Amit Bhatti of 500 Startups: Honesty is the best policy: The importance of a good relationship between founders and investors
Amit Bhatti is a principal at 500 StartUps. He is part of its global portfolio management team where he helps select new investments for their flagship accelerator, as well as advise and manage their 500 portfolio. A lawyer by training, he previously served as the firm’s US corporate counsel where he oversaw investments from 500 global funds. Prior to being with 500 StartUps, Amit worked with technology companies on legal and financing issues across all stages of their lifecycle from startup to IPO or M and A (merger and acquisition).
Here’s a glimpse of what you’ll learn:
- [1:03] Stephanie introduces her guest, Amit Bhatti
- [2:27] Speed round with Amit Bhatti
- [5:46] Amit’s first major business ask
- [7:22] What Amit noticed is the usual mistake that entrepreneurs make when asking
- [10:34] Why mass pitch proposals won’t work
- [12:10] The best pitch that Amit has ever seen involves founders giving facts and perspective in their pitch
- [14:36] Asking for investments vs asking for help
- [16:33] The best way for an entrepreneur to understand an investor’s thesis
- [18:26] Why Crunchbase data should be taken with a grain of salt and why companies choose to share or withhold information
- [21:48] Why it’s important for founders to know the competitive landscape of the business they’re in
- [25:37] The value of customer feedback
- [27:36] Why credible and honest information is valued by 500 Startups
- [29:52] The importance of fostering a good investor-founder relationship
- [32:06] Why a founder should drive the business even after getting an investor
- [38:36] Amit’s message for founders
In this episode…
Are you a founder who’s preparing thinking of submitting an investment proposal and get funding for your business? Are you considering the possibilities of growing your company through a merger and acquisition but aren’t quite sure of how to move forward? Are you even asking the right questions that will help you build a strong portfolio? These are just some of the major considerations that you need to think about before coming to an investor, says Amit Bhatti of 500 StartUps.
In this episode of What’s Your Ask, Stephanie Sims talks to Amit Bhatti about the impact of giving an honest picture of your company when faced with an investor versus sugar-coating your facts and why fostering a good relationship between a founder and an investor is crucial to the success of the investment. It’s a packed episode of learnings for both founders and investors so make sure to tune in.
Resources Mentioned in this episode
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