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Sith Happens. Keep Pitching.

In the startup galaxy, not every pitch battle ends in a win — but that’s no reason to hang up your lightsaber.

Rejections. Setbacks. Awkward silences after your deck. We’ve all been there. “Sith happens” — and it’s part of the founder’s path toward mastery. The Jedi don’t become Jedi because things are easy. They become Jedi because they keep showing up, even when everything feels like it’s heading for the Dark Side.

In this post, we’ll explore how persistence is the ultimate startup superpower — and why every “no” brings you closer to the investors who believe in your Force.

(Bonus: yes, we’re sprinkling in Star Wars wisdom. You’re welcome.)

The Real Enemy Isn’t Rejection — It’s Giving Up

Building a successful startup isn’t about dodging failure. It’s about committing to the journey when things get hard. For Nevada founders and early-stage builders everywhere, the road to success is rarely a straight shot through hyperspace — it’s more like a dozen detours, a few ship malfunctions, and the occasional run-in with a bounty hunter.

Deals fall through. Product launches stall. Co-founders disagree. Fundraising dries up. And still — the ones who succeed are the ones who persist.

“Startups rarely die in mid-keystroke. They die when the founders give up.”  – Paul Graham, Co-founder, Y Combinator

Just like in the saga, the most powerful founders aren’t the ones with perfect resumes. They’re the ones who adapt, stay focused, and keep pitching.

Melanie Perkins, founder of Canva, and one of the youngest self-made billionaires in the world, received over 100 rejections before securing funding for Canva in the early days.

“The best founders are relentless. Not in an annoying way, but in the sense that they never give up.” – Sam Altman, CEO OpenAI

“When we raised our fund, we probably got over 500 no’s. It’s just like startups. It’s a numbers game. You don’t need everyone to say yes — just a few.” – Elizabeth Yin, GP at Hustle Fund

Trust in the Force (of Momentum)

Every “no” is a plot twist — not a finale.

Momentum is what separates the dreamers from the builders. And in startup fundraising, momentum often comes from one thing: volume. The more pitches you give, the more you build that pitch muscle, and the more chances you create. Especially in early-stage investing, success follows the Power Law — a small number of deals drive most of the returns. For founders, that means a handful of investor conversations might unlock the capital you need to scale.

“We got rejected by everyone. Distributors and investors. For every dollar we raised I had to get 10 rejections.” — Seth Goldman, Co-founder of Honest Tea (acquired by Coca-Cola)

“I had to knock on a lot of doors. 242 investors said no.” — Howard Schultz of Starbucks, in Pour Your Heart Into It (book)

Founders don’t win because of one perfect pitch. They win because they keep showing up. Most early-stage founders pitch 40+ investors before getting a “yes” (DocSend x Harvard, 2021).

It’s not personal. It’s math. And the odds improve the longer you stay in the fight.

Build Your Rebel Alliance

Even Luke needed a crew.

You don’t have to battle the dark forces of startup life alone. Surround yourself with mentors, advisors, investors, and other founders who believe in your mission — and aren’t afraid to challenge you along the way.

Mentored businesses see an average 83% growth in annual revenue, and 70% of mentored startups survive their first five years in business, according to this U.S. study

That’s exactly why StartupNV exists — to surround founders with allies, not gatekeepers. We’re building an ecosystem that turns rejection into redirection and failure into fuel. Whether it’s your first pitch or your fiftieth, having the right allies makes the mission possible.

“If you’re not learning from someone smarter than you, you’re not growing fast enough.” — probably Yoda (or a decent angel investor)

Not learning you are, growing you are not.

Use the Force (a.k.a. Data)

Sure, Luke ditched the targeting computer — but only after he learned how it worked.

In startups, the “Force” is feedback. Founders who listen to tough questions, track their KPIs, and use data to iterate are the ones who level up. There are a lot of resources available on how to identify key metrics in a pitch – such as market size, magnitude of the problem you are solving, pricing model, and valuation. Yet, these are areas that lack in most of the pitches I see. Do you have traction? Revenue? Customers? Those numbers are your most convincing tools in the pitch — use them like a lightsaber: with clarity and purpose. You can show us all the features and buttons of your droid later, not during your pitch. Focus on what matters for investors considering an ROI.

If you are pre-revenue, what customer discovery did you do before and while building? My friend Harold Hughes, founder of BandWagon, would bring physical stacks of customer discovery surveys in his trunk to show investors that they did the work to find out what their customers wanted and what they would pay. That visual proof demonstrates research, intention, and commitment.

“When founders use metrics to tell their story, it changes the conversation from belief to evidence.” – Tomasz Tunguz (VC, Redpoint Ventures)

Every pitch that doesn’t land is actually market research. Every investor who passes gives you a chance to sharpen your story. Every moment you spend refining your deck is a step closer to the one that hits.

Most investors will not provide feedback and insights on why they passed … unless you ask for it. Ask if they’d be willing to provide a few reasons via email or spend 10 on the phone with you providing the reasons they passed and offering advice on opportunities for improvement. Some will, and some won’t. Sometimes, it’s just not the right fit. Sometimes, the investors pass on companies who could have made great returns for them. Sometimes, they pass for the same reasons that the previous ten investors did. Collect feedback and use your discretion on what to apply. 

Identify investors whose thesis you are within and who could be valuable strategic partners if they did invest.

It’s not magic. It’s discipline. Keep pitching.

Nevada: A New Hope

From Las Vegas to Reno to our growing rural startup communities, Nevada’s innovation ecosystem is scaling fast. With new incubators, accelerators, pitch events, and early-stage funds, founders have more opportunities than ever to connect, build, and grow.

This frontier is still forming — and that’s what makes it powerful. Yes, there’s not yet a surplus of local capital. But even in the most promising ecosystems, rejection is part of the process. That’s not a flaw — that’s the game.

In the post-COVID era, geography matters less. More investors are writing checks outside traditional hubs like Silicon Valley — and that opens the door for founders in emerging markets like Nevada. One advantage of building in a nascent-but-rising startup scene? You stand out from the noise. Build relationships early and maintain them … a “no” now might just mean “not yet”.

Do your research. Use data. Get feedback. Then pitch again. The founders who win are the ones who stick with it. Who refine the message, improve the product, and pitch again. And again. And again.

Final Transmission

Whether you’re raising your first round or rebuilding after a crash landing, remember this:

Sith happens.
Keep pitching.
Keep learning.
Keep going.

Your next breakthrough — your champion investor, your breakout user, your market moment — might be just one “no” away.

May the funding (and the Force) be with you.

By Madeline Feldman

* This is a fan-made blog and is in no way affiliated with, sponsored by, or approved by Lucasfilm, Disney, or the Galactic Empire. Some images were generated with AI or borrowed from the meme galaxy far, far away. I don’t own the rights to Star Wars—please don’t send bounty hunters.

Sith Happens. Keep Pitching. Read More »

How To Craft A Winning Go To Market Strategy For Your Startup

What is a Go-To-Market (GTM) Strategy?

A go-to-market strategy is your startup’s plan to introduce a product or service to the right audience with the right message at the right time. It’s about more than just launching—it’s about building traction, growing awareness, and creating a repeatable path to revenue.

Think of it like this: a GTM strategy helps you avoid shouting into the void. It’s a framework for getting in front of the people who actually care, in a way that actually works.

Whether you’re entering a new market, releasing a new product, or repositioning an old one—your GTM plan is how you bring it all together.

Why You Need a GTM Strategy

The #1 mistake we see early-stage founders make? Building something cool… and assuming people will just show up.

They don’t. A GTM strategy saves you from:

  • Wasted budget on the wrong channels
  • Talking to the wrong audience
  • Confusion inside your team
  • Launching before you’re ready

It forces clarity. It answers:

  • Who are we serving?
  • Why do they care?
  • How will they hear about us?
  • What will they do next?

