more they could do with their simple survey data.
@chrissyfarr
paging
@davegerhardt
- his founder brand book is a good primer on approaching this, especially if doing B2B.
I think
@chrissyfarr
is right as well since brands are all just blurring together - the way to stick out especially early is by being a person, not a company.
@lennysan
@MyHeritage
In personal use (I last looked into this a few years ago), it was really hard to capture well on a screen. Too much clicking and not much detail when looking at “tree level”. The emphasis was on individual view and input phase… it’s all based on pro genealogy workflows.
There is no more important metric to monitor than retention. But retention metrics are easy to incorrectly define, potentially leading teams in the wrong direction. New post on why the "slope" of the retention curve is the most critical KPI to monitor.
@emollick
I think this is more a signal that current search capabilities suck. Like even with Google Drive, search is abysmal when trying to find a file where I remember the name but am off by one word.
Maybe if they monetized slide titles with ads they'd care.
@dannypostmaa
The thought process is “can you build a team with conviction.” Since most initial founders don’t have money, they give equity to get the first teammate. Give enough and it’s a cofounder.
If you can build while being the sole founder and hiring a team, you’re still good.
@sachinrekhi
I read parts of it, but felt like it didn't really apply unless you are at crazy scale. What questions are you thinking about (happy to share my list as well)?
Hello jQuery my old friend.
On a related note, hey
@mattwensing
I assume you are not using plain old JS so did you go full-on React or something else?
#buildinpublic
We already have founders updating their profiles to mention it.
This will make it easier for other marketplace founders, leaders, & even investors to connect with other community members.
I was the first support rep for Dropcam - up at 6am answering phones and emails until 6pm.
There were not a lot of calls or emails at the start - just a few interrupts during the day.
BUT - that means I got to learn from our first 200+ users and many prospects. Priceless!
As an early startup investor, should you invest in all areas or specialize?
@arjundarora
tells First Funders what he's seeing after talking to emerging seed fund managers and the LPs behind them.
Maybe that 420 fund doesn't sound so bad after all. How are you thinking about it?
Congrats to
@Yoroomie
on this launch - I speak to many founders who are building marketplaces and have no prototype yet. This'll be the first resource I point them towards.
The second edition of The Guide To No Code Marketplaces is now live!
It's 50+ pages packed with everything you need to know about building, launching, & scaling a marketplace using no code.
The best part is that I’m making it free.
@jrichlive
@HarryStebbings
The best execs are those who are willing to do the grunt work at the beginning to better understand what users want.
VP - Marketing: writing copy and looking through website images. And reviewing ad performance.
VP - Customer Success: handling calls/emails for 3 months!
I’ve recently questioned myself for treatment choices that were only clear with the certainty of hindsight.
The best analogy I heard was this:
Even if a mountaineer reaches the summit, they may still look down and see easier paths
But that view was only available AFTERWARD
@lennysan
I was there for this live (thanks
@joshelman
). The audience had a holy shit moment when he started saying this and we were all looking around stunned… and then we were dissecting it afterwards.
@sachinrekhi
This was a key message we had for product folks at NGA.
So many products where the vision was based on a line item for budget or “establish a capability”.
So reactive and losing budget as a result. PMs with vision felt empowered and thought ahead so they could *get* budget.
The
@bessemervp
seed investment in Dropcam memo is online, so I wrote some behind-the-scenes as a startup founder. Big things:
* investors do back-channel (right
@dunkhippo33
?)
* founders hint (not lie)
* great investors look for thought process
More:
FTC vs Amazon, especially after reading
@benthompson
this morning.
Dropcam sold on Amazon and our own website back at the beginning. And yet, Amazon would find lower prices and lower their Buy Box price as a result. Of course, they kept their %.
Where did they come from?
Met with two founders yesterday pitching for their next round. Biggest mistake?
Not emphasizing progress.
If you've been working (and raised money to do it), share vision AND progress so far.
This includes metrics, even if they're not great!
Show you know what's important.
@ShaanVP
@MyReplika
There are so many that came out four years ago.
@HiWoebot
is the best example. At the time, all seemed focused on AI responding with CBT prompts and behaviors. Helpful? Yes! Personalized? Not so much… but that’s the point of CBT - breaking common patterns.
Here's a sneak peek into a really insightful First Funders episode with my friend
@amitku
from
@Accel
. He's truly a one-of-a-kind founder/operator investor who sees his job as "co-founder as a service." We can't wait to share the episode soon!
"The founder capitulation is complete."
@arjundarora
drops this bomb on the First Funders podcast. Do you think he's right? Are early-stage valuations resetting to normal?
If you are an angel or seed investor, what do you see? What's normal?
Is VC as lucrative as you think? Should you stick with boring old index funds?
Of course, the answer is it depends, and you need to understand both sides of the table (yes this exists for VCs too!). I wrote about it here:
But here's a quick summary:
@sachinrekhi
Thanks for sharing. Software is no longer an adventure is what I’ve been telling folks. I appreciate the VCs going out and looking for new things… but the problem is [climate quantum etc] have longer timelines and diff risk profiles. Most 2000-2010s VCs are not right for this.
Wait, if startup valuations are so high, that must mean deals are super-competitive, right?
@amitku
chimes in with the reality:
1️⃣ if you have the same point of view as everyone else, then you're competing with the crowd
2️⃣ if you are unique, those deals are not competitive
@SteveWiesnerSMB
This is why I like learning about how people participated team activities growing up - sports, music, volunteering, whatever. (Even better if they still do it as adults). You can't be the star / win every time, so how do you handle it?
Thanks for the
@Dyson
Against the odds biography recommendation
@FoundersPodcast
.
