16 Comments
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John Brewton's avatar

Preparation is the quiet advantage most founders skip.

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Chris Tottman's avatar

Interestingly the prep in data rooms are mostly terrible.. we're in the process of building a few for founders ie like a product for subscribers. Roll in 2026

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Dennis Berry's avatar

Great list. Bypassing market validation is, IMHO, by far the biggest mistake. Building products and services for a problem that doesn't exist is a killer.

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Chris Tottman's avatar

Hallelujah! Ain't that the truth - mind blowing 🤯

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Sam Illingworth's avatar

Thanks Chris, this is such great advice, and it seems crazy to me that people would not be doing most of these things as the bare minimum. Thank you for the playbook at the end as well, a very helpful checklist! 🙏

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Chris Tottman's avatar

My pleasure. The challenge for founders is there is so much to do that's totally uncertain combined with fierce constraints - time, money, resources

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Cris Cafiero's avatar

Which one would you say is the most common?

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Chris Tottman's avatar

Most people are building something for a problem that no one cares enough about - plain and simple. It's worse when the founders cares about the idea 100x more than the person they're trying to sell it to. The trick is just reverse that statement - find something someone cares about 100x more than anything else. Something they're banging the table to get fixed

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Bob DePasquale's avatar

They say the numbers don't lie but I think there's a lot of feel involved in these transactions too.

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Chris Tottman's avatar

Feel, hope, greed, anxiety, fear, anticipation etc etc

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Laura Ferraz Baick's avatar

I've seen too many founders pitch the hockey stick without being able to defend the first inflection point. Sending your article to my CEO.

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Chris Tottman's avatar

So so true. Simple milestones. Critical path. Operate in sprints.

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Nazanin Bigdeli's avatar

Founders who prepare for due diligence before they need it raise faster, negotiate better, and stay in control.

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Chris Tottman's avatar

"no surprises" - one trick is to get a friendly to devils advocate and war game everything before you go out at all - "Forewarned or is forearmed"

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Neural Foundry's avatar

Great breakdown on preparedness over polish. The cap table point is especially underrated since i've seen multiple deals stall just because founders didn't secure propr IP assignments from early contractors. Its wild how something so fixable at the start becomes an existential risk later. Would add that getting audit-ready documentation before starting outreach saves way more time than most founders realise.

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Chris Tottman's avatar

Wise words! Thanks for sharing ✅

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