001. Pool Party

Text your thoughts directly to Rich.

Raising a seed round is like throwing a pool party.

About SpringTime Ventures
SpringTime Ventures seeds high-growth startups in healthcare, fintech, logistics, and marketplace businesses. We look for founders with domain expertise, forging a path with a truly transformative technology. We only invest in software-based businesses in the USA. We bring a people-focused approach, work quickly, and reach conviction independently. Our initial check size is $400k to $600k. You can learn more about us and our approach.   

About Rich Maloy
Rich's mission is to rebuild the American dream through entrepreneurship. He works with early stage startups transforming the world, giving all people the opportunity to grow, learn and earn. With prior careers in finance and sales, he's now focused on startups investing through SpringTime Ventures where he is a Managing Partner. He's a father of two young children and loves sci-fi, skiing, and video games.  

Episode Transcript

Rich (00:01):
This is Rich Maloy with SpringTime Ventures, bringing
you the VC Minute, quick adviceto help startup founders
fundraise better.
Raising a seed round is likethrowing a pool party.
No single investor has enoughcapital to take the whole round.
So that means you're runningaround trying to get six to 12
investors ranging from angels toangel groups, to SPVs, to a

(00:22):
whole lot of venture funds tocommit to you.
This is the pool party.
Worse, it's like a high schoolpool party where the peer
pressure is so thick, you couldcut it with a knife.
No one wants to be the first onein the pool.
So everyone's standing aroundwondering," is anyone else going
to get in the pool?

(00:43):
Are you going to get in thepool?
I'll get in the pool.
If you get in the pool." This isthe opposite of FOMO.
This is FOLS, Fear Of LookingStupid.
What if I jump in and no oneelse does?
Now I look stupid.
Your job as a founder on thefundraising trail is to throw
the coolest pool party.

(01:04):
First, people need to knowthere's a party.
Second, they need to know thecool kids are coming to the
party.
Third, they need to know thatother people are getting in the
pool.
Finally, ultimately you need topush them in the pool.
Over the next few episodes,we'll go through the fun part of
this, getting people to show upedging people slightly and

(01:25):
slightly closer to the edge ofthe pool.
And ultimately, pushing peoplein.