Key Elements of a Go-To-Market Strategy

You don’t need a 50-page slide deck. Just cover these essentials clearly and honestly:

1. Target Customers

Who are you building this for—really? Define your ICP (ideal customer profile) as specifically as you can. If you say “anyone,” your strategy’s already off track.

2. Value Proposition

Why does this matter to them? What pain are you solving? What’s your “so what?”

If you can’t say this in one sentence without jargon, go back to the whiteboard.

3. Messaging

Once you’ve nailed the value prop, translate it into messaging that resonates. This isn’t just taglines—it’s how you talk across your site, pitch deck, emails, ads, and demo.

4. Channel Strategy

Where will you find your customers, and how will you reach them?

Your choices might include:

  • Organic content
  • Paid ads
  • Cold outreach
  • Partnerships
  • SEO
  • Events

Choose a few—test, then double down on what works.

5. Customer Journey & Activation

Map out the steps from “I’ve never heard of you” to “I’m a happy customer.” Where are the drop-offs? What do you need to improve or automate?

6. Pricing & Offers

How will you package and price the product? What’s the first thing you’ll ask someone to buy—or try? It should feel low-friction and high-value.

7. Metrics That Matter

Track the right things—not just traffic or impressions, but:

  • Conversion rate
  • CAC (customer acquisition cost)
  • LTV (lifetime value)
  • Retention
  • Activation rate
8. Number of Qualified Leads

This one deserves its own line:

If your top-of-funnel is full of the wrong people, it doesn’t matter how clever the rest of your strategy is.

Make sure your early messaging and targeting are attracting the right prospects. If you’re not getting qualified leads, revisit everything upstream.

Final Thought: Your GTM Strategy is a Living Thing

This isn’t a “set it and forget it” document. Your GTM evolves as you learn more, as the market shifts, and as your product grows.

The goal is simple: put something structured in place, run experiments, measure results, and keep improving. The sooner you find a repeatable motion that works, the sooner you’ll build momentum.

How To Craft A Winning Go To Market Strategy For Your Startup Read More »

What Founders Should Know About Patents

What Founders Should Know About Patents 

Hot Takes from FounderNV Master Glass Session “Myths & Realities of Patents” with Demetris Paraskevopoulos

FounderNV’s Master Glass speaker series is designed to bring world-class experts to share valuable knowledge with local founders and investors in Nevada’s startup ecosystem. These sessions give attendees practical insights into the challenges of building early-stage startups, debunk common myths, and create space for enriching discussion — all over a glass of wine, a cold brew, or a mocktail (like our faves from local startup Lowtail Mocktails).

In March, FounderNV hosted Demetris Paraskevopoulos at Woven Workspaces in Las Vegas. Hailing from Greece, Paraskevopoulos is a global patent strategist, startup investor, and intellectual property (IP) expert specializing in high-tech sectors. He has worked closely with early-stage startups to help them build patent portfolios that are not only defensible, but valuable. 

This session included expertise and discussion on:

✅ Patent strategy

✅ The value of patents

✅ When to file a patent application

✅ What patents mean for investors

Drawing from decades of experience, Paraskevopoulos brings more than legal theory to the table — he helps founders focus on what’s worth patenting and how IP can support business outcomes. During his session, titled “The Myths and Realities of Patents,” he offered a frank take on where most startups go wrong with IP – without the sugar coating.

Did you miss this Master Glass? Not to fret, we’ll share some of Demetri’s insights and hot takes in this blog.

What is Patent Strategy?

“Not every invention should be patented. The patent portfolio should be considered what the military would call a perimeter defense, not a single patent.” 

For founders, patenting extends beyond securing intellectual property. It requires strategy – being intentional with which inventions you patent, thoughtfully structuring your portfolio, and analyzing how each patent contributes to your business goals. 

Companies with strong protection often hold multiple active patents across all geographical markets they currently- or plan to- operate in, forming a defensive moat. But not every invention is worth the investment. “Some of them are redundant or frivolous,” Paraskevopoulos explained. “So, how you put together the right portfolio from an economic point of view is very important.”

A solid patent strategy balances technology, legal, and business factors. It starts with getting the right inventors listed – including everyone who contributed to the invention, not just those with seniority. It also involves a thoughtful approach to the tradeoff: although (granted) patents offer 20 years of protection, each application demands time, money, and resources. And, most importantly, a patent is not required to bring a product to market. Founders planning their patent strategy often ask, “Is this worth patenting?” This strategic thinking is the first step to smart patent strategy.

The Value of Patents

“Patents are the dominant value of companies of today.”

When patents are high quality and aligned with business goals, they can offer massive strategic value. As Paraskevopoulos put it, “In essence, what the government has given you is the exclusive right to threaten competitors –  [the right] to sue them for patent infringement if they use your invention.” This right can translate into royalties, licensing fees, or litigation leverage — forming a powerful safeguard around a company’s most valuable intangible assets.

Most patents filed by startups and small firms have defensive value — protection against copycats or future litigation. But the real treasure lies in assertive value — when a company successfully asserts its patent rights against a larger infringer.

“If the defensive value of the patent is in the millions,” Paraskevopoulos explained, “the assertive value can be in the hundreds of millions.” That’s a tenfold return, a benefit often overlooked by founders and investors alike.

When Should You File a Patent?

Before filing a patent, it’s natural to want to share your great, new idea with the world. However, premature disclosure can jeopardize your ability to protect your intellectual property. As Paraskevopoulos warns, you should keep the “how” of your product a secret until it is protected, stressing, “You can disclose what your invention is all about, but not the ‘how.’”

Timing is everything when filing a patent. “If you disclose your invention before you file for a patent, you lose the right to file a patent unless the disclosure is under a nondisclosure agreement,” he explained. In other words, if your invention becomes public before you secure protection, you may lose the opportunity to fully safeguard your intellectual property.

If you’re not ready to file a full patent but need to move quickly, you can submit a provisional application. Provisional applications give you a priority filing date and temporary protection for your asset. Provisional patents are not a patent alternative, as you must file a full, non-provisional application within 12 months to preserve your rights.

The takeaway? File early, file smart, and don’t overshare until your intellectual property is protected.

What Patents Mean for Investors?

Patents are a key part of a company’s valuation and are often a make-or-break factor during due diligence. Protected assets can assure investors that their investments will be backed by something defensible. However, it is important to consider the quality of a company’s patents when deciding to invest. A startup’s patent portfolio can be a valuable asset, sometimes serving as the only significant asset. 

However, not all patents are created equal. Demetris stressed that “four out of five patents that people have invested money in have no value.” Investors must consider the quality of a company’s patents – not just the quantity. This means that patents that are strategic, defensible, and economically meaningful will provide investors with the most confidence in a startup.

Strong patents come with an extra benefit through litigation investments. As Paraskevopoulos shared, “There are huge billion-dollar companies that invest in litigation outcomes, including patent infringement litigation.” Along with protecting intellectual property, patents can unlock new opportunities for funding – ultimately leading to a successful business outcome.

Takeaways

The main takeaway from Demetris Paraskevopoulos’ FounderNV Master Glass is that patents aren’t just legal tools, they are strategic assets in a business’ entrepreneurial landscape. Founders and investors must ensure that a company’s patents align with their business goals by investigating patent strategy, financial timing, and the value of patents. This means asking the hard questions early: Is this worth patenting? Does this align with our business goals? Will this hold value in the long term? Securing your assets with a thoughtful, reliable patent strategy can lead to a competitive advantage, investor confidence, and even extra financial returns.

Special thanks to Demetris Paraskevopoulos for sharing his deep expertise and practical insights to help founders and investors understand the real power of patents!

