E1018 #AskJason! Avoiding first-time founder mistakes, big-tech layoffs, lead investors & more!

TL;DR

This episode of "This Week in Startups" features Jason Calacanis answering various questions related to startup investing and entrepreneurship, including topics like angel investing, visa issues for international students, the Softbank crisis, first-time founder mistakes, and more.

Transcript

hey everybody hey everybody we've got a great ass Jason for you today I've got somebody who's coming into a series a as an angel investor and they want to know how to shape their bachelor they put in five ten or should they go to jump the fence and put in twenty five fifty huh I answer that question and somebody is running a company as an internati... Read More

Key Insights

• 😇 Starting small and increasing investments based on performance is a common strategy for angel investors.
• 👷 International students can navigate visa issues by considering options like moving to Canada or finding a co-founder to work on the startup.
• 🇦🇪 The Softbank crisis highlights the importance of focusing on profitability and unit economics in the startup ecosystem.
• 🖤 Common mistakes made by first-time founders include lack of focus, not understanding the target customer, building for market share over profitability, and neglecting legal considerations.

Questions & Answers

Q: How should an angel investor size their investments based on the round they initially invest in?

Jason advises starting small and increasing investments in subsequent rounds based on the performance of the company, while also considering the investor's overall bankroll.

Q: How can international students on F1 visas run startups and generate income off-campus?

Jason suggests options like moving to Canada, finding a co-founder to work on the project, or treating the startup as a project until graduation when work restrictions are lifted.

Q: Is the Softbank crisis the new normal? How can startups focus on profitability?

Jason explains that the focus on profitability is a natural evolution of the startup ecosystem, as public market investors are becoming more risk-averse and want to see positive unit economics.

Q: What are common mistakes made by first-time founders?

Lack of focus, not understanding the target customer, building for market share over profitability, and neglecting legal considerations are common mistakes made by first-time founders.

Q: How can a startup broker deals for small businesses looking to sell?

Jason suggests targeting mid-market companies that have done acquisitions in the past and building a networking community around the topic of M&A through platforms like podcasts, blogs, and social media.

Summary & Key Takeaways

• Jason shares advice on how angel investors can size their investments based on the round they initially invest in, suggesting starting small and increasing investments in subsequent rounds based on performance.

• He advises international students on how to navigate visa issues when running a startup in the US, and suggests considering options like moving to Canada or finding a co-founder to work on the project.

• Jason discusses the Softbank crisis and the shift towards profitability in the startup ecosystem, emphasizing the importance of focusing on unit economics and building sustainable businesses.

• He highlights common mistakes made by first-time founders, such as lack of focus, not understanding the target customer, building products for market share over profitability, and neglecting legal considerations.

• Jason also talks about the potential of brokering deals for small businesses and building software for family offices.