You can\u2019t raise money remotely \u2014 or can you?<\/p>\n\n\n\n
Joe Blair of Cota Capital recently sat down with Arc\u2019s Christine Orchard to unpack this very question, give his tips for remote pitching, and talk about why ordinary people\u2019s stories have power.<\/p>\n\n\n\n
About Joe Blair<\/strong><\/p>\n\n\n\n Joe Blair is an engineer, turned entrepreneur, turned early-stage venture investor. At San Francisco-based Cota Capital, he invests in both public and private companies, and has an interest in remote work as an investment category. He also is an active thought leader in the remote work space, and host of the Epic Human Podcast.<\/p>\n\n\n\n Looking for top talent fast? See how <\/em>Arc<\/a> can help you:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Find developers, designers, marketers, and more Hire top talent with Arc risk-free \u2192<\/strong><\/a><\/p>\n\n\n\n According to Joe, investing in remote work can mean two different things:<\/p>\n\n\n\n According to Joe, VCs currently have a \u201cmajor appetite\u201d to invest in remote work tools<\/strong>. This interest is being reflected in the valuations of companies that produce these tools \u2014 and how quickly they are able to raise capital.<\/p>\n\n\n\n Where a company may have needed 18 months to raise funds<\/a> pre-COVID, \u201cyou\u2019re seeing rounds that are happening within six months of a company closing a previous round.\u201d Against this background, Joe says there\u2019s now a debate happening about whether these companies are over-hyped\/-valued or not.<\/p>\n\n\n\n Joe\u2019s thoughts for people looking to invest in remote tool companies:<\/p>\n\n\n\n I would argue if you want to invest in the first category \u2014 which is remote tools companies \u2014 because oftentimes they eat their own dog food and they are remote-first companies internally themselves.<\/p>\n<\/blockquote>\n\n\n\n When it comes to investing in remote companies, Joe noted, VCs are having to confront their own views on the fundamentals of investing. This may involve seeking guidance and information from trusted sources such as “Best Investment Newsletters<\/a><\/strong>” to adapt to the changing landscape of investments, especially in remote or digital-oriented businesses.<\/p>\n\n\n\n In the wider view, Joe is currently interested in figuring out the long-term implications of COVID and the accelerated adoption of remote work not just for productivity, but for every sector of the economy.<\/p>\n\n\n\n We\u2019re still trying to wrap our heads around what this actually means for our broader economy and not just this little niche, but everyone.<\/p>\n<\/blockquote>\n\n\n\n Read More<\/strong>: How to Conduct a Remote Technical Interview Successfully: 7+ Tools & Tips<\/a><\/p>\n\n\n\n One of the unique challenges for founders after the shift to remote work: pitching to VCs remotely. How do you establish the necessary levels of trust and information-sharing?<\/p>\n\n\n\n Before even considering pitching remotely, there\u2019s some groundwork to be done. According to Joe, you need to:<\/p>\n\n\n\n You can’t go pitch to ten VCs and expect to get a term sheet, unless you\u2019ve done it a million times. If you’re relatively new to the pitch game you need to build the funnel just like you would in sales; you need to have a very wide funnel, and you need to pitch to as many people as possible, because over time you will get better.<\/p>\n<\/blockquote>\n\n\n\n There can be big differences in pitching in-person versus remote when it comes to showing your personality and being able to create trust. To overcome this, your materials need to be 100% solid. As Joe put it:<\/p>\n\n\n\n The bar for pitch materials is higher virtually because you can’t rely as much on your personality in the room being able to take over. I think having very well crafted materials, showing a narrative that helps me (as the VC) walk through that logic \u2014 ideally before the call \u2014 is the best.<\/p>\n<\/blockquote>\n\n\n\n While having your pitch documents ready to go is critical, don\u2019t forget the pre-call social groundwork. Since you can\u2019t rely on the physical network effect of being in (e.g.) Silicon Valley anymore, you need to explore virtual ways to increase connection<\/strong>.<\/p>\n\n\n\n Joe suggests exploring people both you and the investor have in common. This can not only open doors to initial meetings, but also strengthen your credibility in the VC\u2019s eyes. As he puts it, it sends the message:<\/p>\n\n\n\n \u201cHey, I’m not just some random person in some random part of the world that might be trying to mislead you in some way.