Founder Fridays No. 74
Kill Shared Calendars -- Cold Emails to Investors -- TAM, SAM, SOM
Happy Friday.
Kill Shared Calendars
Imagine a day where your time is your own. At 37signals, co-founders Jason Fried claims to have achieved this. How? By killing shared calendars. They advocate for a more respectful and intentional approach to scheduling, valuing time as a precious resource. He says: “We don’t have shared calendars at 37signals. I can’t take time off your calendar. You can’t take time off my calendar. We can’t see each other’s calendars. This is a good thing. If I need an hour of your time, I have to ask you for it. People say it’s so inefficient. That’s because it is. Modern calendars have made it way too easy to take someone else’s time. It should be hard. Calendars are like Tetris and meetings are just the little squares. You forget what they mean. The moment you take something away, there’s a before and after, and there’s buffer time around that. This is the root cause of many problems inside companies. You don’t have control over your time. It’s way too easy to take other people’s time. People treat time as just a square. It’s so much more than that.” PodUp (3 minutes)
Cold Emails to Investors
Cold outreach to investors can be effective if approached thoughtfully. Prioritize warm introductions when possible, as they enable smoother investor interactions. If cold outreach is necessary, make it more effective by using the "skeleton key" approach - highlight shared affiliations which act as a skeleton key to unlock deeper engagement. Open your email by implicitly referring to this shared affiliation or "skeleton key" to grab attention. Including this mutual affiliation makes the investor relate to you and be more receptive. This "skeleton key" is simple - it is just finding something you and the investor have in common. By using this skeleton key of mutual affiliation in your outreach, you unlock the investor's mindset and make them more likely to engage. Fundraising Fieldnotes (5 minutes)
TAM, SAM, SOM
There are three key acronyms to know before launching a new product: TAM, SAM, and SOM. These metrics map out the market landscape and customer segments. TAM is the total addressable market, SAM is the serviceable addressable market, and SOM is the serviceable obtainable market. Calculating TAM, SAM, and SOM helps assess market potential, inform investment decisions, guide product development, analyze competition, and drive sales and marketing. TAM is the maximum possible revenue, SAM is the segment realistically served, and SOM is the realistic market share attainable. Knowing your TAM, SAM, and SOM provides a roadmap to understand your audience, their perceptions, and your opportunity before launch. Mastering these three acronyms sets you up for success when introducing a new product. Foundation (7 minutes)
Founder FAQ: What is par value on startup stock?
Par value is the minimum share price, while market value is the current trading price. Par value is set in the certificate of incorporation. For most startups, the par value is set incredibly low, generally $0.0001 or $0.00001 per share. This allows founders and early employees to purchase or receive shares for a nominal value. However, if investors believe in the company’s growth potential, they may be willing to pay more per share than the par value. Startups will issue shares to investors at a price higher than par value. For instance, it would not be uncommon for the price per share in a Series A to exceed $3.00 per share while the par value remains at $0.00001 per share. It’s important for companies and investors alike to understand the difference between par value and market value when buying or selling startup stock. Westaway (5 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term by term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
Certainty in an Uncertain World
The startup journey is filled with uncertainty. A fractional General Counsel (GC) provides the certainty of on-call legal expertise. Having an experienced GC gives founders invaluable peace of mind. With a seasoned startup legal expert on demand, founders have a steady guide through uncertain legal terrain. The GC acts as trusted strategic advisor while also handling day-to-day legal tasks. This lifts a huge burden off startup leaders, allowing them to focus on growth with legal confidence. Rather than getting bogged down in legal details, founders feel empowered delegating to an expert and focusing on their vision. Founders sleep better knowing their GC can swiftly handle any legal issue that arises. If you’re curious how a fractional GC can give you peace of mind, let’s talk.
Post of the Week
Some great pearls of wisdom here.