Demystifying Venture Capital - Chip Hazard - Flybridge - Episode #67

THE FIRST EPISODE OF INVESTORS UNFILTERED!

What do venture capitalists really look for in founders, and how can CEOs build strong, lasting relationships with their investors? In this episode, Chip Hazard, Co-Founder and General Partner at Flybridge, offers an inside look at how VCs think about evaluating founders, funding opportunities, and long-term partnerships. He shares the traits that consistently stand out and explains how these factors matter as much as business metrics, especially in the early stages.

Chip also unpacks the evolution of fundraising, from vision-driven early rounds to later stages where metrics and revenue quality become critical. He reflects on the dynamics of board relationships, the importance of clear alignment on strategy, and why constructive feedback and ongoing communication are vital to scaling effectively.

Takeaways:

• Ambition is Key: Chip emphasizes the importance of passion and ambition in founders. He's looking for those with domain expertise and unconventional thinking.
• Alignment on Strategy: For founders, aligning on strategy with investors is crucial. Chip notes that understanding an investor’s vision for the company can prevent conflicts and foster a positive partnership.
• Ongoing Communication: Chip discusses the importance of consistent communication between founders and investors, particularly in the early stages. Regular check-ins on strategy, challenges, and progress help maintain alignment and support.
• Insightful Board Interactions: The role of a board is to offer perspective and support strategic decision-making. Chip highlights that effective board meetings should align on strategy and not create unnecessary work for the company.
• Balancing Metrics and Vision: As companies evolve from pre-seed to later stages, the focus shifts from purely vision and team to include metrics and financial performance.
• The Value of Constructive Feedback: Constructive, honest feedback is essential. Chip stresses that a good VC relationship involves recognizing challenges, offering guidance, and maintaining trust without dictating to the founder.

Quote of the Show:

• “ Startups win on speed. They don’t have anything else other than the ability to execute fast." - Chip Hazard

Links:

• LinkedIn: https://www.linkedin.com/in/chiphazard/ 
• Website: https://www.flybridge.com/ 

Ways to Tune In:

• Substack: https://notanotherceo.substack.com/
• Spotify: https://open.spotify.com/show/1NQ9oAB2XKlgWeL8iEQXg0 
• Apple Podcasts: https://podcasts.apple.com/us/podcast/not-another-ceo-podcast/id1751581707 
• YouTube: https://www.youtube.com/@NotAnotherCEOPodcast 
• Transistor: https://podcast.notanotherceo.com/ 

#NotAnotherCEO #BusinessSuccess #Flybridge

Chapters:

00:00 Intro

02:11 The Key Traits of Successful Founders

04:09 Assessing Founders Beyond the Pitch

06:04 Stages of Investment and What VCs Look For

15:36 Working with Founders Post-Investment

22:08 The Importance of External Perspectives

25:52 Challenges in Board Dynamics

30:37 Aligning with Venture Capitalists

37:55 Geographical Differences in Startups

40:13 Reflections and Regrets in Venture Capital

43:18 The Passion for Investing

45:47 Outro