Startup life is pretty hectic, but it gets slightly better after raising the first seed round. Obviously there is money in the bank now, but what are the first changes you can address or notice immediately?
In this first post, I wanted to share the 5 top changes we witnessed at Betify after we got investment, and I am pretty sure they also apply to you.
It’s not quite like that, yet:
1) You can build your dream team
Pre investment, you were damning all these developers, marketers, bloggers and other industry gurus who you are desperate to bring onboard. And they all loved the idea (they say that) but outrageously, only work for money! Well you can now afford to bring these like-minded people onboard and focus on your role. Building a team should be one of your biggest satisfaction and pretty difficult to achieve without cash.
2) You are liable for results
As a CEO, it is very unlikely that you had to report or justify your actions to anyone, before investment. If your development is running 2 months late, nobody was going to give you a call, and that was actually pretty sad. Now money is in the bank, there are official meetings to report and control budget. But not only the investors will chase you up; other parties involved as well, as soon as there is money involved. And that should make you feel great. At least now someone cares!
3) You have a salary
This one is pretty straightforward. Unless you were still part time (which is unlikely to be able to convince investors as a CEO), investment will allow you to live and work in a better environment, as well as some financial freedom. It will however be the first column of the financial model to get squeezed if you start to run over budget!
4) You look like you’ve made it (but you haven’t)
The few months before investment, getting these Head of Terms signed is all you could think about, so when the money is in the bank, it feels like an achievement. And it is, hence why for most people outside this industry, such as friends and family, you like you’ve made it like Jan Koum. It’s probably the most important milestone your startup had until now, so it feels good to be gratified, but as I read somewhere, “greeting a CEO raising money is like greeting a chef for buying ingredients… you still don’t know how the food will taste like”.
5) You have no excuse not to succeed
With a proven concept (otherwise you wouldn’t have gotten the money) and investment, nothing should be stopping you. Before that it was easy to blame the lack of money for the things you couldn’t do. Sure you might need a second round, but the first one should take you there. Investment adds a bit of pressure on your shoulders but on the opposite side, seeing that other people are ready to invest in your idea should also make you feel more confident about what the future holds!
What was the major change in your startup after getting investment?