Behind The Scenes: My VC Investor Meeting - Building a Billion $ Company (Episode 2)
Vložit
- čas přidán 11. 09. 2024
- This is a live, behind-the-scenes of my Q1 2023 Board Meeting with my lead VC investor, Eurie Kim at Forerunner Ventures.
I flew to San Fransisco for this meeting and vlogged the entire thing. We met up with our investors at Forerunner and sat down for a 2-hour board meeting discussing topics like our current financials, struggles with hiring, and whether we should raise more VC funding or not.
There's some major unlocks in this one, so be sure to watch to the end to hear all of the great conversations we had!
In this series. I will be documenting the full process of what it's like running a startup, and you'll get to watch live as I figure out how to get us from $25 Million to $1 Billion.
Specifically in this episode, we talk about:
- What we're expecting from this meeting
- How we've prepped for the meeting
- Meeting the Team at Forerunner
- Whether or not we should fund-raise
- Who we should hire
- How to deal with burnout
-
Want to start monetizing your content? Check out my company, Stan Store:
stan.store/
-
Follow me on social media!
Connect with me on LinkedIn:
/ johnghu
Need advice or have a question? DM me anytime on Instagram!
/ jayhoovy
For my funnier videos:
/ jayhoovy
The female vc was so kind, so patient, so willing to discuss, so counter intuitive in a positive way. I’ve got many a beef with vc, but she was actually secretive to the discussion.
Accretive*
@@upstartfenixthanks for the new word - never heard that one before 👍
Thank you for maintaining this level of transparency in your business, John. These peeks behind the curtain always provide a serious level of both insight and entertainment. Keep crushing it!
Love to hear it! What other aspects of the biz building journey would you want to see? Gonna turn you from Newbie to Expert :)
@@jayhoovy Give us a compilation of interview sections (ofc you need ppl approval, but it would be awesome)
I’d love to see a video series on product differentiation and product driven growth at Stan
I don’t think there are many CEOs out there that will be as genuine and honest about what they are going through! Really inspiring!
This vid says a lot about how we compete. We don’t compete on information - all numbers/ideas are true. We compete on execution - that’s what we are the best in the world at and why we win 🏆
Luv u ❤️
Yeah was a bit worried if you are not giving competitors too much insights into how your business is doing.
never i would have imagined, that i could get a glimpse of what a vc meeting in a startup would look like or even a behind of scene, thank you for this love for India would love to see more videos like this
Grateful that you're here for the journey Bharat! Excited to see what you build in India!
I'm absolutely loving this series so far. I want to build my own startup one day and this level of transparency is insane, really really inspiring man!
One day when you're atop the mountain of success with your own startup, let me know Eli! Would be the best gift in the world to hear that I helped inspire you to achieve your dreams!
"If you aren't willing to bring in leaders then you can't grow the company." Sometimes the most simple advice is the best advice.
This was awesome. Love the behind the scenes, as well as the emotional authenticity of fears, feelings, etc.
Appreciate you Utah king 👑 🫡
This is absolutely incredible. As a $3m ARR start up, this hits home on sooo many levels. Please keep this going.
The fact that you were able to be vulnerable to not only your investor and your business partner but your viewers says a lot. I can’t imagine the amount of pressure you feel. Like bro, I run a small company, but you’re on a different scale!! 🤯 You just earned a new subscriber, keep doing stuff like this, it really motivates me.
You're doing amazingly well, John. Running a start-up is no easy feat. I'm pretty sure Stan will be a unicorn.
Appreciate the kind words of support Peter! I think there’s a solid chance we get there too!
Excited to see what you yourself accomplish too!
@@jayhoovy ❤
The transparency you have is really inspiring. Being able to voice yourself to someone who has that much power can be so intimidating. Really appreciate you putting this content out there for other entrepreneurs🤠
Excited to see what you build Short!! Really happy to hear that putting this content out there can help you too
Hey Jay, here are some thoughts:
- your growth is great, but 12% churn is a bit high, and it can be dangerous. Spend Q2 trying to drop this number to 8% and Q3 to 6%. Ideally, SMB needs to be bellow 5%. A healthy churn is 3% max.
- your investor is right: the growth is nice but it can fluctuate. 12% MoM on a 2.5M ARR is great, another reason to fix churn so you’re in a good place when growth might get stuck.
- fundraising in 2023 is not a good idea, better to focus on execution and think about raising series A in early 2024. Your cash position is good, 2 years runway. Just make sure that you’re default alive, which seems to be the case.
- it’s going to be tough to hire experienced execs now, maybe a Head of Marketing is a great idea to help with demand Gen. Don’t go for for VP, but for Director level. When you raise A, then hire other leaders per each function.