\u201d It’s more like, \u201cHey, we all know the same people, or at least we have a few people in common that can provide credibility, for me as an entrepreneur.\u201d<\/p>\n<\/blockquote>\n\n\n\n Joe also advises against underestimating your public presence\u2019s effect. As he puts it:<\/p>\n\n\n\n One persona that I’m attracted to, right now, is the persona of the founder who’s also a community leader.<\/p>\n<\/blockquote>\n\n\n\n Founders who run podcasts, build Slack communities, or are social media thought leaders are all interesting<\/strong> to Joe when he\u2019s doing his research:<\/p>\n\n\n\n It’s a unique edge that can provide you some real business advantages, in the short and long term. […A founder] who is a leader and can amass attention from peers in a specific niche… even before they have real market-ready product is super intriguing to me.<\/p>\n<\/blockquote>\n\n\n\n Before you walk in the (virtual) door, you need to understand that your team will come under scrutiny. Joe is asking himself the following things about potential companies:<\/p>\n\n\n\n What does the team look like? What’s their background? What are their experiences? What’s their unique insight?<\/p>\n<\/blockquote>\n\n\n\n What founders need is:<\/p>\n\n\n\n The team that’s going to be one of the best teams in the world to execute on that plan. So it’s a combination of the right insight, the right team, and then the right execution plan. And then layered on top of that, of course, is the preparation and other tactical things you can do, to like, know your pitch backwards and forwards to prepare very strong and well-designed materials.<\/p>\n<\/blockquote>\n\n\n\n Want to distinguish yourself from the pack right at the start of your pitch? Joe suggests flipping the interview:<\/p>\n\n\n\n I find that the best entrepreneurs, at the very beginning of a discussion with a VC, will ask the VC to start talking first.<\/p>\n<\/blockquote>\n\n\n\n Drill down into why the VC\u2019s firm is different from the others, and ask them what value they bring to companies they invest in. This signals that you have discriminating taste when it comes to who you\u2019re willing to work with, according to Joe. It also signals you know your own value, and want to work with someone similar.<\/p>\n\n\n\n Read More<\/strong>: 9+ Project Management Tools for Managing & Working With Developers<\/a><\/p>\n\n\n\n Part of developing your persona as a founder is being able to show your personality and story to the world. Whether it\u2019s networking, or pitching to investors, being able to tell a story is a critical skill.<\/p>\n\n\n\n Joe is generally interested in stories, and believes in \u201cthe power of the human voice, the power of stories from ordinary people.\u201d Inspired by hearing his grandmother\u2019s life history, Joe created the Epic Human Podcast, focused on interviewing:<\/p>\n\n\n\n [P]eople who overcome odds, people who are risk takers, and people who are very hard workers \u2014 and that hard work leads to high performance in any measure, or any activity, or any facet of life, whether it’s professional or non-professional.<\/p>\n<\/blockquote>\n\n\n\n You can check out the Epic Human Podcast here<\/a>.<\/p>\n\n\n\n The episode closed out with some quick questions and answers:<\/p>\n\n\n\n You can also try <\/em>Arc<\/a>, your<\/em> shortcut to the world’s best remote talent:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Access 450,000 top developers, designers, and marketers <\/a>Try Arc and hire top talent now \u2192<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Ready to raise funds, but can’t meet in person? Cota Capital’s Joe Blair shares advice on raising money remotely and more.<\/p>\n","protected":false},"author":6,"featured_media":530,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-leadership"],"yoast_head":"\n
\u26a1\ufe0f Freelance or full-time remote + fully vetted<\/em>
\u26a1\ufe0f Save up to 80% with global hires<\/em><\/p>\n\n\n\nRemote Work Investing \u2014 Overhyped?<\/h2>\n\n\n\n
\n
\n
\n
\n
Pitching as a Remote Founder<\/h2>\n\n\n\n
Build Your VC Funnel<\/h3>\n\n\n\n
\n
\n
Pitch Preparation<\/h3>\n\n\n\n
\n
Social Capital Still Counts<\/h3>\n\n\n\n
Make Sure You Network Virtually<\/h3>\n\n\n\n
\n
Establish Your Public Persona<\/h4>\n\n\n\n
\n
\n
Have the Best Team<\/h3>\n\n\n\n
\n
\n
Flip the Script<\/h3>\n\n\n\n
\n
The Power of Stories<\/h2>\n\n\n\n
\n
Rapid-Fire Questions<\/h2>\n\n\n\n
\n
\u26a1\ufe0f Vetted and ready to interview<\/em>
\u26a1\ufe0f Freelance or full-time<\/em><\/p>\n\n\n\n