

Product, Ambition, Leverage: How Y Combinator companies raise money - bradfordcross
http://www.humbledmba.com/product-ambition-leverage-how-y-combinator-co

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ryanhuff
I am interested in hearing more from YC companies on how they balance the
point about stacking meetings (10-20 per week) with being product focused. To
me, these two objectives seem to be in conflict, and I don't understand how
somebody can stay focused, and lean, while constantly chasing meetings.

What is the secret?

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rantfoil
You stack meetings so that you can get your fundraising done fast. If you're
doing it right, you'll get enough people ready to go that you'll be done in a
few weeks of hardcore meetings. Then you go back to product. This is win-win
for you and your investors.

One buyer equals a ripoff. Many buyers equals a market, and a fair value for
your startup's equity.

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tptacek
Congrats.

How did you create demand/scarcity/leverage in the leadup to getting your
first term sheet?

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rantfoil
Warm intros from influentials. YC helped us a bunch, as did our existing
network.

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dpapathanasiou
The first two (product & ambition) make sense, but leverage is a different
story.

While a low burn rate helps, a VC firm has more staying power over time than a
startup.

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amirmc
General advice I've heard is that you should be out looking for money well
before you need it. Sometimes several months before.

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tptacek
It's going to take many months to go from zero to funded. Deals exist to fall
through.