- make sure you manage your burn out, the company is too early to replace you. Push to at least series A, you’re so close.
Keep it up, brother. ❤
Wow, thanks for sharing.
This was so raw and transparent and whatever hard decisions you make moving forward, I wish you the absolute best! Thank you for taking your viewers on this amazing journey with you. I am so proud of you!
Thank you so much Christine!! This is literally my face right now reading your comment 🥺🥹 - wishing you the very best rest of your week!
I'm a pre-seed technical cofounder in a B2B AI SaaS company, also a first time founder. Unfortunately accelerators put a heavy focus on repeat founders and avoid first timers. Here's hoping I can live vicariously through this vlog and sound less like a first timer during these VC interviews lol.
Best of luck to y'all! Can't wait to see what's next
Keep building - you'll crush it and the Accelerators will wish they funded you!
I felt it when you presented the cash burn. But I also felt the energy flowing that your team can execute, deliver and land this plane. Good luck!
gonna land this plane for you vaguevoices!!! Excited to see where the journey takes us and glad to have you along for the ride!
Wowww 🤯. This was the most entertaining business presentation I have seen so far. Amazing video, John. Would love to see more content on this topic from you.
goldmine of information. awesome transparency and breakdown of your pursuit. Thank you!
Glad it was helpful Matt! Excited to see what you accomplish on your own journey!
I've been following along quietly from the sidelines, but this video, in particular, really struck a chord. Other videos have been solidly real, but this one took transparency to a whole other level. Brilliant!
I've looked at your jobs notion site and unfortunately, I (1 year out of college, in consulting) still don't have enough experience for any of the positions ... hopefully, amount of experience required changes someday. We're the hungriest of the bunch, and I personally would LOVE to join the Stan team. Looking forward to the next video!
It's a fair point. When hiring ex-consultants, there's a balance between ensuring they have stayed in their roles for a sufficient amount of time to pick-up and apply the proprietary IP (frameworks, assets etc), but not become institutionalised and oftentimes burnt-out
wow I cant believe how transparent this is. I always have that the thought that the startup world is cutthroat
it is - we're just pioneering a new path :) kindness is king
Hello John. Firstly being a first time founder myself, I will always have the greatest respect for anyone that takes the leap and decides to build a company from scratch. I have worked on my startup for the last 3 years and we still haven't launched. Almost everything that could be thrown our way has been. We have experienced difficulties that could have ended a lot of startups before they even had a chance to really begin.
From facing off a multi billion dollar company in trademark court, and eventually winning. To delaying the building of our app because our developers were now in the middle of a warzone. To so many other things.
And yes it has been difficult and there have been times where I was tired and burned out dealing with everything. But I never once thought about no longer being the ceo and passing it over to someone else.
Along with your co founder or co founders. It's your vision. You cannot delegate your vision to somebody else. You may need to hire someone to deal with all the non visionary day to day stuff. But stepping away is a mistake.
You have to decide though. Is building a company and potentially a unicorn really what you want. Or are you more in love with the idea and this is just your new shiny thing that has your attention for now.
And I have not fundraised. My co founder and i have bootstrapped everything so far. However what investor is going to see that you may want to hire a new ceo and want to give you 5 to 10 million dollars or more. They will think that your heart is not in it, and you're asking them to believe in the vision. Without the lead visionaire running the show.
Now you're going to get a lot of positive comments on here. And rightly so. But most of them will not know what it's like to be in the startup space. If this is really what you want.
Keep on the path. Keep going.
But what do I know. Just a random guy in the comment section. And atleast you have launched bro. I'm still in dock.
Thank you for the thoughtful response! This is definitely the struggle I’m dealing with - do I actually want to build a $bn company? Will all the stress and pressure that comes with it actually make me happier? I know that I care deeply about our mission and empowering millions to pursue their dreams - but I don’t really want the wealth and fame that come with it.
I don’t have my answer yet - but you’re going to see my back and forth struggles live through this journey.
Thank you again for the fellow founder perspective!
I look forward to watching your journey. And I think most times I don't know if we ever really get the complete concrete solution that ends up being the one that leads to true contentment.
I see it as just different sets of trade offs. I have things that I would like to do in the future. Not necessarily for only my own gain. And I have come to the realisation that those things are far easier done if I have a successful company and can have the resources needed to be able to affect real change.
It's not easy bro. The inner conflict and turmoil more often than not will remain with us on this walk. But I have found it easier knowing I have a goal that is outside of myself, and have to have that singular determination to keep the focus on the end point. While simultaneously just taking each day as it comes.
