<\/p>\n
One of the hardest things to do when you\u2019re the founder of a startup is gain traction and funding for your company. The marketplace is crowded and investors are inundated with requests. With so much competition, how can you separate from the crowd?<\/p>\n
One way is to get rated by Oddup, a research platform that rates startups the same way equity research analysts rate and recommends the shares of publicly listed companies. Odd has seen tremendous success, closing a $6 million Series A round in the spring. For founders looking to get on Oddup\u2019s radar, CEO James Giancotti reveals some factors the company looks at when considering whether to rate new startups. Not only does Oddup look at the founders when building a profile they also analyze the startup\u2019s investors, team, and location.<\/p>\n
Fundraising is an ongoing, labor-intensive process<\/p>\n
During Oddup\u2019s Series A round, Giancotti gleaned valuable insight into the fundraising process he hopes can help founders who are facing the same situation.<\/p>\n
<\/p>\n
\u201cSome people look at fundraising like it\u2019s a hobby. It\u2019s not. You have to put in a lot of time and hard work. You must also answer the question: Who\u2019s going to be your investor? Like any relationship, you want investors you love working with who can also make connections for you and help your business grow to the next level. Be selective and don\u2019t be afraid to say no. We did. It\u2019s not egotistical. It\u2019s about finding the right fit,\u201d explained Giancotti.<\/p>\n
If you\u2019re wondering how to spot good investors, Oddup has you covered with their investor ratings. Giancotti said they look at an investor\u2019s entire portfolio for their rating, not just the shining stars. By going that route, their ratings reflect the whole picture.<\/p>\n
\u201cI like the analogy that you\u2019re only as good as the children you have,\u201d Giancotti said. \u201cIf you have one amazing child and one terrible child, even though you love them all, there\u2019s one that really stands out. All the children \u2013 the startups \u2013 factor into our investor ratings. How many have sold? How many failed? What\u2019s the traction on each of them? You\u2019ve got to evaluate the companies that investors are getting money from.\u201d<\/p>\n
As startups grow, one mistake founders make is focusing on themselves at the expense of the company. When companies have a few employees, the founder\u2019s involvement is crucial. When the team grows to 50 people, smart founders look to hire someone else who can grow the company long after they\u2019ve left the picture. If you\u2019re a founder going through a round of funding, stay focused on your company, not yourself. Giancotti also advocates planning early for how your startup will raise funds. \u201cIf you\u2019re raising money to survive,\u201d he said, \u201cyou\u2019re already out of time.\u201d<\/p>\n
Learn to deal with rejection<\/p>\n
When you\u2019re trying to gain momentum for your startup and get it off the ground, you\u2019ll probably have people tell you that your idea is terrible. When you begin to request funding, you\u2019ll likely face repeated rejection. As Giancotti points out, hitting a wall shouldn\u2019t stop you in your tracks. The successful founders learn to take everything in stride.<\/p>\n
\u201cAs a founder, you\u2019ve got to take criticism as an opportunity to prove people wrong,\u201d he said. \u201cWhen we started pitching Odd, we had a lot of people saying our idea was stupid, it wouldn\u2019t work and that we shouldn\u2019t do it. Now the same people want to invest in us. It\u2019d be easy to be upset with them, but that\u2019s pettiness, and you shouldn\u2019t be petty as an entrepreneur. At least they cared enough to give you an opinion.\u201d<\/p>\n
The mistake most founders make is failing to realize the power of criticism and rejection. When a VC turns you down, it can make you stronger if you channel that emotion into getting better and focus on proving them wrong. But many founders fall into the trap we all do \u2013 dwelling on the negative at the expense of all the positive. To be successful, you must flip the script so that rejection fuels you rather than causing you to stumble.<\/p>\n
Survival of the fittest<\/p>\n
There\u2019s one final key to being a successful founder that isn\u2019t talked about enough. After Oddup\u2019s Series A round, Giancotti was told something that all startup founders need to hear: \u201cYou guys are destined to be a billion-dollar company, but you need to stay alive for it.\u201d Good health, Giancotti knows, is as much about effective stress management as it is keeping your body in shape with regular exercise and a nutritious diet.<\/p>\n
\u201cFounders must focus on both their mental and physical health. This job takes a lot out of you. Even if you\u2019re physically healthy, the mental part can wear you down just as much. You need the right headspace to be successful in the long run,\u201d says Giancotti.<\/p>\n","protected":false},"excerpt":{"rendered":"
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