After talking with dozens of seed stage entrepreneurs at the Atlanta Tech Village I’ve come to see a variety of patterns. Now, no two entrepreneurs are the same and no two startups are the same, but there are some general “business physics” that exist. Here are the five common mistakes entrepreneurs make after raising a seed round:
- Not doing whatever it takes to get 10 unaffiliated customers as quickly as possible
- Not following the 3:1 customer acquisition to engineering spend ratio (depending on the size of the seed round)
- Not budgeting to make the money last at least 18 months
- Not understanding there’s a Series A crunch before trying to raise the next round and the metrics required to raise a Series A
- Not updating the Simplified One Page Strategic Plan every quarter
The next time you talk to an entrepreneur that has just raised their seed round, share these five common mistakes and help them not make the same errors.
What else? What are some more common mistakes entrepreneurs make after raising a seed round?