This Week in Startups

State of early-stage VC, finding PMF, Caroline Ellison testifies & more with Zach Coelius | E1826

Oct 11, 2023

01:10:32

Snipd AI

Zach Coelius, venture capitalist specializing in early-stage investments, joins Jason to discuss the phases of early-stage startups, the state of VC, and answer live questions from the audience. Topics include finding product-market fit, advantages of builder/founder startups, startup soft landings, and the challenges of raising pre-seed funding.

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Quick takeaways

Having a validated idea in a big market and a team with technical expertise increases the chances of securing funding at the seed stage.

Product market fit is demonstrated when customers actively seek out and recommend the product, indicating potential for widespread adoption.

Investors prioritize capital-efficient companies with strong growth metrics and scrutinize the cost of acquiring customers and the long-term value of the business.

Deep dives

Validation and Chops to Build

A key attribute for startups at the seed stage is having a validated idea in a big market and a team with the technical expertise and ability to build the product. This combination of validation and technical skills attracts investors and increases the chances of securing funding.

Validating Ideas: Using Google Ads and Landing Pages

01:46

Finding Product-Market Fit Through Iteration

03:38

Advice on Efficiently Meeting VCs and Pitching Your Startup

01:20

Introduction

2min

Stages of Early-Stage Startups

5min

Lessons on Startup Iteration and Achieving Product-Market Fit

4min

Finding Product-Market Fit and Strategic Pivots

9min

Changes in aqua hire market and discussion on product-market fit

2min

The Battle Against Regulations and Product Market Fit

11min

Validating Ideas through Landing Pages and Ads

3min

Startup Validation, Founder University, and Personal Investments

2min

Discussing Small Check Investments and an Ad for Murrow

3min

10.

Building Relationships and Securing Funding

16min

11.

The Dark Side of Cryptocurrency

13min

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Today’s show:

Zach Coelius joins Jason to discuss the phases of early-stage startups (2:01), break down the state of VC (13:17), answer live questions from the audience (22:36), and much more!

Time stamps:

(0:00) Zach Coelius joins Jason

(2:01) The three phases of early-stage startups

(10:00) Fount - Get $500 off an executive health coach at https://fount.bio/twist

(11:31) Advantages that Builder/Founder startups possess

(13:17) The state of VC: The LP and GP relationship, post-ZIRP, and startup soft landings

(21:10) Coda - Get a $1,000 startup credit at https://coda.io/twist

(22:36) Question: How do you describe PMF in the simplest terms possible

(29:20) Question: How hard is it for first-time founders to raise pre-seed?

(39:46) Miro - Sign up for a free account at https://miro.com/startups

(41:11) Question: I will be in the Bay Area for two weeks… any advice on how to efficiently meet VCs to pitch my startup?

(45:56) Question: What are attributes of companies that are getting funded today? More stable and breakeven? Different industries? What is working today?

(54:49) Breaking news: Caroline Ellison, CEO of Alameda Research testifies for first time today in SBF’s trial

(1:01:49) Cruise robotaxi fleet deployed in San Francisco

Follow Zach: https://twitter.com/zachcoelius

Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four

Apply for Funding: https://www.launch.co/apply

Buy ANGEL: https://www.angelthebook.com

Great recent interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland, PrayingForExits, Jenny Lefcourt

Check out Jason’s suite of newsletters: https://substack.com/@calacanis

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