Hopefully it will be enough.
Take care and I and many others on here can't wait for your next installment.
Major props for being that transparent about impostor syndrome to the investor and showing us too. Not sure how many CEO's would be willing to swallow their pride and admit that in order to figure out what's best for the company moving forward.
Appreciate you Aditya! I'm truly in the muck of it and struggling a bit (but coming out of it now and seeing some clarity of what might be best for the company) - thanks for supporting the journey!
Hey I just wanted to say thank you so much for this content! I'm in high school and I've always wanted to start a company; it's super interesting and inspirational to have a firsthand look at the inner workings of a startup with such well made videos. Best of luck with Stan!
Of course!! You’re starting out so early being in high school! You’re going to accomplish so much with all the time you have!
It is so cool to just watch how a start up really works. Keep going John, you got this. When you feel burnt out just think of the 1000s of creators you are helping to change their life. That is what I do to fire me up to edit even when i'm burnt out. Can't wait to see this company and channel grow together.
D'aww thank you so much Huntr! I really appreciate the kind words - I'm actually editing a video right now where I talk about my burn out - and that that mission of all the Creators were helping is really what drives me forward.
Building my own startup was one of the hardest things I have ever done, and the level of anxiety and pressure only increased significantly after we raised our first round. This was great. Thanks for sharing behind the scenes. I’m excited for the next one! Good luck guys.
Cheers Philip! Any feedback as you watch the journey always look fwd to hearing it!
Absolutely love your transparency here. Couldn't be more excited about this series.
Me too Tiago :) excited to see your own journey!
Would be great to see more of this style of content. If you do decide to raise, for example, take us on the journey!
Jay - You & Vitalii should've hugged at the end to seal that moment!😂
Great to see you have an LP like Eurie that you can confide in and be yourself. Good content bro! Subbed for the culture.
Appreciate you Atang! Yes - Vitalii is always there to support as my partner in this. See you in the next video!
Thanks for sharing. Love it! Good luck guys!!
Thanks so much Eitay!! See ya in the next episode!
Thank you for being transparent, I’ll use this video to make the VCs and Aspiring VCs I train aware of how investors manage Board meetings. I thought it’s quite obvious your VC pushes you to raise funds as it’s the Silicon Valley model, but I also appreciate what she said about not believing that just taking a break will remove the causes for burnout. The exhaustion you feel, John, is a symptom and not a cause (although research shows that the relationship between depression and lack of sleep is bidirectional). Looking through your impostor syndrome is a good place to start. Psychologists have found that the lack of job fit (perceiving you don’t have what it takes to do the job) is a factor in the burnout syndrome. I’m going to drop a detailed post on these issues next week, underpinned by years of research for a Doctorate in Business Administration. I’ll pin it at the top of this page: thevcfactory.com/all-our-posts/
Thanks so much for the thoughtful words! Definitely bidirectional between exhaustion but also true life alignment - I'm working through the former so I can figure out the latter! And yes! Definitely incentive misalignment between VCs and a founder's health!
Cant wait too see the first billion dollar company to document from the first day to the end
yessir! and you get to say you were there from the beginning Matthew!
Damn, that last part with the scales makes total sense. Never thought about it like that. You guys telling stans story is my current top 3 youtube channels. Rooting for you!🥰
Right!!?!? She blew my mind with the metaphor
This is some really cool content - keep it coming. John its right you feel scared if the mission is big - anything small enough not to scare you isn’t a problem worth working on
Great perspective Sach! You’re right - anything worth having comes with hard work
Getting really interesting to know the people behind Stan! I believe in your product and hope for your success!
Awww thank you so much for the kind words Rhedge! I believe in you too and wishing you all the best!!!
This takes building in the public to a whole new level. Thanks guys 😊
You got it Joebo! See ya in the next episode!
This series is so cool. Seeing the behind the scenes of creating a SaaS business is so entertaining! Keep it up guys!!
Thanks Liam for the kind words! Appreciate you joining in on the journey this early!
I have been consuming some of your content for several weeks now and I found this to be very insightful. Thank you for sharing J
another great watch! loving this series and the amount of effort you're putting on this! very motivating
Thank you for the kind words Anthony! Cheers sir!
Hi John, new sub from Ghana here. I love and appreciate the series. The videos have inspired me to double down on my startup idea. I'll be following keenly. Thank you❤
Thank you, yet again, for inspiring all of us immigrant kids who want to make a difference in the world. I'm also a UNC (gdtbath) student so I feel connected to your story. You're the most honest and genuine person in the industry - I can't wait to follow you and Vitalii along for years to come and mention that I was there from the beginning (:
Go Heels!!!! Thank you so much for the kind words and support. Excited to see what you yourself accomplish! ❤️
I'm an middle age guy, but I've learned so much from just watching some of your videos. Thank you for the great content.
