AT THE INVESTMENT firm I started five years ago, Unorthodox Ventures, we see a constant stream of founders asking for funding. Unfortunately, some of them leave us feeling like we've just sat through some bizarre theater of the absurd production.
Absurdist plays-Waiting for Godot is a famous example-explore reality versus illusion. They ask whether existence has meaning, and they leave you questioning where truth can be found, if anywhere.
In other words, they're a lot like many investor decks, where founders' assurances of imminent hockey-stick growth leave the audience wondering where the truth really lies, and what is the pointif there is one-in these swaggering presentations.
If only founders would realize, among other things, that it's ridiculous to claim your total addressable market is potentially everyone on earth-unless maybe your product is clean air.
That it's crazy to say your sales are going to jump from $3 million to $200 million over a three-year span-you couldn't count the money that fast. And that it's perfectly all right to admit that there are, in fact, things you do not know.
Founders aren't alone in their investor-deck delusions. Many VC firms, too, are happy to suspend disbelief through these performances, happy to jump on the joy cart and ride it until the wheels fall off. After all, most VCs are obligated to find a home for the cash their investors hand them. Which means the grander the hyperbole, the more money they can dump into a startup while pretending to be good stewards of capital.
As a founder, you have a choice when you pitch people like me. You can be ambitious, which is admirable, or you can opt for absurdity, which can needlessly vert startup capital that other entrepreneurs might better use.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A Bankable Pet Project - How Moonshots Capital helped eTailPet scale up and attract a buyer in just three years.
Berenice Giannini's startup, eTailPet, wasn't a natural fit for Moonshots Capital. The Austin-based venture firm, launched in 2014 by Kelly Perdew and Craig Cummings, both of whom had previously served in the U.S. Army, frequently backs companies founded by military veterans.
Backers Should Have Your Back - The best capital provider for your business will offer a helping hand, not just deep pockets.
Three years ago, U.S. entrepreneurs were enjoying one of the best funding environments in decades. Venture capital and private equity hit all-time highs as banks loaned at historically low interest rates. All you needed to get a term sheet, it seemed, was a smile and a pitch deck.
Lift Off - Would you pay $50,000 to touch the edge of space?
Would you pay $50,000 to touch the edge of space? Meet the entrepreneurs providing a rarified clientele with a luxurious, once-in-a-lifetime journey.So you want to go to space. To take in the expansive curvature of the Earth glowing miles above the atmosphere, surrounded by pure darkness. To experience the mind-altering overview effect described by astronauts as a transcendent state of awe, staring back at the planet on which you've inhaled your every living breath.
There Will Always be Those Who Doubt You and Your Vision. Here's How to Tune Them Out. - Recently, I invited an experienced luxury hotelier to visit the new campus we were building near Santa Fe for Modern Elder Academy,
Recently, I invited an experienced luxury hotelier to visit the new campus we were building near Santa Fe for Modern Elder Academy, the midlife wisdom school I co-founded in 2018.
A Scientific Discovery that Unlocks Your Body's Healing Power
The founder of Stemregen, a company that creates powerful supplements that stimulate the body's natural repair system, explains how a \"fringe idea\" opened up a new world of stem cell therapy.
Transformative Growth: Agency Masters the Art of Evolution
As a destination marketer, Awestruck has mapped out a journey to success by constantly developing its services and its staff.
For the Love of the Restaurant Experience
The founder and CEO of DJB Hospitality shares his passion for the challenging and uniquely rewarding hospitality industry.
Custom PEO Solutions for Blue-Collar Industries
COMPEO is an HR management solutions provider with a jaw-dropping five-figure growth rate.
Homebuying Was BrokenMeet the Founders Here to Fix It
Cecilian Partners is a fast-growing technology firm providing end-to-end solutions for production homebuilders and land developers.
A Focus on Complete Solutions for Regulatory Environments
The Northcross Group develops sustainable processes for clients with compliance needs.