This post is a guest post from Andy Sparks. It is the first in a series titled “The Chronicles of 500: Weekly Essays on What I Learned from 500 Startups.” You can follow his journey in 500 on his blog here.
Andy is a Facilitator with Startup Weekend and the Co-founder of Launchgram, a 500 Startups Batch 5 company. Launchgram makes it painless to stay updated on products and projects that haven’t yet launched or reach completion . Follow LaunchGram on Facebook and Twitter.
You can also join the discussion on Hacker News here.
Last week, I wrote about the path that led my team at LaunchGram to our new home at 500 Startups and this week I’m pumped to kick off a new series of essays that detail what I’ve learned from my experience at 500.
Our first week diving into 500 Startups was a bit short, as it officially kicked off on Thursday, October 4th. There was no shortage of knowledge to be gained. This week’s takeaways are as follows:
1. 500 Startups facilitates opportunities, but is not a solution to your problems,
500 Startups is a Family
2. Immediately after joining 500 Startups, fundraising is your full-time job.
Dave, Paul, Christine, and the entire 500 team kept reminding us that we were good enough to make it into 500, but that ~80% of us would be “fucking dead” within one year. If we want to survive, we need to get better pronto, and that’s on each company individually.
Our survival, and ultimately our success or failure, will depend on each team’s ability to learn from the functional expertise of our batchmates, mentors, and previous 500 founders. The difference between Don and Dave is that not only is asking for things okay, it is encouraged. “Your problems are not unique,” is a phrase that’s been echoing around in my head all week. Dave would support Don’s overarching point: stop asking for permission from others, focus on your work, and just get shit done.
While getting into 500 feels like a pretty big accomplishment, the team there made it clear that a long road lies ahead and while they can help us, they are by no means a “silver bullet.”
In short, 500 Startups has successfully made it easy to feel like we’re part of an epic family which cares about each of its members from very early on, and that’s powerful.
Getting into 500 Startups certainly doesn’t make fundraising harder. On day two, Paul Singh and George Kellerman dropped some serious knowledge about fundraising. Here are a few gems I picked up on:
2. After your 2-3 minute pitch, shut the hell up; the next person to talk wins.
Entrepreneurs think in terms of how much money they’re getting, but sometimes investors think in terms of what % of the company they’re buying (this varies from angel to angel / with VCs, but is good to be conscious of)
3. Finally, you can’t go very long in Silicon Valley without hearing the phrase “fundraising is a full-time job.” It’s tough to give up some control over the product, but by this point I know I’ve built a team that can more than handle it on their own. Know that your people deserve big paychecks, so go get out there are bring them home.
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Vi is the Social Media Intern at 500 Startups. When she's not obsessing over what's trending and engagement rate at 500, she hustles for Startup Grind. She likes sushi.