How Seed VCs Think About Deep Tech Startups

Raising money is a low probability game. You need to understand how investors think to be able to raise money successfully for your startup.

During this course, I will be teaching how seed investors think about and analyze deep tech startups. We will have in-depth conversations around startups with several real world investors.

Designed for tech entrepreneurs and aspiring entrepreneurs interested in building deep tech startups, this course provides insights into the minds of several seed investors operating in this space for many years in their own words.

As you may have already learned in my courses, the early stage investment ecosystem has fragmented, it’s no longer just seed and Series A. The seed part has fragmented to friends and family financing, pre-seed, seed, post-seed, small Series A, and large Series A.

In this course, we will do a deep dive into the seed stage of deep tech startups

If you want introductions to Angels and VCs, a fundable and validated business is a must.

A fundable business with warm introductions is the fastest way to get funded. We can introduce you to angels and VCs, if your idea is fundable and validated. Sadly, less than 1% of businesses are fundable. What that means is more than 99% of the entrepreneurs waste their energy on pitching their unfundable businesses to investors. Hugely unproductive and unhealthy.

There is a reason why savvy entrepreneurs have been using the Bootstrap First, Raise Money Later strategy.

However, deep tech is often an expensive startup category to build. How do you do it? How do investors consider funding concept-stage deep tech?

This course is designed to help deep tech entrepreneurs understand the thought process of seed investors.

The 1Mby1M courses are all heavily based on interview-based case studies on Innovation, Business Models, Go To Market Strategies, Validation Principles, and various other nuances of an entrepreneur's journey. We offer extensive opportunities for entrepreneurs to learn the lessons from the trenches from successful entrepreneurs who have done it before and Investors who support their ambition.

What's inside

Learning objectives

Through in-depth interviews with prominent investors, gain insights on how investors analyze deep tech startups.
When venture capitalists are likely to fund deep tech startups.
What investor-entrepreneur fit is and how to achieve it.
Why 99% of entrepreneurs who seek funding get rejected by vcs.

What some of the key considerations are for investors when they evaluate startups.
How entrepreneurs can position themselves for success.
What are some of the common mistakes that entrepreneurs make when pitching their startups to vcs.
The fastest way to find the relevant sources of funding while building deep tech startups.

Through in-depth interviews with prominent investors, gain insights on how investors analyze deep tech startups.
When venture capitalists are likely to fund deep tech startups.
What investor-entrepreneur fit is and how to achieve it.
Why 99% of entrepreneurs who seek funding get rejected by vcs.
What some of the key considerations are for investors when they evaluate startups.
How entrepreneurs can position themselves for success.
What are some of the common mistakes that entrepreneurs make when pitching their startups to vcs.
The fastest way to find the relevant sources of funding while building deep tech startups.

Syllabus

Understand how investors analyze and think about deep tech startups.

Introduction

How Seed Investors Think About Deep Tech Investing

Entrepreneur - Investor Fit

Ashmeet Sidana is Founder of Engineering Capital, a seed-stage venture fund focusing on infrastructure technology. He has a lot of insights to offer, and delivers one particular piece of wisdom that is close to my heart. He says, “Funding is like candy. Don’t eat too much candy. Whole wheat bread and proteins are customers and revenues. That’s what you should focus on.” Brilliant analogy, don’t you think?

Ashmeet Sidana, Chief Engineer at Engineering Capital, shares a wonderful presentation on Market Sizing.

Ashmeet Sidana, Chief Engineer at Engineering Capital, is the founder of a small venture firm that we have a great deal of respect for, and a personal friend. This is a wonderful conversation.

Asheem Chandna, General Partner at Greylock Ventures, discusses the topic of funding fat startups, something Asheem has done routinely and one of the very few VCs still doing so. Very interesting discussion.

Karthee Madasamy is Founder and Managing Partner at Mobile Foundation Ventures. We discuss the nuances of Deep Tech investing.

