Chilli Tips #1

Startup spirit

By 'Those that know'

Welcome to the first of a new series of brief tips outlining entrepreneur etiquette, focusing on both what to say and what not to say when dealing with other parts of the startup ecosystem, including founders, angels, VCs, lawyers, accountants, partners, customers, etc. For this issue, the key tip is:

As a founder of a pre-funding startup, never say to a potential investor or partner "We will quit our jobs and start spending serious time developing the prototype when the term sheets have been signed"

The World has moved on since the boom times of the late 1990s. Investors provide funding to realise a solid, validated startup vision, by polishing the plan and helping to execute it. The founders are expected to have the idea and validate it under their own steam (often creating a demonstrator), using their passion, energy, commitment and risk-taking, entrepreneurial mindset. If founders do not appear motivated to work under their own steam, investors will not be motivated to talk to them. The startup journey is not for everyone, and it may therefore be appropriate to stick with the day job and reflect on the required startup spirit a little longer.

Any comments on this article? Email the editor at Editor@TheChilli.com

© Chilli Publishing Ltd 2003

05JUN2003