Chris De Ayala, a UT McComb School of Business graduate working in banking, specifically in venture debt at the Bank of California shares insights into the role of venture lending, emphasizing its value to VC-backed startups by offering non-dilutive capital to extend their runway post-equity rounds. He details the ideal timing for startups to seek venture debt, the factors influencing the amount of debt a startup can secure, and the importance of the relationship with VC firms in this process. The discussion also covers the changing landscape of venture debt, the impact of recent economic shifts on startups and investments, and the evolution of the Austin startup ecosystem. Chris highlights the negotiation aspect of venture debt terms, the strategic use of venture debt for growth without dilution, and the bank's perspective on venture debt as a tool for deposit growth and long-term customer relationships.

Key Takeaways:

• Providing debt solutions to VC-backed startups
• Role of venture debt as a non-dilutive capital source for early-stage companies
• Ideal timing for seeking venture debt
• Relationship between equity round size and available venture debt
• Bank's criteria for assessing startups with an emphasis on investor syndicate and runway
• How to negotiate venture debt terms
• Growth of venture debt space
• Competition between traditional banks and neo-banks
• Trends and changes in the Austin startup ecosystem
• Importance of building networks in the venture financing industry

Mentions:

LinkedIn: https://www.linkedin.com/in/chris-de-ayala-39976a125/

Check out the Funds & Founders Community:

Reach out to Abhi at abhinavsinha.podcast@gmail.com

Website: fundsandfounderspodcast.com

Jake O'Shea, currently a Principal at Antler in Austin, delves into his rich background in the startup ecosystem. With experiences ranging from director roles at Capital Factory to mentoring at accelerators, Jake discusses the vibrant startup ideas and trends in Austin, emphasizing the ubiquitous role of AI in modern software development. He sheds light on Antler's industry-agnostic approach to investing, focusing on founder potential over specific sectors. Jake also touches upon the critical importance of knowing your customer base and making decisions regarding value propositions, rather than jumping straight into product development. He discusses the nuances of venture capital, offering insights into the dos and don'ts of early-stage fundraising and the significance of founder-market fit. Jake highlights emerging AI applications, from personalized learning to headless applications, and the potential for AI to redefine software interactions through natural language processing. A must-listen episode for aspiring entrepreneurs and anyone interested in the intersections of AI, startups, and venture capital.

Key Takeaways:

• Conviction and thorough customer research are key to creating value as an entrepreneur
• Building a supportive community fosters collaboration and growth for entrepreneurs in AI
• Networking and Fundraising Insights for Founders to create value
• Understanding investor risks and founder execution capabilities can influence funding decisions
• Investors prioritize founder execution, building conviction amidst market and tech risks
• Investing in post-product market fit fuels growth and helps seize adjacent opportunities for expansion
• Measuring product success through retention and engagement validates the right value proposition
• Future tech and how they will reshape interactions and revolutionize tech engagement
• De-risking your startup: market, technology, and execution
• The future of AI: personalized learning and verticalized software

Mentions:

Website: https://www.antler.co/

Website: https://jakeoshea.com/

LinkedIn: https://www.linkedin.com/in/jake-oshea/

In episode 15, Mike Ditson joins us today to talk product management, sales, and innovation! Currently, Mike is the VP of Product Strategy at Envato Group and a lecturer in product management. He shares valuable insights on the importance of sales for product leaders, how to approach building a competent sales team, especially for founders without a sales background (identifying well that we’re all in sales) and provides advice for early-stage companies and product market fit. Moreover, Mike discusses the evolution of top-of-the-funnel strategies in B2B SaaS, his perspective on learning and adapting to changes in the tech landscape, and highlights the potential impact of Gen AI on product management. Wondering how to set pricing, how to get customers, and the ends and outs of product management? Then this is the episode for you!

Key Takeaways & Timestamps:

(01:50) Welcome to Funds and Founders: Meet Mike Ditson

(02:41) How Can a Founder Get Good at Sales? (Or Find Someone Who Is.)

(05:24) Building a Competent Sales Team for Startups

(10:46) Transitioning from Product Management to Leadership

(19:53) The Art of Pricing in B2B SaaS

(24:02) Understanding Product Market Fit in B2B SaaS

(31:27) Navigating the Complexities of Selling to Universities and Enterprises

(32:33) Evolving Strategies in B2B SaaS Marketing

(35:36) The Importance of Building Reference Customers Early On

(39:00) Adapting to the Changing Landscape of Product Management

(39:32) Leveraging AI and Tools in Product Management

(45:08) Recommendations for Early Product Managers and Founders

(50:01) Exploring the Impact of Generative AI on Content Creation

Mentions:

Mike’s LinkedIn: https://www.linkedin.com/in/mikeditson/

• Dollarizations Discipline
• Crossing the Chasm
• The Acquired Podcast
• Disciplined Entrepreneurship
• Orbit from MIT

Check out the Funds & Founders Community:

Reach out to Abhi at abhinavsinha.podcast@gmail.com

Website: fundsandfounderspodcast.com