Rajeev Madhavan, Founder and General Partner at Clear Ventures, was first a highly successful serial entrepreneur, and brings to the VC game an entrepreneur’s view of the world. Rajeev highlights the Series A gap in a big way.

Rajeev Madhavan is Founder and General Partner at Clear Ventures, a firm focused on seed-stage deep tech investing.

Naganand Doraswamy, Managing Partner and Founder at Ideaspring Capital, adds to our thesis on great investment opportunities within the sub $100 million exit space.

Eric Benhamou is Founder and General Partner, Benhamou Global Ventures.

Please pick your favorite case studies from the course and run them through a validation and positioning exercise. Use the 1Mby1M Self-Assessment questionnaire and try to answer each question in it.

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Features interviews with venture capitalists, offering firsthand perspectives on what investors seek in deep tech startups, which can help entrepreneurs tailor their pitches and strategies

Focuses on the seed stage of funding, which is helpful for startups navigating the initial investment landscape and seeking guidance on securing early capital

Explores the concept of 'Entrepreneur-Investor Fit,' which is crucial for building strong relationships with investors and securing funding aligned with the startup's vision

Highlights the importance of business validation before seeking funding, which can save entrepreneurs time and resources by focusing on viable and fundable ideas

Discusses the 'Bootstrap First, Raise Money Later' strategy, which may be difficult for deep tech companies that often require significant upfront investment

Emphasizes that less than 1% of businesses are fundable, which may discourage some entrepreneurs who are just starting out or who have not yet validated their ideas

Reviews summary

Vc thinking for deep tech startups

Due to the lack of provided review data, a meta-analysis of student feedback is not possible. The following summary is inferred from the course description and syllabus, reflecting potential takeaways. According to the course materials, learners can expect to gain neutral insights into how seed VCs analyze neutral deep tech startups, including understanding the neutral investor mindset and common reasons for rejection. The course features neutral interviews with prominent investors, providing a look into their decision-making processes and perspectives on topics like market sizing and funding strategies. It highlights the importance of building a neutral fundable business and suggests strategies like neutral bootstrap first. Learners may find value in the neutral validation exercises and self-assessment tools mentioned.

Course structured around real investor interviews.

"The format based on in-depth interviews makes the content feel authentic."

"It's helpful to learn through case studies and real conversations."

"The course uses interviews to illustrate key concepts about funding."

Offers actionable strategies for seeking funds.

"The discussion on why most startups fail to get funded was eye-opening."

"Learning about the 'Bootstrap First' strategy provided a different perspective."

"The emphasis on validation principles seems very practical for entrepreneurs."

Specifically tailored to deep tech startups.

"The course's focus on deep tech investing is highly relevant to my startup."

"It addressed the unique challenges of raising funds for deep tech specifically."

"I appreciated that it wasn't just generic startup funding advice."

Helps understand investor evaluation criteria.

"I now have a better grasp of investor-entrepreneur fit."

"It helped me understand what VCs are really looking for in a pitch."

"Understanding their analysis framework will improve my approach."

Provides perspectives from experienced VCs.

"Hearing directly from VCs on how they evaluate startups was key for me."

"The interviews with seasoned investors offered valuable real-world perspectives."

"Understanding the specific thought processes shared by VCs was insightful."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in How Seed VCs Think About Deep Tech Startups | Sramana Mitra with these activities:

Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist

Show steps

Familiarize yourself with the venture capital deal-making process to better understand investor perspectives and negotiate favorable terms.

View Startup Boards: A Field Guide to Building and... on Amazon

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Obtain a copy of 'Venture Deals'.
Read the book, focusing on term sheets.
Take notes on key concepts and terms.
Reflect on how these concepts apply to deep tech.

Review Startup Valuation Methods

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Strengthen your understanding of startup valuation techniques to better assess your company's worth and communicate its potential to investors.

Browse courses on Startup Valuation

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Research common startup valuation methods.
Practice applying these methods to sample startups.
Identify the strengths and weaknesses of each method.

Develop an Investor Pitch Deck

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Craft a compelling pitch deck tailored to seed investors, highlighting the key aspects of your deep tech startup and its potential for success.

