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Startups are a game of privilege.
Founders need investor and operator networks to raise $$, evangelize their startup, connect with future hires and find new customers.
So how does a founder navigate networks of privileged investors and operators to get their way?
Thread/
Founders need investor and operator networks to raise $$, evangelize their startup, connect with future hires and find new customers.
So how does a founder navigate networks of privileged investors and operators to get their way?
Thread/
Startup founders with privilege get funded 2-3X more than founders without privilege. Think all the tropes - white / brown / asian male from stanford / harvard / princeton / nyu from an upper middle class / rich stable family with money to spare on a computer and exploration
Why do these "privilegeds" get funded? Because they eschew basic survival to visualize what growth looks like without worrying about a safety net.
Also why moderately successful founders w/ $1-2M in the bank make the BEST backable 2nd time founders.
They dont worry about rent.
Also why moderately successful founders w/ $1-2M in the bank make the BEST backable 2nd time founders.
They dont worry about rent.
(and no, living in your moms basement, having to cut expenses, selling cereal at political conventions and eating ramen isnt survival.
having no money for rent / food and doing 3 jobs while supporting a family is survival)
having no money for rent / food and doing 3 jobs while supporting a family is survival)
But the biggest reason privilegeds get funded is because they speak the language of other privilegeds - operators, advisors and investors at Ser A-D level.
People often ask how dude bros get funded for $5-10M without traction.. They paint a vision of scale the investor BELIEVES
People often ask how dude bros get funded for $5-10M without traction.. They paint a vision of scale the investor BELIEVES
Why don't investors BELIEVE underprivileged founders?
Because it is HARD to relate to the lack of privilege from a position of comfort.
Ironically investors who gained the most privilege in 1 lifetime relate to underprivilegeds the least.
Might be a coping mechanism.
Because it is HARD to relate to the lack of privilege from a position of comfort.
Ironically investors who gained the most privilege in 1 lifetime relate to underprivilegeds the least.
Might be a coping mechanism.
How do you navigate that when you start without privilege?
SIMPLE: ACT LIKE YOU ARE PRIVILEGED.
Founders need to look and act privileged to raise $$, leverage networks and scale their startup.
SIMPLE: ACT LIKE YOU ARE PRIVILEGED.
Founders need to look and act privileged to raise $$, leverage networks and scale their startup.
1/ Privilegeds like to focus on "bigger picture" "vision" "growth potential" and "the macro framework". They are lousy executors, shitty Indiv Contributors and extremely disastrous advisors.
They make great evangelists, introducers & door openers. Use them for that
They make great evangelists, introducers & door openers. Use them for that
2/ When speaking to Privilegeds, do not make your story of suffering too intense. Mention tough situations briefly in passing.
Privilegeds LOVE strivers and inspirational anecdotes because they secretly think they struggled to succeed too (eg selling cereal..)
Privilegeds LOVE strivers and inspirational anecdotes because they secretly think they struggled to succeed too (eg selling cereal..)
So a story like:
"I saw my mom suffer in hospital because I couldnt afford private care or pay expensive bills.."
turns into..
"Seeing my mom suffer in a government hospital made me determined to build generational wealth.."
"I saw my mom suffer in hospital because I couldnt afford private care or pay expensive bills.."
turns into..
"Seeing my mom suffer in a government hospital made me determined to build generational wealth.."
You do this to make yourself look tough but not inflexible.
Same with growth visions.. Founders often say.. "With the right resources, we can do....<insert growth vison here>"
What the investor hears: "They cant do it alone and I want a founder who doesnt need my help.."
Same with growth visions.. Founders often say.. "With the right resources, we can do....<insert growth vison here>"
What the investor hears: "They cant do it alone and I want a founder who doesnt need my help.."
Instead most privileged founders say.. "We're going to nail <insert growth metric here> by <time frame>... You'll love the ride!"
The investor feels: "Wow no work & <growth metric> in <time frame> Holy Shit this founder is truly visionary, lets go before someone else funds him"
The investor feels: "Wow no work & <growth metric> in <time frame> Holy Shit this founder is truly visionary, lets go before someone else funds him"
3/ Privilegeds are wary of doing work. When a founder says "We need help with hiring, finance and product..." EVEN if the founder means "help", the investor thinks3
"Founder *cannot do* hiring, finance and product.. easier to pass!"
Privilegeds say "We'll ping if we need you"
"Founder *cannot do* hiring, finance and product.. easier to pass!"
Privilegeds say "We'll ping if we need you"
4/ Investors are just as thirsty for validation as you are. Their validation comes from association w/ cool deals, and who they perceive to be cool founders.
Networking, Gossip, FOMO tend to run their aspirations - feed that trait.
Evangelists who seed gossip networks = Gold.
Networking, Gossip, FOMO tend to run their aspirations - feed that trait.
Evangelists who seed gossip networks = Gold.
5/ Do NOT expect your Privilegeds to do ANY real work for you.
Their definition of "real work" is a 30 min call, 5 half ass email intros and a casual follow up a month later.
And thats just those who get great referrals on twitter.
The rest fuck right off after Month 4.
Their definition of "real work" is a 30 min call, 5 half ass email intros and a casual follow up a month later.
And thats just those who get great referrals on twitter.
The rest fuck right off after Month 4.
Use this during your pitch by feeding their vanity by referencing 2-3 of their best founders with markups who "love" them and care about their "value add"... They'll believe you.
Finally the most morally onerous task dealing with Privilegeds:
Act with mission-driven apathy.
Where the mission drives your mercenary behavior and every other side effect is just
w/ a sad face because, "it happens"
Ranges from co founder leaving to Death of a loved one.
Act with mission-driven apathy.
Where the mission drives your mercenary behavior and every other side effect is just
w/ a sad face because, "it happens"Ranges from co founder leaving to Death of a loved one.
/fin
ps. People conflating "hard work" with "privilege" please check yourself FFS.
pps
Those asking what "privilege" means - its not just money or status.
Its a series of systemic economic, social, genetic, geographic, emotional advantages that have been embedded around your life and upbringing that yield you an unfair advantage WITHOUT YOU REALIZING IT.
Those asking what "privilege" means - its not just money or status.
Its a series of systemic economic, social, genetic, geographic, emotional advantages that have been embedded around your life and upbringing that yield you an unfair advantage WITHOUT YOU REALIZING IT.