Recapped for your reading pleasure by Izabella Hedjazi

What Founders Should Know About Patents Read More »

The Startup Deep Dive Playbook: Key Questions for Founders & Investors

At StartupNV, we’ve sat through thousands of startup pitches, hosted countless due diligence sessions, and invested in dozens of early-stage companies. Along the way, we’ve honed a list of essential questions that help us evaluate everything from market opportunity to execution risk.

Now, we’re sharing those questions publicly — not just to help investors sharpen their evaluation process, but to help founders walk into every pitch meeting fully prepared.

In this guide, you’ll find many of the exact questions we ask during founder pitches and deep-dive sessions, organized by category. Whether you’re an investor looking to improve your diligence process or a founder gearing up to fundraise, these questions will help you prepare to cut through the noise and focus on what really matters. 

Ready to separate the signal from the noise?

Market & Competition

  1. Describe your Ideal Customer Profile? What pain points make them ideal for your solution?

  2. How did you validate that your ICP exists in sufficient numbers to support your growth plans?

  3. You mentioned your SAM is $X. What specific segment are you targeting first, and why did you choose that entry point?

  4. Which competitors worry you the most, and what prevents them from copying your approach?

  5. What are the top 3 obstacles to customer adoption, and how are you addressing them?

  6. How has the market changed in the last 12 months, and how might it evolve in the next 24?

  7. How quickly do you feel you need to scale given the market and competition? How do you intend to do so?

 

Business Model & Unit Economics

  1. Walk us through the unit economics of a typical customer acquisition and lifetime value?

  2. at what scale does your business model become profitable? What are the key assumptions?

  3. How do you plan to reduce customer acquisition costs over time?

  4. What’s your pricing strategy, and how did you validate that customers will pay these amounts?

  5. Are there network effects or economies of scale in your model?

Traction & Metrics

  1. Of your current users/customers, what percentage match your ICP, and how do they compare to non-ICP customers in terms of retention and revenue?

  2. Of your current users/customers, what percentage are actively engaged with your product? How many are paying vs non paying?

  3. What’s your monthly burn rate, and how long will your current/requested funding last?

  4. Which metrics do you believe best indicate future success for your business?

  5. What’s been your biggest go-to-market surprise or learning so far?

  6. What percentage of your growth is organic vs. paid?

Team & Execution

  1. What makes your team uniquely qualified to solve this problem?

  2. What key hires do you need to make in the next 12 months?

  3. How do you plan to build and maintain your company culture as you scale?

  4. What keeps you up at night about the business?

  5. Have you or other members of the founding team personally invested money into the business?

  6. What key execution risks could derail your next 12 months?

Technology & Product

  1. What are the biggest technical risks in your roadmap?

  2. How defensible is your technology/solution? What’s your IP strategy?

  3. How do you prioritize your product roadmap? What’s been left out and why?

  4. What’s your backup plan if key technical assumptions prove incorrect?

 

Market Timing & External Factors

  1. Why is now the right time for this solution?

  2. How dependent is your success on external factors (regulation, technology adoption, etc.)?

  3. How would an economic downturn affect your business and growth plans?

  4. What industry trends are you betting on or betting against?

Exit Strategy & Return Potential

  1. What are exit paths for this business? Can you give examples of similar exits in your space?

  2. What are the typical revenue multiples for acquisitions in your industry? How do you see those applying to your business?

  3. Given your current valuation and the investment needed to reach exit, what size of exit would you need to generate venture-scale returns?

  4. How do you see your business fitting into the strategy of potential acquirers? Who are they?

  5. What metrics or milestones do you think would make you attractive for an IPO or acquisition?

  6. How do you balance building for sustainable growth versus positioning for an exit?”

  7. What’s your perspective on the venture model and the need for outlier returns to drive portfolio economics?

Use of Funds & Growth Strategy

  1. How specifically will you use the funds you’re raising?

  2. What key milestones will this funding help you achieve?

  3. What’s your fundraising strategy beyond this round?

  4. How do you plan to scale your team and operations with the funding?

  5. Have you raised before? If so when, from who, and at what valuation?

Follow-up Questions for Common Responses

  1. If suggest modest exit multiples: How would that exit value translate to returns for early investors given the likely dilution path?

  2. Haven’t researched exits: Which recent exits have you studied? What made them successful?

  3. If focus is only on acquisition: What would it take to build this into a standalone public company?

Red Flag Responses to Watch For

  1. If they deflect on competition: Which existing solutions do your target customers use today? How do they serve your ICP specifically?

  2. If no competition matrix: Could you map out your key competitors on a feature/capability matrix?

  3. If traction seems low: What gives you confidence in your product-market fit?

  4. If team seems incomplete: How are you handling [key missing function] currently?

  5. If financials are vague: Can you share your current gross margins and how they might evolve?

Armed with these questions, you’re ready to dig deeper, challenge assumptions, and uncover the insights that separate future successes from fleeting trends. Don’t just listen to the pitch; interrogate the business model, assess the team’s capabilities, and stress-test the growth strategy. By asking the right questions, you not only protect your investment but also empower founders to refine their vision and build stronger, more resilient companies. Because, ultimately, successful investing isn’t just about finding unicorns; it’s about partnering with visionary teams who have the answers—or are willing to find them.

By the StartUpNV & FundNV Team

The Startup Deep Dive Playbook: Key Questions for Founders & Investors Read More »

The Do’s and Dont’s of Pitching To Your Drunk Uncle At Thanksgiving

 

Thanksgiving is a time for gratitude, turkey, and… unsolicited advice from family members. As you pass the stuffing, the inevitable happens: your drunk uncle asks, “So, what exactly is this startup thing you’re doing?” Suddenly, you’re faced with the challenge of explaining your big idea to someone who thinks TikTok is just the sound a clock makes.
Whether you’re eager to share your entrepreneurial vision or simply trying to survive the dinner table discussion, there’s a right way—and a very wrong way—to navigate this conversation. In this blog, we’ll explore the do’s and dont’s of pitching your startup during Thanksgiving, ensuring that your business dreams don’t get roasted alongside the sweet potatoes. So, grab a glass of wine (but maybe not as much as Uncle Joe’s had), and let’s dive in!

Do’s:

  • Keep it light and simple.

Start with a casual approach. “Hey, Uncle Joe, I’ve got this cool idea…”

Keeping it conversational while approaching the subject is key to grabbing his attention. Your uncle doesn’t need a deep dive into your business plan or a lecture on market disruption. Use simple, relatable language to describe your idea. Instead of saying, “We’re leveraging AI to disrupt the logistics industry,” try, “We’re building a smarter way to get packages delivered.” Clear and concise explanations will resonate more than buzzwords. Remember to be prepared! StartupNV’s Executive Director, exited founder, and seasoned investor, Jeff Saling advises: “Perfect your elevator pitch. Attention spans will be especially short and split…. and have the deal docs and wiring instructions ready to send from your phone.”

  • Appeal to his interests.

Find something he can relate to.

Find a way to tie your startup to something your uncle cares about or knows. If he’s into sports, explain how your idea could help fans. If he’s a foodie, mention its potential impact on restaurants. Making it relatable will keep his attention and make your pitch more memorable.

  • Flatter him (a little).

Drop lines like, “You’ve always been good at spotting great ideas!”

Nobody likes a know-it-all, especially your drunk Uncle Joe. So, right when he seems to be dozing off from the conversation, ask him what he thinks of your ideas and leave space for him to share his. Bouncing ideas off of one another can make the exchange feel more natural and not one-sided. Make sure to listen to his ideas and “take” them seriously.

  • Let him know others are excited.

Tell him why everyone is going for seconds.

