The Startup Solution

In this episode, Heidi discusses how founders tend to swing between two extremes — thinking it's   not   all about them (when actually, it is), or believing it's   only   about them and their company (when it really isn't). She'll review both sides and point out what founders often get wrong — and how to get it right. More information: https://www.threshold.vc/podcast Fu rther reading: On the occa...

While the internal dynamics of a VC firm may feel like a black box, you can often infer what's going on based on how your VC is acting – if you know what to look for. In this episode, Heidi explains why many VC behaviors that seem confusing or inconsistent can make more sense once you understand the inner workings of venture funds and firms.  More information: https://www.threshold.vc/podcast/insi...

Founders need to understand investor priorities before they require investor action. The investor's 'zone of indifference' describes an issue that can be problematic. In this episode, Heidi explains what it is, when it comes into play, and how to identify the likelihood of an investor landing in the 'zone of indifference.'  More information: https://www.threshold.vc/podcast/understanding-your-inve...

Mastering cold emails is a superpower—one that can unlock dream investors, top-tier hires, and world-class mentors. The most successful founders craft messages that break through the noise and create opportunities. In this episode, Heidi shares the proven strategies she teaches at the Stanford Graduate School of Business to help you master the art of impactful outreach.  More information: https://...

If you're considering an earnout, you should know exactly what is involved to set expectations – and to give yourself the highest chance of it amounting to something. Heidi presents recent market data along with her firsthand experience to help you understand why earnouts are so challenging. More information: https://www.threshold.vc/podcast/the-case-of-the-elusive-earnout

Successful entrepreneurs seek out mentors to positively impact their careers. But how do they find a mentor, initiate contact, and build a relationship? As an experienced mentor and mentee, Heidi believes all these questions can be answered by following her tips on becoming a great mentee.   More Information: https://www.threshold.vc/podcast/how-to-be-a-great-mentee   Further Reading:  I mentioned...

All entrepreneurs should understand what venture debt is so they can make an informed decision to take it or not. Heidi poses a series of questions and scenarios to help founders know whether it's a good option for their company. And if it is, how to set it up and use it.  More Information: https://www.threshold.vc/podcast/the-case-of-the-venture-debt-dilemma Further Reading: As I mentioned in the...

Many entrepreneurs start companies to solve a big problem or apply innovative technology, or both.    But when they fail, it's typically the result of a business issue. Heidi has observed that founders usually run out of money because they didn't pay close enough attention to running the company. Here, she shares practical advice to help entrepreneurs become great at business.  More information: h...

 When the world is uncertain, it is especially challenging for an entrepreneur to steer their company forward. Heidi's six-word operating manual helps founders face the unknown and lead. Caution: Heidi's operating manual may sound simple, but executing it takes grit and leadership. More information : https://www.threshold.vc/podcast/six-word-operating-manual-for-entrepreneurs Further reading: No a...

Shareholder voting rights are an essential element of the many crucial decisions made in a company. For example, they may come into play during a fundraise or M&A. In this episode, Heidi explains what shareholder voting rights are so you can be well-informed and avoid messy situations in the future. For more information: https://threshold.vc/podcast/the-case-of-the-shareholder-shenanigans/ Further...

Over 20 years ago, Heidi Roizen became the subject of a Harvard Business School case that is still one of the most popular cases taught at business schools around the world today. This episode is a culmination of Heidi's best answers and actionable advice from two decades of being asked about the best ways to build one's network — or, as Heidi likes to put it, how to build a relationship-driven li...

In Season 3 Episode 8 of The Startup Solution, Heidi covered "How to Think About Venture Capital" and explained the VC business model. She now wants to dive into the topic of dilution - that is, how to think about the tradeoff between what you give up and what you get when it comes to your startup's equity.  For more information: https://www.threshold.vc/podcast/how-to-think-about-dilution

To determine if you should pursue VC dollars to fund your company, you first need to understand how the venture capital model works. Heidi covers the type of businesses and growth potential required for a VC to make an investment, along with the high risk involved in venture capital and an explanation of the power law. More Information: https://threshold.vc/podcast/how-to-think-about-venture-capit...

