When embarking on your startup journey, funding should not be the main factor.
Now, this might sound ironic coming from a VC, but I firmly believe that as an early-stage founder, your priorities should be developing a thesis, building a product, and establishing a product-market-fit.
This has never been more valid than in our current market, one of excess in excess.
In our current ecosystem, it is relatively ‘easy’ to take a half-cooked idea and run with funding. But while cheap money may sound tempting, it is not the best route if you want to build a stable, long-lasting, and resilient billion-dollar business.
Rather, you and your founding team deserve to ask and have time to answer a few vital questions before you raise that first round, including:
- Is this something you are happy to pursue for the next 7+ years?
- Why are you the one that needs to bring this product to the world?
- Is there a big enough market and an urgent enough demand for what you are developing?
Taking the time to answer these questions, validate your thesis, and remove risks from the table one by one will ensure that when you are ready to raise- you are raising with a solid direction and the best chance at scaling your business down the line.
While F2 is primarily a Seed-stage fund, we also recognize the vital pre-seed period and how it can greatly benefit founders in the long run. To this end, in their earliest days, we offer founders a vehicle that will allow them to validate their thesis and build strong fundamentals.
Our pre-seed platform, The Junction, is a space for founders to brainstorm, to feel things out, to understand what it’s like to work with each other (and with us). It is the place to make mistakes, and to learn from them, all while being part of a founder community and leveraging F2’s resources.
I remind every founder I meet that raising money should not be the end goal, raising money should be the by-product of building a solid and scalable business that creates real value for its customers.
We find ourselves in an incredibly noisy market environment, one that can at times be distracting- it has never been more important for those early-stage founders to cut through that noise and to build strong foundations that will thrive in any market conditions.