From seasoned investor, Joshua Curtis, here is some advice on showing excitement and spiking curiosity if your uncle is actually a savvy investor.

“As investors, we know that you love your stuffing, if you didn’t you wouldn’t be crazy enough to be a founder, but we want to see that everyone loves your stuffing too. Show us the demand! If you’re pre-revenue show us that you’ve done in-depth market research and have feedback from potential customers that they would purchase your product at your price. If you have revenue, show us metrics that indicate positive growth and adoption. Telling us your stuffing is the best is one thing, showing us through consumer interest and adoption is the best way to get us to grab our forks and get in line.”

  • Stay patient and flexible.

If he derails the conversation, gently steer it back or know when to pause.

With so much good food and good company, the conversation can certainly change every now and then. It’s important to know when to steer the conversation back to the topic and when to let the conversation flow on to the next, this can also be a chance to indulge in a second slice of pumpkin pie.

Don’ts:

  • Don’t get overly formal.

It’s Thanksgiving, not Shark Tank. Relax and match the vibe.

Pitching can be daunting whether it’s a room full of investors or during a networking event, but remember that this is a relative! There’s no need for a blazer, a slideshow, or corporate jargon about market penetration or scalability. Instead of diving into a stiff elevator pitch as though you’re talking to venture capitalists, take a moment to read the room. Your audience is family, not investors, and the Thanksgiving table is meant for laughter and connection—not a business boardroom.

  • Don’t turn it into a one-sided monologue

There’s nothing worse than feeling like you’re stuck in a never-ending lecture, especially at the dinner table.
If you dominate the conversation with a long-winded explanation of your startup’s mission, vision, and market potential, your uncle—and everyone else within earshot—might start tuning out. Thanksgiving is about sharing, not showboating. Instead, keep your responses brief and conversational, and let your uncle ask questions. The discussion will feel more interactive and less like a TED Talk no one asked for.

  • Don’t argue or get defensive.

If he says, “That’ll never work,” thank him for his thoughts and move on.

Chances are, your uncle might be unfamiliar with how your industry works but as your relative who wants to look out for you, he might be prone to pointing out the risks of your ideas instead of highlighting the positives. Make sure to avoid being defensive and instead, remind him that with great risk comes great reward.

  • Be careful not to over-stuff the offer just because he’s family. .

Know what your Ask is and be prepared with the deal terms you’re willing to offer ahead of time. You can find other ways to emphasize why this opportunity is special (early access to a high-potential investment).

Let’s hear from investor and StartUpNV’s Vice President, Madeline Feldman.
“Don’t promise equity in the family heirlooms as part of the deal, or over-promise equity just because you’re family. Blood may be thicker than water, but it’s not thicker than gravy. Remember to keep plenty of gravy for yourself and future investors. You can always share your riches with your family once you have them … (in cash!).”

  • DON’T Forget the Real Reason for Thanksgiving

At the end of the day, Thanksgiving is about gratitude and togetherness, not pitching your startup.

Be thankful that you have someone to pitch to, the opportunity to innovate, and a table full of great food to eat. If the conversation starts to derail or feel tense, pivot back to the holiday spirit. Approaching these moments with humor, patience, and perspective can turn even the most chaotic Thanksgiving pitch into a story worth sharing next year. You can hope, but don’t expect Uncle Joe to become your next investor.

Conclusion

Uncles are often wild cards; a single wrong move could turn your pitch into a heated debate about cryptocurrency at the kid’s table. As tempting as it may be to pitch your next big idea to your drunk uncle at Thanksgiving, it’s important to strike the right balance between enthusiasm and respect for the holiday setting. Remember, building support for your idea is a marathon, not a sprint, and the holidays are best enjoyed with laughter, good food, and meaningful connections.

Save the full pitch for a more appropriate time. Perhaps… during StartUpNV’s favorite day of the week, Pitch Day! Pitch Day happens every other Wednesday at the International Innovation Center in Downtown Las Vegas, and virtually from anywhere in Nevada,at 2pm. Catch the next one on December 4th, @ 2pm. You can also apply to pitch here.

The Do’s and Dont’s of Pitching To Your Drunk Uncle At Thanksgiving Read More »

Founder Frights: 5 Kinds of Spooky Characters That Might Give You a Scare in the Startup World

1. “Zombie Startups: When It’s Time to Let Go”

Zombie startups shuffle through the world, neither dead nor alive, but definitely not thriving. If your startup is stuck in perpetual stagnation, it might be time to reconsider its future before you become one of the walking dead founders.

Zombie startups may still have some customers and are technically running, but they’re not growing or evolving. These companies often drain founders’ energy and resources without providing enough momentum to scale or succeed and are a major pain for investors looking to close out & right off the corpse. Learn more about key signs, how to call time of death on a startup, and stories of a few who double-tapped on the pivot to avoid becoming walking dead here.

Advice: Some rules of ZombieStartupLand to take with you…

Rule #7: Travel Light
“Heavy burn rates? Trim the fat—only the essentials survive the apocalypse.”

Rule #17: Don’t Be a Hero
“Sometimes the best move is to step back from your zombie startup and walk away.”

Rule #18: Limber Up
“Always warm up. You never know when you’ll need to pivot… again.”*

Rule #22: When in Doubt, Know Your Way Out
“Have an exit strategy ready—zombie startups are known to hang on… and on… and on…”

Rule #31: Check the Back Seat
“Watch out for co-founders who suddenly resurface in zombie mode.”

2. “Beware of Vampire Investors: Avoiding Bloodsuckers in the Startup World”

Just like a vampire needs fresh blood, some investors seem to feed on your hard work. They’ll offer capital but expect unreasonable control in return. Vampire investors drain more than they give—taking control of your company, demanding high equity and decision making power,, or offering unfavorable terms, with little strategic or network value, and not enough capital to justify the terms.Founders often accept blood-sucking terms out of desperation, but it can lead to a loss of control over the company and ultimately, its mission. Founder-friendly terms are one of the best indicators that your investors will be good team players in the light of day.

Key Signs:

Excessive Equity Demands: Investors asking for too much equity for the amount of capital they’re providing.

Overbearing Control Rights: Investors wanting too much control over board decisions or strategic direction, limiting founder autonomy.

Lack of Value-Add: They offer money but little to no strategic value, connections, or mentorship.

Advice:

Negotiate Smartly: Always seek a balance between capital and control. Try to negotiate terms where equity and decision-making remain in the hands of the founding team.

Choose Investors Carefully: Look for investors who offer more than just money. Opt for those who bring industry expertise, strategic advice, or valuable networks to the table.

Get Legal Advice: Have a good lawyer review term sheets and contracts. Don’t sign anything in haste just because you’re eager for funding. Once you let one blood sucker into your house… it’s hard to stop the bleeding.

3. “Frankenstein Founders: Piecing Together a Misfit Team”

Creating a team that doesn’t fit can lead to chaos, just like Frankenstein’s monster was a patchwork of mismatched parts. Building a startup is like assembling your dream team. But if you piece together co-founders and employees who don’t align in vision, skills, or values, you might end up with a monster instead of a thriving company.

Key Signs:

Conflicting Visions: Co-founders or key team members disagree on the long-term direction of the company.

Skills Gaps: Team members have overlapping strengths but leave critical skill gaps (e.g., no marketing lead in a product-heavy team).
Cultural Mismatch: A lack of shared values or communication styles can lead to misunderstandings and poor decision-making.

Advice:
Founders’ Alignment: Co-founders need to have clear, aligned goals from the outset. This includes both the vision for the company and the personal goals of each founder.

Complementary Skills: Build a team with diverse, complementary skill sets. Your early hires should fill gaps in your expertise, not duplicate strengths.