A person with a big online presence is calling out Athena for the seed investment she received from a big corporation that appears to be in opposition with Athena's company's mission. Heidi points out why founders need to know as much as they can about potential investors before they take their money to avoid being blindsided by an association that may lead to reputational fallout.  More Informati...

Rudy, a founder in fund-raising mode, received a verbal term sheet. A what? Heidi informs Rudy that there is no such thing as a verbal term sheet and flags all the other issues with the investor's offer. In this episode, Heidi resets Rudy's expectations of what is involved in the fund-raising process, including the time it will take to properly diligence investors.  More information: https://www.t...

Simone is a founder in a challenging situation. The only financing she can raise comes with a catch – she needs to do a recap. Heidi reviews how Simone landed in this position, what a recap entails, and the best path forward for the company and investors.  More information: https://www.threshold.vc/podcast/the-case-of-the-radical-recap Further Reading:  This is an excellent four-part series for en...

What do you do when you want to exercise your startup's stock options but need to borrow money to do so? Do you take an interest-free loan from your company? Heidi counsels her former student Aisha on why that may sound like a great offer, but the devil is in the details. It's likely that a loan could lead to painful financial consequences later. More Information: https://www.threshold.vc/podcast/...

Many founders, like Alyssa, worry that a 409a valuation is  considered   a true  market-based assessment of a company's overall worth or potential. It is not. Heidi points out factors that influence a 409a valuation  along with  what  is not reflected , namely, leadership, team quality, and disruptive potential.  More information: https://www.threshold.vc/podcast/the-case-of-the-409a-freak-out Fur...

An i ndependent director can play a crucial role in mitigating conflicts of interest among board members while also providing valuable input. Heidi explains what an independent director does and why it's important for a founder to include one on their board. More information:  https://www.threshold.vc/podcast/the-case-for-the-independent-director Further Reading: Every entrepreneur who raises capi...

Chester, an early-stage entrepreneur, wants to put terms in place so he can never be fired by his board. Like many founders, he saw what went down with Sam Altman at OpenAI and wants to know what he can do to avoid a similar situation from ever happening to him. Heidi explains why boards are set up the way they are and reassures him that a board and accountability are good for an entrepreneur and...

Some ambitious entrepreneurs embellish the truth to achieve their goals. Is this seemingly innocent practice appropriate, or is it a gateway to engaging in illegal activities down the road? Heidi shares why well-meaning people become frauds and the steps every founder can take to catch and prevent this behavior. More information: https://www.threshold.vc/podcast/the-case-of-the-fraudulent-founder

Miles wants to hire an advisor, a well-respected University of California professor but needs help defining the role, setting expectations, and formalizing the rules of engagement. Heidi, an experienced advisor herself, walks Miles through a step-by-step process to help him establish an advisor's obligations and compensation to ensure a mutually beneficial relationship.  More Information: https://...

The CTO needs to fire someone who is awful at their job but is the big brother of the CEO. Heidi recounts firsthand experience of navigating a complex commingling of family and startup dynamics to strengthen a healthy and productive company. More info: https://www.threshold.vc/podcast/the-case-of-the-nepo-nightmare

Secondary stock sales can be tricky. Heidi shares a financial drama where the founder is upset that her VC is selling, and the VC is upset that the founder is selling. Learn about the ins and outs of a process that can lead to happier, wealthier, and wiser stakeholders. More information: https://www.threshold.vc/podcast/the-case-of-the-secondary-showdown

Leon no longer wants to be the CEO of the company he founded. He makes his decision after completing an exercise Heidi suggested to him in Episode 5 – "The Case of the Frustrated Founder." In this segment, Heidi helps Leon take the steps needed to communicate his decision to the board, identify and onboard a new CEO, and transition into a new role and happier life.  More info: https://www.threshol...