For A Stranger In Silicon Valley, Success Isn’t Only About Who You Know

(Via TechCrunch) – Thought this was a great piece on what networking can do, for even complete outsiders. It’s one of the many inspiring reasons we’re building ZoloDeck. Enjoy!

For A Stranger In Silicon Valley, Success Isn’t Only About Who You Know:

cherian-thomas

Editor’s note: Cherian Thomas is founder and CEO of Cucumbertown, a recipe-publishing platform. Follow him on his blog and Twitter.

For entrepreneurs, it is now both easier and harder to raise capital: easier because of powerful platforms like AngelList; harder if you’re not part of an accelerator or don’t have a strong network.

Silicon Valley has more startups than ever before. My startup, Cucumbertown, raised its first round a month ago, and during the course of this journey, I realized that, as a first-time entrepreneur without any solid Valley footing, my run toward raising funds as a non-American co-founder was somewhat unique.

Valley funding used to be an impenetrable fortress that opened up only by way of introductions. Your success in raising capital decreased to insignificant levels otherwise. The only other chance to make yourself noticeable was traction, which trumps everything. But the market dynamics of fundraising is shifting, and investors are no longer clustered in the Valley. Accelerators are becoming the showcase for promising startups. I was initially disappointed when a VC told me their firm only focuses on YC companies. But then I realized it makes more sense for them to look at YC, 500Startups or TechStars than to sift through hundreds of decks. These accelerators are becoming the entrance exams for selection.

So here’s how my month of experience as a non-accelerator, non-American fundraiser translates into advice.

Make Friends Fast

I was scheduled to meet 500Startups Partner Paul Singh on the second day of fundraising. As I waited for my appointment, Courtney Powell, CEO of PublikDemand, asked me about Cucumbertown. We became friends within the hour. The PublikDemand team invited me to crash at their home and Courtney taught me everything she knew about fundraising. We continue to meet whenever I am in the Bay Area. Courtney even re-wrote my press release notes.

After I read Darius Monsef’s article on TechCrunch, I contacted him, and he put me in touch with Rajiv Bhat, co-founder of YC alumni Mertado. Rajiv advised me on everything from convertible caps to living life as an Indian founder in the Valley. Nowadays Rajiv and I meet frequently here in Bangalore to track one another’s progress. I even bake for him.

Cucumbertown’s first investor and the co-creator of Farmville was Sizhao Yang, and we became great friends. He also offered constructive criticism of Cucumbertown. Every now and then Zao mails me one-liners reflecting something on the industry worth understanding. Zao now is my 1 a.m. friend/investor on call.

Cucumbertown’s most important advisor and friend is Naval Ravikant. He responds to every email and takes action when necessary. He even follows up. When Naval said stop, I stopped. When he asked me to meet him at AngelList HQ in San Francisco, I changed all my other plans.

These people represent only a fraction of the relationships I built in less than a month, and they represent the change in Cucumbertown’s trajectory to success.

Meet With Companies Who Have Raised

It’s also important to meet with companies who have recently raised. They have a wealth of tribal knowledge that can help you save time. For instance, I met with a company that closed its funds in October, and they advised me about the shift in investors’ herding mentality due to the September YC Demo day this year. This was a wealth of information, as I was able to strike a number of investors from my potential list.

Get On AngelList

AngelList is powering the Valley’s revolution in investing and raising funds. During one of my lunches with an investor, he said that raising funds for the first company he co-founded was near impossible. And raising series A was much more difficult than that. His company’s investors played waiting games and did not introduce the company until their contacts came into the picture. He said shady acts like this frustrated him as an entrepreneur.

AngelList changes all of that and is perhaps the most important tool you’ll need as an entrepreneur raising capital. It is the canonical source of all things related to angel funding in technology now. Never has Silicon Valley been in a position where every investor and fundraiser could e-meet at a platform.

Cucumbertown represents a first-time investment for Mokriya‘s CEO Sunil Kanderi and partner Chandra Kalle. I met them during a growth hacking conference in San Francisco, and they expressed their desire to be connected to Cucumbertown. Our profile on AngelList, our existing investor list there, and our testimonials offered the credibility we needed to gain their trust. And investor Stefano Bernadi followed us out of the blue on AngelList and subsequently invested in Cucumbertown.

Here are some things I learned to be successful on AngelList:

  • Build a concise and compelling profile.
  • Make it equally good for your team, too.
  • Follow investors early on, even during your idea incubation stage, to understand their modus operandi.
  • Follow partners at VC firms to understand the deals they are seeking. You can view their activity stream.
  • When you get your breakthrough investors, immediately connect with their connections and start the conversations (AngelList allows you to talk to connections of connections).
  • Showcase your strengths in the status messages. Don’t overdo it.
  • Respond to everyone who initiates a message with you. But once you start calendaring in people become selective in appointments.
  • Get your investors to write testimonials for you.
  • Almost every company listed there is exceptional. Being different is difficult. But seek the difference.

Silicon Valley works largely by clustered investments. Your company would have always had a chance of being invested in by people who knew each other. And limited by them, too. That has changed with AngelList.

Calendar Every Meeting

I met 28 investors/funds over three weeks, and more were scheduled. The Valley is flooded with investors, and it can get pretty overwhelming once people start responding. Keep it organized and calendar all meetings. The executive assistants for most of these investors will reschedule your meeting at least three times. You have only once chance, so be prepared to move around.

Learn To Say No

As tempting as it was to accept capital from anyone — especially with the uncertainty of the future looming over our heads — we said no to investors who did not align with our thought process and principles. It was difficult. But we sleep well today. My new best friends in the Valley taught me this quality, as well.

Maintain Heat

The Valley has more startups now than ever before, and investors are bombarded by a hundred pitches every week. You are as valuable to them as the other 99 and so are likely to get lost within three days. Be proactive in the conversation, and try to get a response in a week.

Fundraising is a game. If you know you have a good product/team/traction, then get in to win. You are already here because you believe in something. Continue the journey to win. Persevere.

Thanks to Maneesh Arora, advisor and investor in Cucumbertown, for the draft review.

[Disclaimer: 500 Startups is an investor in Cucumbertown. But we are a non-accelerator investment. Though Naval is AngelList’s co-founder Cucumbertown did not benefit any special status. Cucumbertown wasn’t a featured startup or did not show up in the trending list. Dan Hauk is Cucumbertown’s American co-founder. But Dan was not involved in fundraising. Cucumbertown is a distributed startup and none of us co-founders have seen each other. I travelled to the Bay Area to raise funds.]

 

(Via TechCrunch)

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