Culture Fit: Don’t underestimate the importance of cultural fit. Even if someone is highly skilled, if they don’t mesh well with your company culture, it can lead to long-term problems.

4. “The Curse of the Phantom Co-Founder”

A phantom co-founder is someone who vanishes when things get tough, leaving the remaining founder(s) to carry the weight of the company on your own. This can cause burnout and resentment, and damage the startup’s chances of success.

Everything seemed great in the beginning, but as soon as the going got tough, your co-founder disappeared like a ghost in the night. You’re now left haunted by their absence, but not the absence of their equity stake, while trying to run the startup alone.

Key Signs:

Lack of Commitment: Early signs might include a lack of follow-through on tasks, frequent unavailability, or a lack of enthusiasm for the company’s growth.

Avoiding Tough Decisions: When difficult challenges arise, the co-founder is nowhere to be found.

Focus on Other Projects: The co-founder may be more invested in side projects or their day job, treating the startup as secondary.

Advice:

Define Roles Early: Clearly define each co-founder’s role and responsibilities from the start. Everyone should know what’s expected of them.

Founder Agreements: Have a formal founder agreement in place that outlines ownership, contributions, and what happens if someone leaves.

Frequent Check-Ins: Regularly assess each other’s commitment and engagement levels. If a co-founder seems disengaged, address it early to avoid larger issues down the line.

5. “Don’t Get Trapped in the Haunted House of Bad Contracts”

Once you’re inside a bad contract, it can feel like you’re stuck in a haunted house with no escape. Bad contracts can haunt you long after they’re signed, with hidden clauses or unfavorable terms locking you into detrimental deals. This can apply to partnerships, vendor agreements, and even investor contracts.

You signed what seemed like a straightforward deal, but now you’re trapped by spooky clauses and unforeseen consequences. Don’t let your startup become the latest victim of haunted contracts!

Key Signs:

Overly Complex Terms: The contract is filled with confusing legalese that makes it hard to understand what you’re really agreeing to.

Hidden Clauses: There are clauses that grant excessive control or penalties that seem unreasonable or hidden in the fine print.

No Exit Strategy: The contract doesn’t allow for an easy way out, leaving you locked in regardless of future changes in circumstances.

Advice:

Read Every Word: Never sign a contract without thoroughly reading and understanding it, even if it feels tedious. Key details are often hidden in the fine print.

Consult a Lawyer: Always have a lawyer review any important contract, especially when it comes to equity, IP ownership, or long-term partnerships.

Negotiate Exit Clauses: Try to negotiate terms that allow you to exit or renegotiate the contract if things don’t work out as planned

Written by Madeline Feldman 

Founder Frights: 5 Kinds of Spooky Characters That Might Give You a Scare in the Startup World Read More »

When to Call Time of Death & How to Revive: Real Stories of Startup Pivots and Comebacks

Every founder dreams of success, but the harsh reality is that approximately 90% of startups fail. While failure isn’t always preventable, recognizing the warning signs early can help you either pivot successfully or make a dignified exit before exhausting all your resources.


The Tell-Tale Signs of a Failing Startup


1. Chronic Cash Flow Problems
You’re constantly worried about making payroll
Runway is shrinking with no clear path to extending it
Customer acquisition costs remain stubbornly high with no improvement in sight
You’re considering taking on high-interest debt just to keep the lights on


2. Market Indifference
Users aren’t as excited about your product as you are
Customer feedback is polite but noncommittal
Free users aren’t converting to paid customers
Your target market requires extensive education about why they need your solution

Turning Setbacks into Success: Inspiring Startup Pivot Stories

Every founder dreams of a successful startup, but statistics are sobering: nearly 90% of startups fail. Failure isn’t always avoidable, but noticing the warning signs early can open doors to a successful pivot or a strategic exit that preserves resources and reputation. Here are powerful stories of startups that turned things around with strategic pivots, and key takeaways for every founder.

The Instagram Transformation

Instagram, now a $1 billion photo-sharing app, began as Burbn, a complicated check-in app resembling Foursquare. But founders Kevin Systrom and Mike Krieger realized something critical from their users’ behavior: people loved the photo-sharing feature far more than any other. Here’s how they pivoted to success:

  • User-Centric Analysis: The team noticed users weren’t engaging with most of Burbn’s features. Instead, photo-sharing and filter options drove the most activity.
  • Bold Simplification: They stripped Burbn down to a single function—photo sharing—and enhanced the experience with easy-to-use filters and a clean, simple interface.
  • Results: Within weeks, Instagram saw massive user growth, catching Facebook’s attention and leading to a $1 billion acquisition in just 18 months.

Slack’s Leap from Gaming to B2B Communication

Slack is another powerful pivot story, emerging from the failure of a gaming company called Tiny Speck. Tiny Speck’s game, Glitch, struggled to gain traction despite millions in investment. But the company’s internal communication tool, created to help the team collaborate, revealed an unexpected potential:

  • Discovery of a Hidden Asset: While Glitch failed, the internal chat tool solved a pain point familiar to many companies.
  • Repackaging for a New Market: The tool became Slack, addressing a universal business need for efficient communication.
  • Results: Slack became one of the fastest-growing B2B companies, reaching a valuation of $7 billion within five years.

How to Execute a Strategic Pivot: Real-World Lessons

Stitch Fix’s Playbook for Market Expansion
Stitch Fix started as a styling service for women but scaled by carefully testing and entering new markets. Here’s how they grew beyond their initial niche:

  • Testing New Markets: They started small, piloting men’s clothing by using existing systems to gauge interest.
  • Gradual Expansion Strategy: With limited initial inventory, they gradually rolled out to select customers, using a waitlist to build demand.
  • Leveraging Core Strengths: Stitch Fix applied their algorithm-based styling to new segments while maintaining high-touch customer service.
  • Metrics and Feedback: Stitch Fix continuously refined its offerings based on customer feedback and tracked success through measurable metrics.

This deliberate, data-driven approach allowed Stitch Fix to expand to men’s, kids’, plus-size, and home goods markets, transforming it into a multi-billion dollar business.

Netflix’s DVD-to-Streaming Evolution

Netflix’s pivot from DVDs to streaming provides a masterclass in transition management. Although not a startup at the time, Netflix’s strategy highlights key steps for founders looking to pivot:

  • Parallel Operations: While DVDs remained profitable, Netflix gradually developed its streaming platform, using DVD rental data to shape streaming offerings.
  • Transparent Communication: Netflix was clear with users about the future, openly sharing updates and changes.
  • Strategic Investment: They built up streaming technology while still benefiting from DVD revenue and invested heavily in content licensing.

Today, Netflix’s streaming service dominates, but it was their careful pivot strategy that helped them make this transition smoothly and effectively.

Reid Hoffman’s Journey from SocialNet to LinkedIn

Reid Hoffman’s story shows that even a failed startup can provide the foundation for future success. Before founding LinkedIn, Hoffman launched SocialNet in 1997, aiming to connect people for both dating and professional networking. SocialNet failed within two years due to several factors:

  • Lack of Focus: SocialNet tried to be both a dating and professional networking platform but lacked a clear direction.
  • Timing and Execution: SocialNet was ahead of its time and couldn’t find traction.
  • Takeaways: From this experience, Hoffman learned the value of focus, timing, and the need for clear audience targeting.

LinkedIn went on to become the leading professional network, and SocialNet’s lessons were instrumental in this success.

Key Takeaway: Failure as a Learning Opportunity

Every failed startup provides lessons that can shape the next venture. Whether by pivoting smartly or learning from what didn’t work, the path of entrepreneurship is rarely straightforward. Embrace each lesson, use your insights, and remember—failure often marks the beginning of a new journey toward a much bigger success story

Owner Jeff Saling start up nv 1

Written by Jeff Saling 

When to Call Time of Death & How to Revive: Real Stories of Startup Pivots and Comebacks Read More »

Team Motivation: An AI + Human Perspective

Team Motivation: An AI + Human Perspective 

Today’s question is, how do we maintain team motivation during turbulent times?