Show steps

Develop content for each section.
Research successful pitch decks.
Outline the key sections of your pitch deck.
Refine your pitch deck based on feedback.

Four other activities

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Show all seven activities

Create a Blog Post on Deep Tech Investing Trends

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Research and write a blog post summarizing current trends in deep tech investing, demonstrating your understanding of the market landscape.

Show steps

Research current trends in deep tech.
Outline the structure of your blog post.
Write the blog post, citing sources.
Edit and proofread your blog post.

Attend a Startup Funding Conference

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Attend a conference focused on startup funding to network with investors and learn about current investment opportunities.

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Identify relevant startup funding conferences.
Register for the conference.
Prepare an elevator pitch for your startup.
Network with investors and other attendees.
Follow up with promising contacts.

Participate in a Mock Pitch Session

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Practice your investor pitch with peers to receive constructive feedback and refine your delivery.

Show steps

Find peers interested in practicing pitches.
Schedule a mock pitch session.
Deliver your pitch and receive feedback.
Provide feedback to your peers.

Zero to One: Notes on Startups, or How to Build the Future

Show steps

Explore contrarian ideas about building startups and apply them to your deep tech venture.

View Zero to One Summary on Amazon

Show steps

Obtain a copy of 'Zero to One'.
Read the book, focusing on Thiel's core arguments.
Reflect on how these ideas apply to deep tech.
Discuss the book with other entrepreneurs.

Career center

Learners who complete How Seed VCs Think About Deep Tech Startups | Sramana Mitra will develop knowledge and skills that may be useful to these careers:

Startup Founder

The role of a Startup Founder involves creating and leading a new business venture. The course is specifically designed for tech entrepreneurs interested in building deep tech startups. It offers insights into the mindset of seed investors, teaching you how they analyze deep tech startups and what factors influence their investment decisions. This knowledge helps a Startup Founder tailor their business model and pitch to better align with investor expectations, increasing the likelihood of securing funding. Understanding the early-stage investment ecosystem and the importance of investor-entrepreneur fit can significantly improve a Startup Founder's chances of success.

See salaries and explore the career path for Startup Founder

Chief Executive Officer

The Chief Executive Officer or CEO is responsible for the overall strategic direction and performance of a company. For a CEO of a deep tech startup, understanding how seed investors think is paramount. This course delivers insights into what Venture Capitalists think about deep tech investing and when they are likely to provide funding. Also discussed are how the entrepreneur and investor come to find each other and if they are a good fit. These are critical for any entrepreneur to know.

See salaries and explore the career path for Chief Executive Officer

Angel Investor

An Angel Investor provides capital for startups, usually in exchange for ownership equity. This course is directly relevant to an Angel Investor, as it provides insights into how seed investors think about deep tech startups. This involves understanding if and when venture capitalists are likely to fund deep tech startups, what investor-entrepreneur fit is and how to achieve it, and the key considerations for investors when they evaluate startups. A better understanding of these criteria can help improve investing success rates.

See salaries and explore the career path for Angel Investor

Venture Capital Analyst

A Venture Capital Analyst plays a pivotal role in assessing potential investment opportunities. This analyst conducts market research, analyzes financial statements, and evaluates the viability of startups, particularly those in the deep tech sector. The course provides firsthand insights into how seed investors think about deep tech, which helps analysts better understand investor perspectives and decision-making processes. By examining real-world investor interviews and case studies, a Venture Capital Analyst gains practical knowledge of investor-entrepreneur fit, key investment considerations, and common pitfalls during startup pitches. These will help the analyst better assess companies.

See salaries and explore the career path for Venture Capital Analyst

Incubator Manager

An Incubator Manager is responsible for overseeing the operations and programs of a startup incubator, providing resources, mentorship, and support to early-stage companies. The course may be useful for an Incubator Manager as they work with deep tech startups. Understanding how investors think about these companies, the factors they consider, and the common mistakes entrepreneurs make can help the Incubator Manager better prepare their startups for fundraising and success.

