Learning Motors: VC Stuff

We are a still a bit away from when we can start telling the story of the product we are working on here at Learning Motors. I believe the product should speak for itself, and given that we are just kicking off prototyping, there is still time on that end.

But the past few months have been quite incredible. We have had to reorient the team, get the right people on board, hired our first engineers and started architecting the initial product.

We are at the cusp of putting together our first round of funding. Here are some observations after having gone through the funding process for the first time as an entrepreneur in many years:

1. Because we spent a lot of early time on diligence on the product/space, the actual process was very short (days not weeks). The most important people to convince in this process is yourself. Investors put in a bit of money and time, but the most time/opportunity cost is of the entrepreneur. So spend a ton of time convincing yourselves objectively. The rest will flow
2. I really enjoyed it. It was an opportunity for me to meet a lot of smart people and share my vision. Sometimes things clicked, sometimes they did not. But it was real fun

3. I have a lot of respect for VCs who treated me as a ‘customer’. They treated my work with respect, had a lot of great questions, and were prompt in saying Yes or No. Along with real feedback, connections and help regardless of the fit for them

4. There was one who never reverted back. That is probably the most disrespectful thing you can do to an entrepreneur. If you cannot be bothered to revert back after taking an entrepreneur’s time, you are not going to go far in this profession. Reputation carries far in this line of work

5. I found my perfect fit not by spending time in a boardroom but on a series of hikes with a great VC who focused more on personal connection and team, than on the mechanics of the deal

6. We had a really light (on visuals, glitz) deck and it worked. Its not the deck, its the story and your passion that lights up pitches

7. I found it beneficial to not spray and pray. We only went to a handful of select folks, and focused on the person we wanted on board, their commitment to the area, their special sauce that would help Learning Motors. We focused on ‘hiring’ our investors just like we would ‘hire’ our team and that seems to be working

8. We had deadlines to the process and kept it short. Some VCs create optionality by saying Yes upfront and then dragging their feet later on. More time only creates more information for the VC, but is detrimental to the entrepreneur who has to get this done and start building. So run a process, control the flow, and know exactly who you want to partner with

Consider these some early thoughts as we experience what so many of startup folks go through daily. Happy St. Patrick’s day!