Cheers! The beauty of life is we’re never too old to keep learning :)
This channel will blow up, calling it now. This is incredibly insightful thank you!
Wow, thank you Gianni! I appreciate the kind words and am excited to see your own journey!
You are killing it. Learning alot from you guys. Are you open to seeing my MVP. I want to know what to do next
This is an awesome video! I’ve been watching your content for a few weeks now and the transparency and authenticity is super inspiring! Keep it up!
Thanks for the kind words Sheldon! See ya in the next episode!
Thank you so much for recording this. This was insightful and very honest.
Of course Ashima! Thanks for your support! Cheers!
Your content is incredibly informational, thank you Jay!
Appreciate the support so much! See you in the next video!
Wow John! Your videos are so good. Why is this channel not getting recommended to everyone!
Ha! Thank you so much! We're still in the early days of the channel so I appreciate you being this early in the journey!
Thanks for the transparency! What a weird world we live in.
Amazing content. Many thanks for providing us access into a space normally excluded from public view. Felt amazing to see the human aspects of a principal at a leading VC firm and humanize the whole experience. Thanks again for demystifying the interactions.
That's what I'm here for Hao! Hoping it can help you in your own journey! Cheers!
Here is some constructive criticism for you. And I say this respectfully (seriously). I went to your website before watching the whole video, and it took me 3-4 minutes to understand what you are selling. After realizing what it was, there was nothing on the site that made me feel like I need this service. Also, the landing page needs more artwork, or some type of infographics. Just my opinion. Good luck with your venture. I’m in the website design phase of my new venture and plan to launch soon.
Awesome content and very insightful behind the scene ! keep up the good work Jay and enjoy the journey 📈
Appreciate you cowboy bebop! Maybe when the journey gets a little more chill I can finally watch this anime series haha.
I am not in the room but can already sense the amount of pressure and stress you are carrying on your shoulders. Good luck man!
Appreciate you Oleg! The support means a ton! Hope to see ya in the next episode!
Solid series man! Great vid :D
Thank you Afzal! Appreciate the support 🫡🫡🫡
Good job for being 1000% transparent! Admitting to feeling “imposter syndrome” is the right step to not being an imposter. Bravo. Many people are too scared to admit it, but everyone experiences some form of imposter syndrome in their journey. It’s ok, this is where you will find deep personal growth. You’re a brand new baby founder learning how to build a product and run a business like a baby chick learning to fly. You will grow into those wings as a byproduct of searching out solutions and trial and error and then one day you will soar! Keep up the good work! Keep being transparent…it’s a sign of courage.
Courage is doing something even though you ARE scared. It’s ok to be scared. You’re gonna be alright 🙏🏼✝️
Awww I appreciate the kind words and perspective! It’s definitely scary but a worthwhile journey 🙏
Any crowdfunding rounds planned in the near-future? Would be great to have observers / viewers / even creators who use Stan, to invest alongside the VC's in your journey Best regards Jack
absolutely amazing! Cannot find such content anywhere else. Good luck to both of you!
12:35 articulated incredibly well
right?!? I still think about her example all the time
Inspired by what you do and how transparent you are with everything you do! Nice series.
Amazing video❤❤ thank you
Would love more vids like these❤❤❤
More to come Yolama! Cheers and thank you for the kind words
Thank you for uploading this ❤. Stan will be big soon
appreciate your kind words a ton Tenzin! thanks for being along for the ride! ❤❤❤
Thanks for this video man. I can totally relate to this. Love your authenticity and the way you operate with your mindset. All the best bro. Lets fight together!
Let's fight together Jayshen! Appreciate the kind words and glad to have you on the journey!
Take that weekend and then grow that team! You've come this far - time to level up!
Ur videos are amazing. Love the insight.
Gosh. Thank you for showing vulnerability. It makes you more likeable! I’m a fan .
My main takeaway from this video, John has a wicked head of hair! What's the secret man?
But in all seriousness, as a PM/SWE I'd more than happy to join Stan's mission and help scale the company. If you're ever hiring, hit me up!
Stan has the potential to change lives and leave a lasting impact. Stay resilient and remember that brighter days are ahead.
You've got this!
Haha! Thank you Matthew! Really appreciate the kind words - keep a look out on our career page!
Hey man, you just inspired me to take my group's project idea seriously.
