November 26, 2007

Yedda founder shares his knowledge, part 1: Investors

Avichai Nissenbaum, co-founder and CEO of the recently acquired Yedda, seems to know a thing or two about creating and running a startup. At today's TIIC/The Coils event, he shared with an audience of some 200 startupers a little of his experience in the Yedda rollercoaster.
Questions to ask yourself before meeting/chosing an investor:

1. What do you want in return?
2. Will the provide value? (actually, they won't have too much time for you anyway)
3. Do you need their help? (investors are looking for an entrepreneur who can run a business, and not someone looking for an angel/investor to run it for them)
4. Do they understand you biz?
5. Will they support the long-term objectives of your company?
6. Full transparency + frequent updates = trust. And relationships are built on trust.
7. Should you take money from friends and family? (Somebody then added a third "f": fools)
8. Can you create a sense of urgency?
9. Traction! Can you prove that you mean what you say?

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