See salaries and explore the career path for Incubator Manager

Accelerator Program Director

An Accelerator Program Director manages and oversees the activities of a startup accelerator program, providing intensive mentorship, resources, and networking opportunities to participating companies. The course may inform an Accelerator Program Director, providing insights into how seed investors evaluate deep tech startups. With this knowledge, the Program Director can refine the accelerator's curriculum and mentorship to better prepare startups for fundraising and growth.

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Business Development Manager

A Business Development Manager focuses on identifying and pursuing new business opportunities to drive company growth. This often involves forming strategic partnerships and securing funding. The course can help a Business Development Manager understand how seed investors evaluate deep tech startups, allowing them to develop business strategies that align with investor interests. By learning about investor-entrepreneur fit and the common mistakes entrepreneurs make, a Business Development Manager can position their company more effectively, attract funding, and forge valuable partnerships to expand their business.

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University Technology Transfer Officer

A University Technology Transfer Officer helps to commercialize inventions and discoveries made by university researchers. The course may be helpful for a Technology Transfer Officer as they work with deep tech startups emerging from university labs. By understanding how investors think about deep tech, the Technology Transfer Officer can better prepare startups to pitch their ideas and secure funding, increasing the likelihood of successful commercialization and technology transfer.

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Private Equity Associate

A Private Equity Associate assists in evaluating and managing investments in private companies. This course may be helpful for a Private Equity Associate, providing perspectives on how seed investors analyze deep tech startups, including key considerations for evaluation. Moreover, the course addresses the common mistakes entrepreneurs make when pitching their startups, which enhances the Associate's ability to gauge the strength and viability of potential investments.

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Product Manager

A Product Manager is responsible for the strategy, roadmap, and feature definition of a product or product line. This role requires a deep understanding of market needs and customer demands, as well as the ability to translate those insights into a compelling product vision. The course may assist a Product Manager in understanding how investors think about deep tech startups, which can inform product development decisions. By understanding investor priorities and market trends, a Product Manager can align product strategies with investor expectations, potentially attracting funding and support for new initiatives.

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Investment Banker

An Investment Banker advises companies on raising capital through the issuance of stocks and bonds. They also provide guidance on mergers and acquisitions. The course may assist an Investment Banker in understanding how seed investors evaluate deep tech startups. This understanding can help them advise deep tech companies on how to best position themselves to attract funding from venture capitalists or through other capital-raising activities.

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Technology Consultant

A Technology Consultant advises businesses on how to use technology to meet their objectives. This consultant assesses technological needs and recommends solutions. The course may assist a Technology Consultant in understanding how investors analyze deep tech startups, which can inform their consulting recommendations. By understanding the investment landscape, a Technology Consultant can also help their clients position themselves to attract funding.

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Chief Technology Officer

The Chief Technology Officer or CTO is responsible for overseeing all technical aspects of a company, including research and development, technology infrastructure, and product development. While not directly related to finance, the CTO may find it helpful to understand how investors perceive deep tech startups. Understanding investor priorities and assessment criteria may help the CTO align the company's technology strategy with investor expectations, potentially increasing the likelihood of securing funding or partnerships.

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Research and Development Manager

A Research and Development Manager oversees the planning, direction, and coordination of research and development activities within a company. While not directly related to finance, the course may be useful for an R&D Manager in understanding how investors view deep tech startups. Knowing what investors look for and what considerations they prioritize can help the R&D Manager better align their projects with potential funding opportunities and company strategy.

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Grants Manager

A Grants Manager oversees the process of securing and managing grant funding for organizations. This course may inform a Grants Manager who works with deep tech startups, providing an understanding of how investors think about these companies. This knowledge can help the Grants Manager better position their clients to secure grant funding by aligning their applications with investor expectations and priorities.

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How Seed VCs Think About Deep Tech Startups

Sramana Mitra

What's inside

Learning objectives

Syllabus

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Reviews summary

Vc thinking for deep tech startups

Activities

Career center

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