Ariel is a successful entrepreneur and investor who has founded multiple companies and serves on several boards. In this document, he provides advice on fundraising, including focusing on building chemistry with investors rather than just product pitches. He notes common excuses investors use to avoid saying no and emphasizes getting them excited. Ariel also discusses international fundraising, different funding structures, hiring slowly and firing fast, taking risks, and following opportunities while ensuring you enjoy the journey.

1. Great Entrepreneurs
ARIEL POLER @ariel

2. Ariel’s Background
 Founder: IPRO, Topica, & Textmarks.
 Board Member: Kana, LinkExchange, Freedom Financial, Odeo,
StumbleUpon, LOLapps, Scan, Strava.
 Investor: AdMob, Flixster, Slideshare, Outright, BrightRoll,
Instructables, VivaReal, Optimizely, Rally, Thumbtack, Viki,
Pantheon, ApartmentList, Mashery, StumbleUpon, Kongregate
and NexTag.
 Personal: MIT (math), Stanford (mba), San Francisco (home).

3. Fundraising

4. Its about the Chemistry
Who you pitch to is the most important thing
Don’t confuse product pitches (or sales pitches) with
company pitches
Key points often overlooked
Customer acquisition strategy
Unit economics
Take a look at bestofangel.com
It is not about checking boxes. It is about getting the
investor excited

5. "You are too early” and other excuses
Most investors do deals when they get excited. But they don't
like to say “I am not excited", so instead they use an easy
excuses, such as:
- You are too early
- The deal is too small
- I want to see more customers/revenues/technology
Be careful about trying to solve address their excuses, because
once you do they are likely to find others. Instead, figure out
how to get them excited.
Investors like to keep their options open.

6. It is not a Black and White distinction
between Angels, VCs, Private Equity
There are many shades of Grey...
-Full time professional angels.
-Angels with funds.
-VCs that focus on seed investments.
-VCs that participate in seed rounds.
-VCs with Private Equity growth funds
What matters most is the individual, not the firm!
Do your homework to identify the best possible people.
BTW, “Signaling” risks are exaggerated

7. International Companies have better
chances of fundraising elsewhere
• Silicon Valley is the only region with too many good deals.
Investors elsewhere HAVE TO invest outside their region,
but we don't. So the bar is much higher...
• So non Silicon Valley companies might be better of
fundraising in places such as London, New York or Boston.
• Of course, a few Silicon Valley investors do invest abroad,
but the bar is higher and the choices scarce

8. Series Seed vs Convertible
Note vs SAFE?
• Who cares???
• Whatever works best for the investors
• If a note, make sure it has a cap (and one everybody likes)

9. Beyond Fundraising

10. You can’t follow all the advise
that you get – including mine
There are many ways of building companies
You must find the approach that works for you
Advise should help you gain insights and to experiment
It is the same for competitive athletes…

11. Speed is overrated!
What good is going fast in the wrong direction?
The better you understand where you need to go, the
faster you can move
But, never stand still!
If you have money you will spend it… Get it when you
know how to use it

12. Risk is your friend
Make big bold bets. All of the most successful
entrepreneurs do!
Use time to diversify: focusing on one thing at a time
But it is OK to experiment with different things for a
while until you decide what you want to focus on. But
just for a while…

13. Don’t believe what you Read
Most success stories are made with 20/20 revisionist
hindsight
It often takes time, e.g. StumbleUpon and Twitter were
not overnight successes as some people think…
20/20 Hindsight gives great strategic vision. Realistically,
successes are built incrementally.
So, don’t obsess over your world domination vision. Just
make sure you have a vision for a small success – from which
you will be able to build a larger one. To use a baseball
analogy, start by getting to 1st
base.

14. Hire Slow & Fire Fast
The moment you start thinking someone might not be
working out, he/she most likely isn’t
But letting someone go is difficult and painful for everyone,
so…, take your time hiring.
Same goes for co-founders, service providers, and others.
Talent Over Experience
References!!! Or better yet, a trial period.

15. Take advantage of opportunities -
but be careful about where you
end up
IPRO story:
Started with consumer analytics
Followed customers to traffic auditing
Became World leader Web traffic auditor
BUT…
That turned out to be a lousy business!
Make sure you enjoy the road
People, product, learning, fun…

16. Help me Help You
Do your homework
The right people to talk to
The topics you want to discuss
Be Specific
Add value

17. Great Entrepreneurs
ARIEL POLER @ariel