Franz Diekmann

2 days ago, I collected 52 answers about how startup studios attract founders. The top 4 problems mentioned while answering an open question: 1. Hard to find the “true founder material” 2. Studio culture & values fit 3. Hard to engage full-time with founders – lack of founder’s focus 4. Small network to attract founders – either the need to hire outside your industry/niche or inside it I think the answer to the first 3 problems lies in these statistics: – Only 10% of studios (5 answers) work exclusively with second-time founders, those who have tried to build their own companies but failed. 90% are ready to work with first-time founders. It’s usually hard to expect (or at least) test grit, perseverance, high level of commitment & risk tolerance in first-time founders. There are two ways: 1. Either you find ways to attract experienced entrepreneurs despite adverse selection (founders will be inclined to launch their own companies independently if a studio can’t provide a no-brainer deal) or 2. You turn the weakness (first-time founders) into your strength, allowing current full-time employees to test new business ideas with your support without the risk of losing jobs and becoming full-time co-founders only after validation and substantial revenue. DQventures is a good example. Suppose you’ve decided to focus on second-time founders. How will you seek them? Grant Morgan suggested one interesting idea for our (potential) future marketplace of venture studios & founders: “To target founders of companies that shut down or got acqui-hired recently. Founders that haven't been successful, but who have lived the startup lifecycle are great in our opinion, and there are / will be more of them than ever over the next couple of years following ZIRP (zero interest rate policy) environment where many companies raised too much and/or at valuations that their companies will never grow into, but the experience these founders have is very valuable, and they're often hungrier having tasted some level of success already.” – 73% of studios consider partnering remotely with candidates from their country. 52% consider co-founders in other countries as well. Yesterday, while discussing with my partner ideas around the marketplace, we thought that as our first MVP, there could be a job fair online conference where some studios will pitch to potential co-founders. 1. Do you think it’s a good idea? 2. Would you pitch to attract candidates (for free or for the success fee? Let me know in the comments, and if we decide to organize the event, I will invite you.

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In the eyes of a VC, which is the most important factor when evaluating an investment in a startup? The answer is clear (and predictable): Team, Team, Team Why? A great team can overcome any challenge, whether is related to the Business Model, Technology, Market, or any other. Thank you Ilya Strebulaev for sharing this survey led by Stanford University Graduate School of Business in which 500 VCs participated.

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Venture Studios vs Search Funds How are they different? And what does each model offer? P.S. In the next 30 days I’ll be comparing the venture studio model to venture funds, accelerators, incubators, private equity funds, search funds… (All in 1 post) In case of interest, follow me (Matthew Burris) as I share daily studio insights, and comparisons

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Can you describe your product in one compelling sentence? Practice until you can. 𝗜 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗽𝗶𝗰𝘁𝘂𝗿𝗲 𝘁𝗵𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆 𝗶𝗻 𝗺𝘆 𝗺𝗶𝗻𝗱. 👉 Many founders I talk to, try this and fail. Often, even after a few minutes I still wouldn't know what they do if someone asked me at that moment. 🤔 👉 When you first meet an investor, you need to be able to describe what your product does in one compelling sentence. 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗲 𝘁𝗵𝗶𝘀 𝘀𝗲𝗻𝘁𝗲𝗻𝗰𝗲 𝗹𝗶𝗸𝗲 𝗰𝗿𝗮𝘇𝘆! 🏋️ What is your one sentence? How long did you practice it? #Startups #Communication #VentureCapital --- Beyond Tomorrow: We invest in founders who change the way we live and think. Be part of tomorrow! 🚀

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