Intro to the SF Startup CommunityWith Ahmed Siddiqui

Illustrations by Jeremy SypniewskiWant to get in touch? I’m on Twitter @ mrrioki. Or email howdy@magicspoon.net.

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Hi. I’m AhmedSiddiqui.

When my Uncle said: There’s a saying...

I imagined things going like this: I even had a plan:

Dreaming about startups...I was living in Minnesota, working at IBM.

If you love startups,you HAVE to move to San Francisco.

Welcometo SFO.

I’m going to build anapp to teach my two year old cousin English!

INTRO

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So I ate some Ramen and got to work.

But our customers weren’t using it to learn English.

We shouldbe this.

But I survived.

Any questions?

Can you tell us how weget involvedin the startup community? I’d actually love to.

Huge fan bythe way!

Sure.COOL!!!

We shouldbe that.

We shouldpivot.

We shoulditerate.

We shouldeat Ramen!

We realized that eitherway the market wasn’tbig enough.

Eating Ramen.

We kept building, and building. But the product still

wasn’t that great.

And eventually wecame to the co-founder disagreement phase.

They wereusing it as a healthy eating app.

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1. MEETUPS

2. HACKATHONS

Tech meetup. Another tech meetup.

Tech.

Tech.

Initially, I went to all the tech meetups and kept meeting the same people.

Everywhere you go herepeople are into startupsand tech.

Are you really interestedin doing a startup?

Hackathonscan help youfind out.

But they alsolike to cook...

Variety; pretty inexpensive; in the evenings.

Business card stack will be HUGE; very social—not action oriented.

It’s a circuit.

Tech.

Cooking meeetup.

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They’re about working with people, getting stuff built, and getting it out there.

Action based—all about doing. No business plans. You might find a co-founder (look for people that can complement you). Also, prizes.

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Ask for guidance and advice.

Learn as much aspossible.

Build relationships.

Whatever you build, you’ll probably scrap. It’s ok; it will give you an idea. There is a time commitment, but you can find out a lot about yourself.

3. MENTORS

WE DID IT!!!

This is important.

YOU NEEDA MENTOR.

WhatshouldI do?

The schedule looks like this...

WhatshouldI avoid?

I can help you.I’ve done it.

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You choose them; the relationships you build could lead to funding; you’ll always learn something.

You choose them; they could take you down the wrong path. (Though this is rare).

Where do you find a mentor?

They’reallover.

But they’reout there.

Should you give them equity?

This is the rage of late.

They get vested with you.

It’s also a way of retaining the mentor.

Yes.

Unfortunately, there’s no badge that says "I’m a mentor."

Sometimes they speak at conferences.They tend to drink coffee.

4. INCUBATORS/ACCELERATORS

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A lot of mentors hang out at incubators.

Also, classes can be springboards...

What happens at the incubator?

5 XGREATER

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You’ll work on your startup for three months.

You’ll get some funding to stay afloat.

They’ll provide networking and dinners so you gain exposure.

Seed funding; some free legal services (usually cost about $700–900/hour); a large peer network.

Structured learning; usually in the evening; great networking; can act as a springboard.

Hard to get into. You have to pick one. They’ll take a percentage of your company, but for the value of services they provide it’s worth it.

Some can be very expensive. Sometimes it’s a large time commitment.

Take someclasses.

It’s good to learn some of the stuff yourself...

it will help you have conversations with developers.

5. CLASSES &TALKS

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6. COWORKING

7. ANGELS

And I was skepticalat first, but I found out it’s all about the network.

This is kind of a big thing.

It’s lonely working on your startup, by yourself, in your house.

Typically they invest:

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Coworking spaces are great for:

Meeting amazing people.

Sharing ideas.

Getting work done.

They’ll help get the business off the ground.

Work with other startups; build a network; free events; good exposure.

YOU WANT THEM.

Pricey; some places (like Rocket Space)require seed funding.

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Find a reputable angel.

Somebody that has a vested interest in your domain.

When you’re at a point to raise VC money, take a look at their portfolios...

But there’s just not enough VC money to support all the startups.

The bottom line is don’t just go to angels and VCs for their money.

It’s worth more thanthe cash money.

Go for their knowledge.

find places that are similar or complementary.

Incubators

Angels

Big money

They do convertible notes. They’re great advisors. They will help you raise more money because they are invested in the business; well connected.

Smaller increments of funding. A lot of angels aren’t that seasoned—be careful whom you choose.

8. VCs

Typically they invest:

When you get to the big rounds the money isn’t there.

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Funding typically above 1 million; great advice; they’ll take a bigger chunk, but will help with later rounds.

They take a big chunk—means more accountability, you have to make your numbers, there’s a board, and your valuation could go down if you miss.

9. EPILOGUE

Awesome. Let’swrap this up.

Get ready for the ride of your life.

Some advice...

Don’t be shy. I’m on Twitter @ mrrioki.Or email howdy@magicspoon.net.

THANKS FOR READING!