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re: Seed rounds/family and friends rounds

Posted on 4/18/18 at 2:38 pm to
Posted by L S Usetheforce
Member since Jun 2004
22805 posts
Posted on 4/18/18 at 2:38 pm to
Two companies: one is a mega name(Tesla).....as in a revenue generator. The red flag is that besides this name they only have 6 other companies and they are not an app that can be utilized to make money by individual users; its tailored to employers.
This post was edited on 4/18/18 at 2:42 pm
Posted by LSUShock
Kansas
Member since Jun 2014
4924 posts
Posted on 4/18/18 at 2:46 pm to
If Tesla is actually a paying customer generating revenue for the business, than that checks box #1. Which leads to the second box, founders. Obviously someone in the startup had the chops to go sell the Tesla account. That would intrigue a lot of people. There’s certainly more to it, but I would think a founder who could sell to Tesla could sell to others as well.

If they really know their stuff, they will be able to explain exactly why they are raising to you. It’s pretty easy to weed out who’s actually doing something and who’s just talking/hoping for it when you peel the onion. Make sure they know their #s in and out.
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