Why founders killed the friends & family round

Building on last week’s discussion ‘the hard work for the oversubscribed’ with an open discussion below:

As more founders replace the friends and family round with the new operator-angel round to de-risk technical dependencies, accelerate time to launch and build momentum for the next round.

Slack’s head of self-serve product Fareed Mosavat on why early stage SaaS companies need to measure more than early-stage investor metrics. Subscribe to get the full deck delivered to your inbox.

The 3 goals of an operator-angel round:

  1. Accelerate your startup’s time to market by driving strategic alignment with core integration partners and founders/operators who can open doors quickly.

  2. Augment your team’s current capabilities with operators who can immediately deliver a high value per dollar invested through a focused body of work and immediate access to network.

    • Choose angels based on relevant operating experience

    • Create goals and focused body of work to leverage an individual angel’s superpower

    • Continue to build momentum with angel until your startup has enough momentum to hire someone full-time. Leverage angel’s peer network to source, vet and onboard someone full-time

  3. Act on first mover advantage and engage high-signal angels in a way that new entrant’s will be viewed as a fast follow with a low chance of becoming the category leader.

    • Build your sector-aligned CEO network to establish credibility with users & investors

    • Leverage early investor alumni networks to scale hiring momentum & culture

    • Box out competition with a bottom-up community of early believers and evangelists

Leave your questions/thoughts/comments below: