Illustrations by Ray Vella
Stephanie Hanbury-Brown
Managing Director
Golden Seeds
• Being Unwilling to Give Up Control. I always ask entrepreneurs if they are able to say yes to two things: First, are you willing to give up the reigns as CEO? Second, are you willing to sell the company? Most are definitely willing to sell the company, but the first question is more difficult. I tell them this because it can be a real deal killer for a lot of investors.
• Saying You’re a Serial Entrepreneur. My eyes glaze over when I hear this. Lots of people use the term. But when I dig a little deeper, that is rarely the case. They might have been involved in a number of startups, but they haven't led them. People who call themselves serial CEOs were not always a successful entrepreneur in a prior life.
• Not Presenting Some Market Benchmarking. I always find it difficult when entrepreneurs come in with crazy valuations—like zero revenues but worth $10 million. That suggests they don’t understand what a valuation means or how to value an early-stage company, and they haven’t tested it out with those who do.
