Silicon Valley investor advises new startups

The name of Mark Andressen sounded in the early 90s along with the Netscape project. Since 2009, he became the co-founder of the famous venture capital fund Andreessen Horowitz, which currently owns shares of Skype, Twitter, Facebook.

The investor gave an interview in which he addressed novice startups:

  • We do not invest in startups if we are not familiar with the founder. Although this sounds rather strange, we are sure that the skill needed to work with venture capital is exactly the same as the skill needed to work with suppliers, partners, the press and other companies.
  • Be persistent. The fund receives about 2,000 incoming proposals per year, but invests only 20-40, which is 1-2%.
  • Be prepared for the fact that investments will take 3-4 months, from introductions and first meetings, to a signed contract and money in a bank account.
  • The team is more important. We almost always rely on a special team that is engaged in something new and interesting - this is an assessment of quality, not quantity.
  • Trust, but verify. As in any other business, a venture fund will gladly provide you with a list of companies with which it has worked in the past. If the foundation does not, beware of collaboration.
  • Do not hide past failures. Talking about how you overcome difficulties, you are persistent. If you hide the "pig in a poke", the investor will worry about the fact that you will hide bad news from him if something suddenly goes wrong.

Also Mark Andressen noted:

“This is a great time for experienced startups. Today's trend is the creation of full-cycle projects, in which unique technology comes first, and the capture of major investors in the market is secondary. These full-cycle startups work more efficiently and usually require more experienced leaders.”