Naval Ravikant Discusses How AngelList Is Rocking The Startup World - Page 3
Look what Groupon is going to do for Chicago. There’s going to be more and more of these early stage networks forming. Silicon Valley will not be weaker, but the rest of the world will be stronger.
JG: What are the characteristics of companies that do not achieve success on AngelList?
Naval: It doesn’t work for the vast majority of folks. The vast majority of companies are either not financeable or not financeable on AngelList. There is a whole set of companies that are not financeable by the venture community; service businesses, markets that are heavily played out, if you are fighting a war that has already been won…you better have some really core differentiation and traction.
(Other disqualifiers include) not enough technical people on the team…if you are completely out of market…pre-launch companies tend to not do well…teams that have no credibility.
The companies that fail to raise funding are the ones who use too many words and too few actions. Your biography is a record of your past actions. Your execution on your current business is a record of your current actions. Talking about what you are going to do in the future is almost pointless. Talking about what you can become is almost pointless. People want evidence. There is a lot of talk out there.