Founder Fridays No. 87
First Board Meeting After a Raise -- How to Value Good Design -- Getting Lucky
Happy Friday.
First Board Meeting After a Raise
Post-fundraising is when the real work begins, but you already knew that. You’re off to the races, hiring new faces and trying to grow sales so you have good news to share at your first board meeting. Sasha Orloff (YC W12), CEO of Puzzle, has a tip for you. The first board meeting is a pulse check on you as a founder. Your investors and advisors are looking for reasons to complain: “You’re growing too slow.” “You’re not charging enough.” “You’re going after the wrong customers.” At this stage, being imperfect is okay but being unprepared is not. And knowing the nuances of how to run a board meeting is a key part of this preparation. Here is a Startup Board Meeting template to help showcase the status of Puzzle at their first board meeting after our $30 million Series A. This is the EXACT template they still use today. Puzzle (5 minutes)
How to Value Good Design
Value in creative work extends beyond just numbers and metrics. The design process, including creativity, problem-solving and collaboration, is often overlooked when measuring success solely through quantifiable data. While some aspects of design can be measured through research and testing, creative work often involves experimentation, questioning and risk-taking to innovate. Overemphasis on numerical proof may hinder the development of groundbreaking products and the cultivation of creative ideas within a team. Stories have the power to create lasting memories and emotional connections, which are essential for businesses aiming to establish genuine engagement with their audience. Authentic, two-way connections between creators, brands, and companies and their audiences are invaluable and cannot be fully quantified. UX Collective (7 minutes)
Getting Lucky
Here are five actions that founders can take to “get lucky” in business. 1) Focus on your purpose. Having a clear sense of purpose helps entrepreneurs focus their attention on the opportunities around them and attract favorable circumstances. Research shows that entrepreneurs who perceive their work as a calling are more successful at attracting resources compared to those who view their work as just a job. 2) Follow your passion. Passion attracts luck and motivates entrepreneurs to persevere in their pursuits. It can also help entrepreneurs raise venture capital more successfully and inspire others to extend opportunities and support. 3) Get in it to win it: Taking the first step toward a goal equips entrepreneurs with focus, helping them identify and seize lucky opportunities. Sharing early-stage project ideas can lead to valuable connections that contribute to success. 5) Stay in it to win it: The longer entrepreneurs persist in their ventures, the more luck they can attract, recognize and capitalize on. Gritty entrepreneurs who combine perseverance and passion can work on their ventures for extended periods, exposing themselves to more opportunities. 5) Practice gratitude. Acknowledging and appreciating one's privileges and advantages helps entrepreneurs develop a stronger sense of purpose. This heightened sense of purpose enables them to focus their attention, seize lucky opportunities and increase their productivity. Fast Company (8 minutes)
Founder FAQ: How Does My Startup Deal with Founders’ Expenses Prior to Formation?
Founders often pay for expenses to test a minimum viable product before officially incorporating. Sometimes, these expenses are just a few hundred dollars in server fees, while other times founders have maxed out their credit cards. In either case, this is personal money, not company money. Therefore, it’s understandable that the founder would like to be reimbursed. This post provides founders with an overview of the situation. Westaway (7 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
Extending Your Runway with General Counsel
In this economy, every startup is looking to lower burn rate and extend runway. We helped a Series A generative AI company drastically reduce their legal spend by switching to our General Counsel service. When we first met them, they were working with a big law firm and felt they were overpaying for basic legal work. Nearly every month, they got a hefty bill just to cover equity grants, contract reviews and lawyer calls/emails. When they switched to General Counsel at Westaway, they:
Got more personal service and quicker response times.
Significantly reduced their legal spend.
With faster deal execution and lower spend, they extended runway and improved cash flow. If you're looking to optimize legal costs and extend runway, click here to schedule a call. Let's discuss whether on-demand General Counsel is right for your startup.