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What Houston startup founders looking for funding need to know about working with VCs

Raising funds anytime soon? Take these tips from a venture capital insider into consideration. Photo via Getty Images

I have had the incredible opportunity to work with New Stack Ventures as a venture fellow, and after sourcing investment opportunities, shadowing calls with founders, and even leading a couple calls of my own, I have learned a few lessons that might resonate with startup founders who are raising capital.

Responsive founders make a difference

The first and likely most important lesson I have learned during my tenure as a fellow is this: responsive founders truly make a difference in whether or not they raise capital.

I have sent several emails and LinkedIn messages to really intriguing companies, in hopes of connecting for a call and inquiring about their raise. And, I look back and see that many of those outreach messages were left unread. I have also engaged in calls with really intriguing companies where the founder never follows up, and the idea of moving forward with next steps dissipates.

On the flipside of the forgetful founder, I have also witnessed extremely attentive founders: founders who send follow-up messages when they don't receive an immediate response, respond to their emails within the hour, and go above and beyond by sending pitch decks and executive summaries (even when unasked). This type of founder persona excites me with their enthusiasm and eagerness to make a deal. Their responsiveness with the investment process sheds light to how they likely run their businesses.

At the end of the day, many founders can say that they are hustlers and go-getters, but I believe the founders that show me through their actions in the investment process.

Great founders are great storytellers

When I do connect with founders in introductory calls (after the back-and-forth, hopefully responsive email exchange), the thing I look forward to most is hearing their stories. I want to know your story. I want to know what you were doing before your startup (and how that helped prepare you), how you thought of your idea, how you validated your assumptions, how you grew your business, and… everything in between (but all in less than five minutes of time).

Great founders are great storytellers. The great storytellers I have come across invite me into their companies' journeys, and leave me actually caring about their success.

On the opposite side of the spectrum, the founder who gives short responses and shows no real connection to their work (giving off the vibe that this is just another startup for them) leaves me unattached to them and their business.

Venture capitalists are more accessible than you might think

Perhaps, I gave this point away when I said that I was sending several emails and LinkedIn messages to founders (which sounds a little desperate), but VCs are way more accessible than you may think. Before working with New Stack Ventures, I had this perception that VCs were extremely hard to reach, exceptionally busy, and a little bit scary. And while one of the two latter characteristics still remains true, I can say with certainty that VCs are not hard to reach.

I can't speak for everyone in venture capital, but I do know that the VCs I work with will respond to founders who message them. Putting yourself out there, as a founder, can lead to advice (which bodes well for your business), a new connection in the industry (which bodes well for your network), and even an investment (which bodes well for the future of your startup). In the end, VCs are spending hundreds of hours, searching for a tractable startup that will change the game, and your startup could be the very gem they are looking for.

So, be bold, be responsive, and tell your story to any and every VC who will listen. I'm all ears.

Note: I was inspired to write this piece by by The Full Ratchet's tips for fundraising entrepreneurs, I thought I would share.

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Christa Westheimer is a Rice University student and the managing director at Rice Ventures. She is a current venture fellow at Chicago-based New Stack Ventures.

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Building Houston

 
 

Here's your one-stop shop for innovation events in Houston for December. Photo via Getty Images

Houstonians have yet another good batch of in-person and online innovation events, and you and your tech network need to know about them.

Here's a roundup of virtual events not to miss this December — like pitch nights, workshops, conventions, and more.

Note: This post might be updated to add more events.


December 1 — 2022-2023 UH Energy Symposium Series

The Division of Energy and Innovation, along with the UH Center for Carbon Management in Energy, are hosting a day-long symposium to discuss pathways and solutions to make Texas carbon neutral by 2050. UH experts and energy industry partners will serve as panelists to discuss the drivers, opportunities, and challenges for change, and more.

The event is on Thursday, December 1, from 9 am to 7 pm, at University of Houston (Houston Room - University of Houston Student Center South). Click here to register.

December 5 — Pumps & Pipes: Ion to Infinity

Highlighting innovations in Web3, Artificial Intelligence, Extended Reality, and Robotics, attendees will hear from visionaries across medicine, energy, and aerospace who are developing and launching technologies in these fields.

The event is on Monday, December 5, from 8 am to 3 pm at The Ion. Click here to register.

December 6 — Softeq Venture Studio Demo Day

The Softeq Venture Studio's 2H 2022 cohort is the largest yet with 22 member companies, which brings the total portfolio to 49 companies. This cohort includes entrepreneurs from several global locations as diverse as the United Kingdom, Iceland, Mexico, and Peru. In this capstone event, founders have three minutes each to present their pitch deck, demo their product, outline their ask, and answer questions.

The event is on Tuesday, December 6, from 8 am to 3 pm at The Ion. Click here to register.

December 7 — Houston Veterans In Residence Showcase

Bunker Labs’ Veterans in Residence Showcase is a nationwide event, celebrating over 500 veteran and military spouse entrepreneurs launching their startups and businesses.

The event is on Wednesday, December 7, from 6 to 8 pm at Sesh Coworking. Click here to register.

December 8 — 8th Annual SWPDC Symposium on Pediatric Device Innovation and Business Meeting:

The 8th Annual SWPDC Symposium on Pediatric Device Innovation and Business Meeting will feature the keynote presentation "Non-Dilutive Federal Funding for Pediatric Device Startups" by Michael Heffernan, Director of Research & Technology at Fannin Innovation Studio.

The event is on Thursday, December 8, from 4 to 7 pm, at the Queensbury Theatre. Click here to register.

December 8 — HAN Holiday Party

Join the Houston Angel Network for their annual party.

The event is on Thursday, December 8, from 6 to 8 pm, at Postino City Centre. Click here to register.

December 10 — TXRX Holiday Make-a-thon

Get your festive fun on by participating in one of our hands-on workshops. Learn more about how we make through our live demos.

The event is on Saturday, December 10, from 3 to 6 pm, at TXRX. Click here to register.

December 13 — Future of the Houston Region

The reimagined Future of the Houston Region event features one of the fastest-growing areas in the Houston region - Montgomery County. Conversations will be focused on the county’s rapid growth, business developments within the area, future plans of expansion and its overall importance to the region.

The event is on Tuesday, December 13, from 10:30 am to 1:30 pm at The Woodlands Waterway Marriott. Click here to register.

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