In this blog by Las Vegas based FarsideHR Solutions, we’re going to take a modern approach to this age-old question. First we’re going to ask ChatGPT to summarize the basics. Then we’re going to add human experience and insights.

As a husband and wife CHRO and organizational effectiveness consulting duo, we’ve helped 70+ private and public companies solve for scaling, efficiency, productivity and performance.

Let’s see how AI + human experience tackles this perpetual management challenge.

ChatGPT:

Maintaining team motivation during turbulent times requires a multifaceted approach centered on clear communication, support, and adaptability. Firstly, ensure open and transparent communication. Regularly update the team on the situation, goals, and any changes, fostering a sense of security and trust. Encourage team members to voice their concerns and ideas, ensuring everyone feels heard and valued.

Secondly, reinforce a shared vision. Remind the team of the larger purpose and how their efforts contribute to the overall goals. This can help maintain a sense of direction and collective purpose.

Thirdly, provide support and resources. Offer training, tools, and mental health resources to help the team navigate challenges. Show empathy and understanding, acknowledging the difficulties they face.

Fourthly, promote a positive and inclusive culture. Celebrate small wins and recognize individual and team achievements. This boosts morale and fosters a sense of accomplishment. Encourage collaboration and teamwork, creating opportunities for team members to support and learn from each other.

Finally, be adaptable and flexible. Allow for adjustments in work processes and expectations to accommodate the changing circumstances. By implementing these strategies, leaders can sustain team motivation and resilience, even in the face of turbulence.

Jennifer:

As always, a solid checklist from our AI co-pilot.

Derek:

Of course, it’s missing a lot of context. So much of what goes into maintaining team motivation started way back during the recruiting process for each team member. My default belief is that creating a ‘Theory Y’ culture (that employees want to work, want to take responsibility and do not need much supervision) is best. That starts with screening and selecting who gets through the front door following intentional communication about the needs and interests of both the organization and the employee. A big shout out to Talent Acquisition teams who understand their strategic importance vs. just order taking!

Jennifer:

100%. The ‘deal’ for every organization sets expectations at the beginning of the relationship. Those expectations are either met or not met. A large gap in expectations vs reality creates a massive “I didn’t sign up for this!” mental deficit. And that can create a mental brick. There’s a big difference between working on a factory line, joining the army, working for private equity owned firms or venture capital firms. The deal is just different. If you’re entrepreneurial at heart, don’t join a 150,000 person organization and expect it to change fast. 

Derek:

I suppose managing expectations falls under the broad category of ‘culture’ and when we talk about culture, we have to talk about manager consistency and competency. Culture is ‘how we do things around here’ and if we have managers leading with inconsistent or random operating principles, it can add to confusion and the breakdown of trust. 

Jennifer:

And when I think of the highest performing and most motivated teams I’ve worked with, the presence or absence of trust has been the #1 differentiator. Some of the most motivated teams were fighting impossible odds to make the organization just survive. Some of the most demotivated teams no longer ‘assumed good intent’ whenever ANYTHING was said (goals, recognition or changes in direction).

Derek:

Which brings up the inconvenient truth – you can be doing everything ChatGPT suggests, but if you misrepresented expectations to people coming in the front door and then some/all managers act in erratic trust busting ways, then you can provide updates, talk about your vision, show support and celebrate wins at every all-hands. But your engagement scores are going to stay stubbornly in the red as people perceive the say/do gap in their day to day experiences. We’ve said it again and again, just focus on Making Managers Awesome

Jennifer:

This is the true change management/culture reset zone. Get the right people and managers on the bus in the right seats doing the right things. Then get the wrong people off the bus. Intentional organizational re-planning is necessary when full trust breakdown has happened. Some people can’t let things go, won’t trust new leaders with fresh momentum, or continue to obsess on marginal special interest goals that are no longer a priority. It’s not a popular thing to say, but the most motivated people can become quickly demotivated when management tolerates these unproductive behaviors. You have to also include removing the folks that can’t evolve as part of your motivational strategy.

Derek:

So we have:

  1. Proper recruiting and aligning on a clear deal/expectations at the front door.
  2. Focus on trust and confidence building across all management layers (Say it, do it, talk and tell success stories). Some of the ChatGPT suggestions may help guide managers who are still honing their craft.
  3. And don’t be afraid to actively exit those who don’t want to be on the bus or won’t get into the right seats doing the right things. It’s not your first choice, but don’t be afraid to do so.

Anything else to add?

Jennifer:

We can’t ignore the value of pay and rewards as a proper hygiene practice vs emergency response. This is a trust thing too. You just can’t get into the habit of saving people who have resigned with last minute bonuses and creating an environment where you have to quit to get recognized. Avoid ‘the squeaky wheel gets the grease’ trap.

Derek:

That’s a whole master class. Retention bonuses and stay bonuses alone are not a solution without the corresponding system wide reset on performance expectations. As with all complicated problems, a highly motivated team is the by-product of a well designed and executed management system.

Jennifer:

And that rounds out our additional insights:

  1. Pay and rewards are best set up as a proactive and fair system that people understand and can achieve.
  2. There are no simple listicles here. The key to success is an intentional high performing and motivational life-cycle system based on predictable/repeatable and trustworthy inputs and outputs. People need to understand how to be successful in this system. And if we take the ‘Theory Y’ approach, people will be motivated to achieve their highest potential if the system is well designed and consistently executed.

————————————-

About FarsideHR Solutions

As a husband and wife CHRO and organizational effectiveness consulting duo, we’ve helped 70+ private and public companies solve for scaling, efficiency, productivity and performance.

About Jennifer Farris 

Jennifer is a seasoned HR executive and consultant. She has been a part of the technology start-up scene for close to 20-years and has led many of her organizations through some of their highest growth and infrastructure scaling needs. Jennifer is currently the Chief People Officer at Verana Health. Prior to joining Verana, Jennifer was the Chief People Officer for Terminal. Before that she ran her own consulting firm where she worked with companies such as Virgin Galactic, Flexport, Grammarly, Ampush & Udemy.

Jennifer has her Masters from University of Edinburgh, Scotland and her BA from Santa Clara University.

About Derek Sidebottom 

Derek is a multi-industry 20+ year high growth HR executive with extensive talent, consulting and HR Tech product advisory experience. With multiple IPO’s, M&A’s, hyper growth scaling and top employer awards across diverse industries, Derek continues to lead and embrace excellence within talent dependent organizations. Derek holds a BA is Psychology from L’Université d’Ottawa, a Graduate Diploma in Human Resources from Humber College and an MBA from Athabasca University

 

 

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venture capital term sheets 101

Venture Capital Term Sheets 101: Important Terms for Investors

venture capital term sheets 101

As an entrepreneur navigating the complex landscape of startup funding, encountering a term sheet is a significant milestone on the journey to securing venture capital investment. Term sheets serve as the blueprint for the terms and conditions of investment deals, outlining crucial details that shape the future relationship between investors and founders.

Understanding these documents is important for entrepreneurs, as they signify the height of rigorous negotiations and mark the beginning of a partnership that can profoundly influence the trajectory of a startup. In this blog post, we delve into the intricacies of venture capital term sheets, decoding common themes and key terms that every entrepreneur should understand. By familiarizing yourself with these essential components, you can approach investment discussions with confidence and strategy, ensuring that you’re well-prepared to seize opportunities and navigate the complexities of startup financing.

What is a term sheet?

