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- Interview Questions to Quickly Gauge Candidates, Raising A Seed Round in 2024 - Tactician #0068
Interview Questions to Quickly Gauge Candidates, Raising A Seed Round in 2024 - Tactician #0068
"So my interviewer asked me, 'If you were a brand, what would you be?' And I’m like, 'Desperate™. The brand that’s eager to please. Now available in the unemployed flavor. Side effects may include excessive nodding and forced enthusiasm.'"
29/02/2024
Interview Questions to Quickly Gauge Candidates
Why Read (2-4 minutes):
Mastering the skill of asking impactful interview questions is crucial in today’s competitive hiring landscape. This article equips you with a set of thoughtfully crafted questions to better assess a candidate's potential for growth, resilience, and their capability to contribute meaningfully to your team's success.
Author:
Tim De Chant, Senior Reporter at TechCrunch and Founder at Future Proof
Link:
Key Concepts and Tactics:
The Importance of High-Impact Interview Questions:
"In most hiring processes, you’re lucky if you get 45 minutes to chat with a candidate...How do you use that precious time to get the most—and most important—information?”
Questions to Understand Handling of Challenges:
"Talk me through your biggest product flop. What happened and what did you do about it? I look for people being brutally honest about how bad it was and why it failed. The rest of the interview, they’re trying to tell you all the wonderful things they did and all the accomplishments they had. And so I think the rawer the answer in terms of how bad it was and why, the better." —Annie Pearl
"What’s the hardest thing you’ve ever done? I want to understand what hard means for them. I want to understand why it was hard. I want to understand how they overcame that difficulty, how they worked with other people to overcome that difficulty, and how much agency they had in overcoming that." —Geoff Charles
Understanding Candidates' Learning and Adaptation:
"What is the worst product that you’ve ever shipped? It tells me you have some humor, you’re humble, and you can point out when you’ve made a mistake. You’ve done enough to be able to confidently say, of course I’ve made a mistake. Because none of us are perfect. And you know how to spot those mistakes and you can learn from them." —Maggie Crowley
"Tell me about a time when you needed to disagree with your manager or fight for a position against higher leadership. You want to look for people who have backbone but can also disagree and commit. That’s what I’m normally looking for. It showcases a lot about your character and if you are willing to stand your ground and push up when you need to. What is that influential communication skill that you have?" —Inbal Shani
Raising A Seed Round in 2024
Why Read (5-8 minutes):
Explore the changing dynamics of seed funding, including what investors now expect from startups, the impact of market conditions on valuations, and practical advice for founders looking to raise capital. Insights from experienced investors shed light on the current investment climate and strategic approaches to securing funding.
Author:
Tim De Chant, Senior Reporter at TechCrunch and Founder at Future Proof
Link:
Key Concepts and Tactics:
Evolving Definition and Expectations for Seed-Stage Startups
Investor Insight: "The definition of a seed-stage startup has been evolving over the years as round sizes and valuations creep higher."
Market Dynamics: “Investors are expecting to see a bit more from prospective companies, in terms of market fit and revenue...The pandemic is partly to blame...There was a lot of capital in the COVID era that came in."
Increased Scrutiny: “The bar is higher now...Investors are starting to ask diligence questions that in 2021 would have been Series A kind of questions.”
Milestones for Seed Funding
Revenue Expectations: “I’m advising our portfolio companies that $300,000 to $1 million in ARR is strong to go raise a seed round...Three years ago, the high end of that was enough to raise a solid Series A.”
Proof of Concept: “While revenue is not required for deep tech startups, ‘substantive traction on the business side’ is...Investors also want to see a strong proof of concept along with a strong timeline to get to a pilot-scale demonstration.”
Seed Round Size and Valuations
Current Statistics: “In December and January, median deal sizes were $2 million...with most falling between about $800,000 and $4 million. The median pre-money valuation was $10 million, and the majority spanned $5 million to $20 million.”
Market Adjustments: “Those valuations might be a holdover from previous years...She’s been seeing a lot of bridge rounds where the valuations aren’t updated.”
Market Conditions and Outlook
Investor Optimism: “Though valuations might be inflated, investors remain generally optimistic about this year’s outlook. AI is a driving force...‘It’s no longer just buzz. There’s a lot of substance,’ Goldberg said.”
Investment Strategy: “No matter what the market looks like, though, investors are always looking for new portfolio companies...‘We have to make investments both in good markets and in bad markets,’ Goldberg said.”
Tactical Advice for Founders
Comprehensive Preparation: “In 2021, you could raise off of one part of your story being really incredible...Now it feels like you need an amazing founding team and a compelling business idea and a good market and a little bit of customer traction.”
Strategic Fundraising: “‘Time it around an inflection point,’ Bannon said. Founders should start laying the groundwork well in advance...when revenue or customer growth starts taking hold, they’re ready to pitch.”
Understanding the Audience: “It’s important that founders know the differences between angels, seed funds, and larger venture firms...The best pitches...are those where the founders clearly show why they’re the best people to bring a product to life.”
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