I’m on page 8 and have already laughed and applauded the flame throwing at gov and society twice.
we're seeing a noticeable uptick in interest from investors wanting to follow-on into
@calmfund
portfolio co's. I guess strong unit economics and a path to profitability are cool again 😎
Shoutout to
@verge
and
@reckless
and the whole team. I think the new design is great - yes I like to check websites. The bet on taking on Twitter not Wired (see
@benthompson
interview) is right.
(Looking forward to the iterative design updates 😉)
@chrissyfarr
It seems weird to say human contact is important and then to pawn it off to AI hardware and software.
I know it's about the shortages of workers, but... family? Do studies talk about whether loneliness is related to family members or "I just need someone to talk to?"
@realEstateTrent
It's such a powerful commercial (a series! great job by Michael Tabtabai) and they're all spot-on with how this generation seems to feel.
But then it's about a financial services company. I thought it was a third-party campaign launch.
Thank you
@Verge
and
@dcseifert
. When did you start adding that XCode benchmark? This is super helpful to figure out what's overkill for those who dabble.
@EasterbrookG
@joshelman
You, Ralph Wiley (RIP),
@BillSimmons
were up on one screen all day (your articles were really long!) at my first job.
Good reading while running tests and simulations 😉
@chrissyfarr
Yes, I'll give you an example.
@laserlikemike
didn't invest in us, but spent time to go over what he liked, didn't like, and legitimately discuss his fund's investing thesis.
His "two-crime theory" discussion I share with many founders. 😏
Okay yeah ChatGPT is insane.
If you're trying to write, it's really helpful! The conversational flow allows you to think as the reader and ask questions that naturally come up in your topic of interest.
Is there really no Alexa for dentists that will simply transcribe "1-2-2-1-3-..." gum measurements into their patient records?
I know it's not critical, but waiting for that second person to show up is a bit of inefficiency, isn't it?
@lennysan
Which platform? Does she want local or cloud, app or browser?
I use
@myheritage
and it’s fine. A lot of various upsells but it holds the data fine.
On First Funders,
@jefielding
,
@shaherose
, and I talked about positive founder attributes.
I see three types of founders:
1. those who listen to everything you say
2. those who listen to nothing you say
3. those who listen, synthesize, and teach
How do you describe "it"?
@hamiltonulmer
I think
@robwalling
says Drip spun out of something else - his podcast talks to folks about this a lot.
@nickfogle
said ChurnKey did this, and
@daviddarmanin
said HotJar kind of came out of something else, too, right?
@NWischoff
Yes, agree. It's hard to trust auto outbound, especially for early stage.
Signals you look for are either on founder laptops or are superficial.
I used to think aggregators (ht
@benthompson
) would have an unfair advantage hunting startups, but that hasn't panned out.
What does investor conviction look like? How does an investor behave when they are your biggest supporter at the early stages?
@jefielding
shares her experience with Chainalysis, and how she prodded her investor friends to bring them from Europe to the US. It didn't happen.
3. "Don't be an asshole" only gets you so far. You have to be nice and effective - and that means clear communication and expectation-setting.
For more detailed stories:
One of the scariest things to do as an early founder is ask someone cold for a "customer interview".
Quick outline for a first SHORT message that's worked well:
1️⃣ ask about a problem you think they are facing
2️⃣ say you're like them and trying to solve it for yourself
@chrissyfarr
If you are an AI infra investor, then you'll want to have someone to help.
But if it's the majority of what we see, then it's about the product being built around AI and its defensibility. And also whether they can get rug-pulled by the platforms.
So ask!
@jrichlive
Bad things happen when you think your product is the platform, and the platform doesn't really exist.
Don't worry. Matter will fix it all. 😔
Say hi to
@usedaily_co
👋: A simple, distraction-free, offline-first daily scratchpad for pretty much anything.
It’s way behind what I want to do (roadmap in the app), but I’ve been using it for more >2weeks. Gotta share it! I’d love to hear ur feedback!
@ManuKumar
I've only been on one panel where it was worth it. The trick?
The moderator came up with questions beforehand and send them to each panelist. They asked:
1⃣ Which ones would you like to answer?
2⃣What's your 10-word take?
At the event, they asked the Q with opposing views.
@bryce
@DropCam
$200MM/year.
Yikes. That was not the multi-billion dollar opportunity Silicon Valley wanted to hear about.
But there was a vision on what this could be - cameras to "watch what you love", and that made us talk about potential users. Investors were way more interested in that!
@bentossell
100% physical. They still enjoy some pictures and Kindle rendering is not great, and reading on an iPad is no go with too many distractions.
Besides, they're still very tactile! The idea of turning pages and seeing how far they are is useful and helps them understand stamina.
@bentossell
I like how
@arvidkahl
and
@tylertringas
spoke about how you can use the AI to be adversarial - help you see the "likely" output to make your writing unique. That's the win for the minority who will do the work.
Now whether Google will seek it out...
@yongfook
The interesting experiment after using that book will be comparing it to the AI Ad generator Google presents you.
People don’t really run that experiment. If you know nothing you do easy ads setup. If you know a little and listen to an SEO they say go manual. But prove it?
At one startup we had a very expensive rent-a-CFO at the start. All that money (and equity!) later, their voice still runs in my head:
BOOKINGS. BILLINGS. REVENUE.
bookings = promised
billings = invoiced
revenue = earned
Early stage founders: I'd ask your accountant if they are using cash or accrual method and how they account for bookings & recognized revenue.
Write down their answer (better yet, get it via email), and then google bookings & recognized revenue so you understand it as well.