A term sheet is a foundational document that outlines the key terms and conditions of a proposed investment deal between entrepreneurs and investors. Think of it as a preliminary agreement that serves as the basis for further negotiation and due diligence. While not legally binding in itself, a term sheet outlines the framework upon which the final investment agreement will be built. It covers a wide range of aspects, including valuation, investment amount, ownership stakes, governance rights, and potential exit strategies.

Essentially, the term sheet acts as a roadmap for both parties, guiding them through the complexities of structuring a mutually beneficial investment arrangement. Understanding the nuances of a term sheet is crucial for entrepreneurs, as it lays the groundwork for the partnership and sets the tone for future interactions with investors.

 

Key Ideas Found in Term Sheets

 

There are many ideas usually outlined in term sheets. Each term sheet is different and personalized for each individual investment. We’ve outlined the most common and need-to-know terms that will have your company flying through term sheets in no time. 

term sheet terms and vocab

Pre- and Post-money Valuation:

Before diving into the specifics of a term sheet, it’s essential to understand the concepts of pre-money and post-money valuation. Pre-money valuation refers to the value of a company before any investment is made, while post-money valuation includes the investment amount added to the pre-money valuation. Investors typically use these figures to determine their ownership stake in the company. As a startup founder, you should consider pre and post-money valuation because they directly impact the dilution of your ownership stake and the overall attractiveness of the investment deal.

Warrants & Dividends:

Warrants and dividends are additional components that investors may include in a term sheet to sweeten the deal or provide additional incentives. Warrants grant investors the option to purchase additional shares at a predetermined price within a specified timeframe, allowing them to capitalize on future growth. Dividends, on the other hand, entitle investors to a portion of the company’s profits. While warrants and dividends can enhance the attractiveness of an investment for investors, founders should carefully consider their implications on ownership dilution and future financial obligations.

Liquidation Preferences:

Liquidation preferences outline the order in which proceeds from a company’s sale or liquidation are distributed among shareholders. Investors often negotiate for preferences that prioritize the return of their investment capital before other shareholders receive payouts. While liquidation preferences provide downside protection for investors, founders should be mindful of their potential impact on the distribution of exit proceeds and the alignment of incentives between shareholders.

Option Pool:

An option pool is a reserve of shares set aside for future employee stock options and equity incentives. Investors may insist on the creation of an option pool as part of the investment terms to ensure that the company has adequate resources to attract and retain top talent. While option pools are essential for employee incentivization and talent acquisition, founders should carefully consider the size and allocation of the pool to avoid excessive dilution of existing shareholders.

Dilution & Anti-Dilution:

Dilution occurs when the issuance of new shares reduces the ownership percentage of existing shareholders. Investors may seek anti-dilution provisions in the term sheet to protect their ownership stake in the event of future equity financing rounds at lower valuations. While anti-dilution clauses safeguard investor interests, founders should be aware of their potential impact on the company’s flexibility in raising additional capital and the dilution of founder equity.

Addition of Board Members:

Investors often negotiate for the right to appoint board members or observers as a means of exerting influence and oversight on company operations. While having investor representation on the board can provide valuable expertise and strategic guidance, founders should carefully consider the implications for decision-making autonomy and corporate governance.

Investors include these key terms in term sheets to safeguard their investment, maximize returns, and align incentives with founders. As a startup founder, understanding these terms is crucial for negotiating favorable terms, preserving equity ownership, and ensuring the long-term success of your venture. By familiarizing yourself with these concepts, you can approach investment discussions with confidence and strategic insight, effectively positioning your startup for growth and success.

 

Benefits To Having a Term Sheet 

 

Securing a term sheet marks a significant milestone in the journey of raising venture capital for your startup. While negotiating and finalizing the terms of a term sheet can be an intense process, the benefits it offers to both entrepreneurs and investors are substantial. Here are several advantages of having a term sheet:

Clarity and Structure: A term sheet provides a clear framework for the terms and conditions of the investment deal, helping both parties understand their rights, obligations, and expectations. By outlining key provisions upfront, a term sheet establishes a structured approach to negotiations and facilitates smoother transactional processes.

Investor Commitment: Receiving a term sheet signals a strong commitment from investors to fund your startup. It demonstrates their confidence in your business model, team, and growth potential, paving the way for further due diligence and closing the investment round.

Time Efficiency: Negotiating and finalizing a term sheet streamlines the investment process by focusing discussions on critical terms and avoiding protracted negotiations on minor details. This efficiency saves time for both entrepreneurs and investors, enabling them to allocate resources more effectively to other aspects of their business operations.

Basis for Due Diligence: A term sheet serves as a foundation for conducting due diligence, allowing investors to assess the legal, financial, and operational aspects of your startup in greater detail. By providing a roadmap of the proposed transaction, a term sheet guides due diligence efforts and accelerates the overall investment timeline.

Investor Alignment: The negotiation of a term sheet provides an opportunity for entrepreneurs and investors to align their interests and expectations regarding the future direction of the company. By discussing key terms and strategic objectives upfront, both parties can ensure that their visions are aligned, fostering a stronger and more collaborative partnership.

Legal Protection: While not legally binding in itself, a term sheet can offer legal protection by documenting the preliminary agreement reached between the parties. It serves as evidence of the intent to enter into a formal investment agreement, mitigating the risk of misunderstandings or disputes during the later stages of the transaction.

Competitive Advantage: Securing a term sheet from reputable investors can enhance your startup’s credibility and appeal to other potential investors. It signals validation of your business model and differentiation in a competitive market, increasing your ability to attract additional funding and strategic partnerships.

 

Venture capital term sheets are indispensable tools that shape the dynamics of investment deals, offering clarity, structure, and alignment for both entrepreneurs and investors. Understanding the key terms and implications outlined in these documents is essential for startup founders to navigate the complexities of fundraising and secure favorable investment terms.

 As entrepreneurs embark on their journey to raise capital and grow their ventures, resources like StartUpNV provide invaluable support and guidance tailored to Nevada-based entrepreneurs and investors. By leveraging the expertise and resources available through startupnv.org, entrepreneurs can access a wealth of opportunities, mentorship, and networking connections to fuel their success in the vibrant startup ecosystem of Nevada. Other tools, like Investopedia or Y Combinator are great resources as well. 

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how to find a startup mentor

How To Find A Startup Mentor

Whether you are a seasoned entrepreneur or creating your first startup, connecting with a mentor can be one of the most impactful parts of your journey. The potential behind a solid mentor relationship is boundless. They can open doors to opportunities you never thought possible, lead to new connections, and be an incredible support system. While I hope I’ve already convinced you that mentorship is important, you may still be asking yourself questions like: I’m pretty sure I know what I’m doing, do I really need a mentor? Or, maybe I do need a mentor, but where/how do I find one? 

how to find a startup mentor

Why are mentors so important? 

Let’s be honest: you probably aren’t an expert in everything. Having range, also known as being a generalist, is a common quality of entrepreneurs. But it also means that your knowledge of each topic is a little bit limited. Cue the mentors! Leave behind your pride and find a mentor who is a true expert in marketing, business models, or pricing. Hit up that IP attorney or leverage a VC veteran to provide deep industry insight. 

Someone who has “been there, done that” will provide immense value to your own process of building a company. By utilizing the help of a mentor with a specific skill set, you’ll be able to take a deep dive into the specific problem you need to solve. Entrepreneurs like to talk about innovation, but some forget that the key to innovation is utilizing diverse perspectives. Sitting down with an expert who can provide a unique perspective from their own years-long journey is priceless. They will fill in the gaps between what you already know and what you need to know. 

How do I find a startup mentor? 

