Our thoughts about backing coachable superheroes.
You might not expect snowboarding and venture capital to be connected, but for me, they are inseparable. Snowboarding has shaped how I approach nearly everything in life, including how I invest in and work with startups. It’s also why I named my firm Sidecut Ventures.
The TAM/SAM/SOM slide is one of the most misunderstood, awkward slides in the pre-seed decks I review. Most are confusing and hastily put together as most founders furiously Google nuances between “addressable” and “obtainable” or cut and paste charts and stats from McKinsey Quarterly without any context. When these are bad, investors ask questions like, “Is this really a venture scale business?” or “Do you really think you can execute your long-term go-to-market?”
Instead of trying to convince me to join your view of the world, tell me your story, and then listen to mine. Get real with me. From there, if I invest, you know I am all in and we can start building a healthy relationship. If not, then we both get to know each other as people and perhaps there are other ways we can help each other.
We deal with pre-seed founders who are heavy on vision, but short on traction. So how do you fundraise and pitch your big idea with some credibility?
When it comes to growth in light of the recent funding environment, many founders are reacting in one of two extreme ways – either they have totally shut down all growth spending to zero, or they panic and are trying to cover the table of activities.