909Exec Episode 52: From VC Myths to Founder Realities: Investment Banking Insights with Shawn Flynn
Join host Den Jones as he sits down with Shawn Flynn, Managing Director of SVH Capital and host of the Silicon Valley Podcast, for an eye-opening discussion about the investment landscape. They explore common founder mistakes in fundraising, the evolution of VC trends, and why networking and asking the right questions can make or break your startup journey.
GUEST INFORMATION:
- Name: Shawn Flynn
- Title/Credentials: Managing Director of SVH Capital, Host of Silicon Valley Podcast
- Background: Investment banker focusing on mergers, acquisitions, growth capital and secondary transactions in lower middle market. Nearly 6 years podcasting experience with 280+ episodes featuring unicorn founders and industry leaders [1:53]
- Connect with guest: Silicon Valley Podcast
EPISODE HIGHLIGHTS:
Investment Banking vs. Venture Capital Explained
Clear breakdown of the differences between investment bankers, VCs, and angel investors
Key quote: "Investment bankers, we don't have our own capital, we don't have other peoples that it's designated for us to invest. We go out and we run the transactions, we run the processes" [5:26]
The Funding Landscape Evolution
Discussion of how valuations and funding cycles have changed over the past five years
Key quote: "There was times where you'll hear this valuations five years ago were just inflated. And what happened then was it was very challenging for companies to raise their next round" [6:42]
The Rise of Bootstrap Exits
Trend toward founders selling companies earlier rather than pursuing VC funding
Key quote: "Say you sell a company, you own 10% of a hundred million dollar company, or you own 100% of a $10 million company, you're walking around with a $10 million exit" [9:43]
Common Fundraising Mistakes
The biggest error founders make when seeking investment
Key quote: "The biggest one I want to say is they don't know who they should talk to and they waste a lot of time talking to the wrong people" [14:54]
Research and Due Diligence Strategy
How founders should identify the right investors for their companies
Key quote: "You got to spend time and go, okay, let me go to this VC's website. Okay, who are their portfolio companies?" [19:38]
Founder-VC Relationship Dynamics
Why entrepreneurs need to vet investors as much as they're being vetted
Key quote: "You have to be vetting and screening them as they're vetting and screening you. That's how it has to be" [24:58]
Wisdom from Unicorn Founders
Insights from interviewing successful entrepreneurs
Key quote: "It doesn't matter how many times you pivot if you're pivoting away from what your customer wants" [31:28]
The Secret Sauce of Successful Founders
The most common trait among top performers
Key quote: "The number one trait is that they're able to build rapport with you instantly" [32:56]