We're continuing it over the summer and I wasn't entirely stoked over it, but we're excited to see where it'll go.
Good luck! And worst case - it doesn’t work out and you learn a ton from it :)
This is amazing! I wish you both the BEST!!!! You guys are truly champs ❤
You’re the best Chris!!!! Thank you so much for the kind words!!!
this channel is about to grow pretty fast - haven’t seen anything like it. Keep it up!
Appreciate it Jason! Hope to see ya in the next episode!
Why have I discovered this channel just now?!
Subscribed & will binge watch all your videos + all future ones 🫡
welcome DJ!!! Appreciate you joining the journey this early :)
Another way to think about your content is a retention strategy. It might not be bringing in lots of new customers but it builds trust with existing customers and prevents churn
Definitely an ancillary benefit!
a next-level transparency that's truly inspiring
appreciate you Feldmand! thanks for being along for the journey!
Thanks for sharing your journey man, it’s SO COOL and motivating
So cool to see the behind the scenes of Stan!
Thank you so much for the kind words Anna! Hoping the BTS can help you in your own journey too! Cheers!
Completely agree on your points about the future and love the transparency!
Thank you Bunny! See ya in the next episode
You guys are inspiring
you inspire me to keep making great content! thanks for supporting!
Really appreciate the transparency and insight! Echoing what the other comments say -- you really humanized the experience of building a startup and this was really meaningful to watch.
Thank you so much for the kind words SDP! Hoping to share both the ups and very real downs with you for the whole journey - hope it can inspire on your own journey! Cheers
@@jayhoovy It definitely is!! cheers!
Hey Jay, you doing great and I think your optimistic attitude is amazing. Keep it up!
Thank you sir! Wish I had more time to play chess!!
This content is super transparent and I’m excited to see this journey. Love it
Appreciate you Oliver! Will keep trying to be as transparent as possible and bring you along for the whole journey!
See ya in the next episode!
Wow! This was a crazy level of transparency. Subscribed!
Wow! Appreciate you Brandin! Welcome to the fam!
This is golden content thank you
Appreciate you Imp! You're golden!!!
Amazing to see your path
Appreciate the kind words Charles! Cheers!
This is so cool. I’m going through something similar with my startup and love seeing this
You’ve got this fam!! I believe in you
love these behind the scenes look, awesome content man
she is giving major tiger mom vibes, jay says he needs a bit of a rest, she goes oh hell no!🤣
she's the best hahahaha - we joke that Jason is our nice white dad.
appreciate you a ton MB!
Walk us through your initial valuation, how many users did you have? What portion of them were paying etc
I agree with Eurie, you should raise more money while you have some positive movement in revenue. Get more cash. Can be used for many things.
Another great vid! Love this type of "in the board room" type of content. Keep it up!
Appreciate the support Steven! Will make sure to vlog the board room dynamics going fwd!
Loved the video
Love what u do! We need more creators like that
i love the transparency
I love the support Siddhant! See ya in the next episode!
Excited to see your journey of pursuing your passion. Subscribed!
Awww thank you so much SpiritsofSouls! Appreciate you being along for the journey this early!
Love the content I always wanted to start a startup but don’t really kno how to start or where to get investors or user love to see someone that doesn’t have it all figured out but is taking action n learning as they go
Heck ya - I'm excited to see what ya build one day Solomon! See ya in the next episode!
You're amazing. Thank you. Also, you sold me ... Free trial = started.
Ha! No need to be sold! If Stan ends up being a great fit for your needs, awesome! If not, no worries at all! But I can guarantee it's the best product of its kind in the market ;)
this was really good! best of luck to y'all :)
What an awesome insight into the startup company and the thoughts and operations involved in it!
Thanks for the kind words Dr! 🫡
I just love this channel, the coolness and sympathetic of you John - wish you all the best of luck to achive your goal buddy, you truly earn it!
Greetings from Germany
Thank you so much for the kind words Kevin! Seeing your message makes me want to achieve it even more to make you proud! Will have to visit Germany soon :)
wow amazing content !!!!🤩
Wow this was an awesome behind the scenes look!
Thanks for the kind words Nikhil! Wishing you a great week!
Another Dub video, super insightful!
Appreciate you Tyler! Any specific subjects or topics you want me to cover?
This content is INCREDIBLE, can't wait to see you blow up 📈📈
Appreciate you Chris - you're INCREDIBLE! Thank you so much for the support!
Before seeing this, I thought vc meetings would be this really high pressure thing which just focused on numbers and all that but this changed my perspective on how these meetings really are
Ha! Many of them are - ours are just more chill because we have a decent grasp on the business!