Read on Twitter
Good morning from Choco: here’s a Q*&A 
for early-stage founders.
*Qs are from a @ihccbusiness Latinx incubator panel I was on last week.
for early-stage founders. *Qs are from a @ihccbusiness Latinx incubator panel I was on last week.
Q: How should founders approach the fundraising process at the start of their journey?
A: It’s important that the founder first figures out the type of business she wants to lead. Then, she can assess the best fundraising strategy and go from there. https://medium.com/@lolitataub/first-time-founders-heres-how-to-select-the-best-fundraising-strategy-for-your-startup-20584294808d?source=---------4------------------
A: It’s important that the founder first figures out the type of business she wants to lead. Then, she can assess the best fundraising strategy and go from there. https://medium.com/@lolitataub/first-time-founders-heres-how-to-select-the-best-fundraising-strategy-for-your-startup-20584294808d?source=---------4------------------
Q: How much time should they spend on fundraising vs. other things early on?
A: In the beginning, I recommend founders focus on their business and selling. https://twitter.com/lolitataub/status/1258902528290365440?s=20
A: In the beginning, I recommend founders focus on their business and selling. https://twitter.com/lolitataub/status/1258902528290365440?s=20
Q: What are best practices for interacting with investors?
A: We're human so build relationships (e.g., Twitter, LI, IG). Ask questions, reply to comments, RT
through a newsletter for prospective investors, etc. Also, keep your DMs open. https://twitter.com/lolitataub/status/1270211824906952704?s=20
A: We're human so build relationships (e.g., Twitter, LI, IG). Ask questions, reply to comments, RT
through a newsletter for prospective investors, etc. Also, keep your DMs open. https://twitter.com/lolitataub/status/1270211824906952704?s=20
Q: Is raising VC money overly glorified in the startup ecosystem?
A: Yes. Raising VC is def glorified and not the right vehicle for most. That's why less than 1% of cos get it. Read more on the stats
. https://lolitataub.substack.com/p/-oat-milk-gpt-3-underestimated-founders
A: Yes. Raising VC is def glorified and not the right vehicle for most. That's why less than 1% of cos get it. Read more on the stats
. https://lolitataub.substack.com/p/-oat-milk-gpt-3-underestimated-founders
Q: How much equity should you give up at each fundraise stage?
A: Do not give up more than
5-10% on a pre-seed round
10-15% on a seed round
15-25% on a series A
A: Do not give up more than
5-10% on a pre-seed round10-15% on a seed round 15-25% on a series A
Q: What one piece of advice would you give founders?
A: Be intentional about the kind of business you’re building (e.g., SMB, unicorn). Focus on business and when you’re ready to raise make sure that the fundraise strategy aligns with your co. https://medium.com/@lolitataub/first-time-founders-heres-how-to-select-the-best-fundraising-strategy-for-your-startup-20584294808d?source=---------4------------------
A: Be intentional about the kind of business you’re building (e.g., SMB, unicorn). Focus on business and when you’re ready to raise make sure that the fundraise strategy aligns with your co. https://medium.com/@lolitataub/first-time-founders-heres-how-to-select-the-best-fundraising-strategy-for-your-startup-20584294808d?source=---------4------------------
