HOT VENTURES
Sometimes we invest or bring in other investors. Other times, we join as a board member or an advisor. It’s our passion to find potentially great companies and guide them to exit.
Rules To Live By:
• It is good to trust, but much better to know (not just to trust)
• Focus on what should be done, not just what you can do. Then put all effort into how you can do it. While this is much harder, it not only provides the best solution for your customers, but the biggest deterrence to your competition
• It is not as simple as knowing what to do. For example, most people know what foods are necessary for an ideal diet and how much they should exercise. However, most lack the discipline to actually perform to this knowledge. Knowledge is good, but the ability to execute is much better.
Key Issues in Fundraising:
• Value is best achieved by Revenue. Even more value is found in accelerating Revenue
• It’s not just about finding investors…we need to evolve the company such that it is capable and deserving of funding and will use those funds productively
• The difference between having some Sales versus no Sales is huge. The difference is like black and white, or from zero to one
• If you don’t have Sales yet, then you need to prove how you’ll get some
• Cashflow is critical
• Marketing is expensive
• Only spend money on things that generate revenue
• Everything that’s measured, gets better. Tell us your key metrics
• When you talk about what your Company does, first set the Context (like “You know when people do so and so? Well, this is like that, but here is how it is different..”)
• Domain Expertise is a key asset, so make sure you are the best on the planet in your market area
• Focus on how you provide a sustainable competitive advantage. Describing what you do is good, but how you do it is better. What matters most is your ‘unfair competitive advantage’
• People are most comfortable making leaps in areas that they know, so, first look for Investors that have relevance, not just those with lots of money