There are many places to look, so here’s a quick guide: 

  1. Try your local network. Start here first and reach out to someone you know, whether they are friends, family, or acquaintances. Maybe your friend works in a marketing firm, and you know they have a legal department. Ask to get connected with their corporate attorney! Getting a warm introduction to someone is a lot easier than a cold one, and you may get hands-on experiences with a mentor you’re already familiar with. 
  2. IncubateNV through StartUpNV. Our online incubator is hosted on a comprehensive platform with a free curriculum that leads you through the basics of starting and scaling your business. To support that process, we have a community of mentors available to you, which can be narrowed by industry. Available for free, IncubateNV’s online platform is targeted towards Nevada-based entrepreneurs, but open to anyone. Join here today: https://startupnv.org/startups/incubatenv/
  3. IncubateVegas. This 5-week bootcamp runs twice a year for Las Vegas locals. You will be part of a small group, led by a mentor who will meet with you weekly to support your group through the program. Being hands-on means putting in work – and that’s what this bootcamp is meant to do, with a tight curriculum and strong support system. Learn more here: https://startupnv.org/incubate-vegas/
  4. Online networking. While warm introductions yield higher results, there is still so much power in finding someone who fits the exact qualifications you’re looking for. Often used for job hunting or employee-finding, you can repurpose LinkedIn to scout for a mentor! It does help that mutual connections are visible, so perhaps use that to your advantage. Sort people by location, expertise, past jobs (someone who worked at the same company as you will be a good connection point), etc. 

How to set yourself up for success: 

  1. Identify your specific needs. Are you looking for general accountability, help around a specific subject matter, or some industry insight? Knowing the answer to this first will help you find the right mentor, and may even help you develop the right questions to ask once you get connected. 
  2. Cross reference your needs with a mentors’ expertise. If you’re able to, check out a mentors’ experience prior to reaching out to them. You can do this on the IncubateNV platform, where each mentor’s profile will display their expertise and bio. Maybe even search through their LinkedIn where you can review their previous jobs, industries, and interests. The main goal is to make an informed choice of which mentors you connect with. (Pro tip: Choosing a mentor with entrepreneurial experience can be especially helpful, as they’ll understand the unique circumstances of a startup founder.) 
  3. Think about your preferred mentoring style. Light communication may work for some while regularly scheduled meetings are better for others. It’s okay to have a one-time meeting, where you get the information you need and move on. Additionally, how hands-on do you want them in your mentoring sessions? Some mentors are willing to roll up their sleeves more than others, but what would be most beneficial to you? 
  4. Be diligent in your meetings. It’s up to you to lead the relationship. Make the first move, suggest a time and date, and be on time! “Come prepared with questions, asks, and successes,” says Christina Del Villar, a long-time startup mentor and marketing expert. Setting the expectation upfront is very important to developing a trusting relationship, and proves that you are serious about your startup.

How many meetings should I have? 

An effective mentoring relationship can be long term, or consist of just two meetings! Quality over quantity definitely applies here, and if you’re connecting on a specific topic, it’s not always necessary to have a prolonged meeting schedule.

If you’re going for a multiple meeting relationship, make sure to set yourself up well. We often suggest having an initial meeting as an intro, where you might clarify your needs, expectations, and background of yourself and the company. You may even bring up your preferred mentorship style. Coming to the meeting prepared with your tasks will show your mentor that you are serious. 

How to have a good relationship with your mentor: 

  1. Make sure you’re compatible! The mentor and mentee need to “click.” Irina Tsetsura, one of our product operation mentors, says that “both [people] should be excited about each other’s work, experience, and what you are working on.” Developing a positive relationship from the beginning will be rewarding and allow you to have more productive rapport with your mentor. 
  2. Follow-up and be reliable. Irina also stresses the importance of “respond[ing] and diligently follow[ing] through on the goals and commitments established during mentorship sessions” as a mentee. By doing the homework your mentor gave you, it proves that you value their time and will continue to uphold your end of things. The relationship works both ways: your mentor supports you, and you do the work. 
  3. Be a beginner. One of StartUpNV’s marketing mentors, Stephanie Jiroch, adds this about mentor relationships:

“When it comes to building a good relationship with a new mentor, don’t be afraid to be a beginner. The reason you joined forces with a mentor is to gain access to resources and knowledge to support your growth and evolution – both in business and as an entrepreneur. Too often, I see entrepreneurs who are afraid of looking ‘dumb’ and do not ask the questions that will help them grow, launch, or scale. To get the most out of your mentor/mentee relationship, lean into the learning process, ask the questions, and be open to what could be done differently so that you can succeed.” 

  1. Don’t turn a conversation into a debate. Peter Ciulla, another StartUpNV mentor who specializes in hardware tech and cleantech, leaves founders with this nugget of information regarding successful conversations: 

“It’s important not to make a mentor session too much of a debate. Remember that they’re volunteers and they’ve developed expertise in a specific area. As an entrepreneur, it’s best to take note of their advice and input, process it offline, and then decide what is right for your specific business.” 

  1. Keep your mentor in the loop, even if you’re no longer meeting. It’s so rewarding to hear the positive outcomes of the work you put in together. Even a quick email letting your mentor know that you implemented their advice and it led to results, will make their day!

Should I pay for a mentor? 

While searching for mentors, you may find some who charge for their time. While some people may view that as a valuable investment, it’s not always feasible for founders on a lean budget. In my opinion, don’t pay for a mentor. There are plenty of qualified professionals who are willing to support founders for free out of their own desire to give back to the community, or who want to get/stay involved in the startup world. 

Regardless of whether you pay for a mentor or not, the value is in the support and time savings they can provide you. Make sure to keep tabs on whether you work well together, if you’re making progress on your goals, and that you’re being true to yourself in the process. These will be telling signs that you’re on the right track. 

StartUpNV always has free programs and free mentors, so start with us if you need a boost! Whether you choose a self paced program like IncubateNV, a year-long program such as FounderNV, or an IncubateVegas bootcamp, we will ensure that you have access to mentors that fit your needs to get you on your path to success. Visit our programs page to get started: https://startupnv.org/startups/services/ 

 

Are you interested in being a mentor for StartUpNV? We are primarily in need of mentors for ideation and early stage startups. This may look like: 

  • Leading small groups of founders through a bootcamp 
  • Throwing a hands-on workshop in your area of expertise 
  • Being available for founders to reach out on our incubator platform 

If any of that sounds interesting, please submit a mentorship interest form today! https://startupnv.org/become-a-mentor/

About the author, Audrey Randazzo: 

Mentor Audrey Randazzo startup las vegas 2

Audrey Randazzo earned her Bachelor’s degree in Anthropology with a minor in Art from the University of Nevada, Reno in May 2021. While in school, she had internships at the American Chemical Society for Community Management, the Nevada Small Business Development Center for Marketing, and held a long term position at the UNR Career Center where she utilized her unique blend of analytical thinking and creative problem-solving skills.

Over the past three years, Audrey has made significant contributions to StartupNV, where she started as an intern and quickly progressed to the role of Program Manager. In her current position as Mentor Manager, Audrey plays a pivotal role in the growth and success of the accelerator programs by sourcing experienced Mentors with skills across the board. She works closely with a diverse network of professionals, guiding and facilitating their engagement with aspiring entrepreneurs.

In addition to her work with the Accelerator Mentor Program, Audrey actively contributes to the development and enhancement of other vital programs within StartupNV. She has played a key role in shaping the vision and execution of Founder University Nevada, IncubateNV, and IncubateVegas. With strategic insights and collaborative approach, Audrey ensures these programs provide valuable resources, mentorship, and support to startup founders at various stages of their journey.

Outside of her professional pursuits, Audrey enjoys rock climbing, traveling, and visiting every coffee shop in Reno. She dislikes spending over $8 for an oat milk latte, but still supports the local ecosystem.

How To Find A Startup Mentor Read More »

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