Hey Reader,
Despite the predatory fundraising p*rn on your insta feed claiming you’re funding ready & they can help. You likely aren’t, can’t & won’t. So, let’s pivot to what actually matters. What now? (đť•Ź)
Money has changed in 2024. You need fame, traction, or a bit of both. The occasional startup raises millions with neither. But that’s lightning striking twice or a rich uncle that loves you.
TL;DR The only early-stage metric that matters is PROOF. Can you show that you can create something people want and will pay for? (Workbook)
LAST WEEKS FRAMEWORK:
4.6 StartUp SaaS Pricing: Low End Of Normal (Join Convo)
LETS GET INTO IT:
Funded or not, the goal is the same. Build a business more likely to succeed than fail.
The only true currency is evidence, something we all lack in the early days. Real proof doesn’t have to be massive. It’s about anything, even the tiniest signal, that adds a grain of credibility to your vision.
A single passionate user, an industry expert’s approval, a scrappy prototype that shows technical feasibility. It’s not about scale; it’s about that first flicker of validation that makes you think this might actually work.
Proof is what attracts talent, keeps you sane, secures partners, and wins early adopters. Even if it’s just a spark, if it’s the right spark in the right context, it ignites everything.
Evidence isn’t the pre-requisite to funding; it is the funding. No founder bias, no explanations – just fact.
Building proof is every interaction with a customer, every tweak to the product, every partnership, every anything should add to the credibility you’re building. It’s this consistent, iterative effort that turns small wins into real evidence.
Early days, this proof comes in two flavors: Traction and Fame.
Traction is the core. It might be early users who rave about your product. It might be revenue, a pre-launch list, successful outcomes, the tech working, anything showing demand or impact of the solution.
Fame is the spark. It’s influence, but functional. You’re a domain expert, have deep experience with the problem, prior success, a notable name, or work at a relevant company. It’s founder-market fit.
Establishing your reputation as a credible expert in your domain can be just as powerful as traction.
Pre/Seed/Angel… You don’t need both. But you sure need one.
Your job is to build that evidence. Every. Single. Day.
​Traction X Fame > Where Are You On the Curve?​
What Now?
Every single day… “What can I do today to prove we’re real?” Do it. Then do it again tomorrow.
Investors bet on evidence, and you and your employees are likely your largest investors… so prove it to yourself.
It’s normal to feel like you’re in the 0 phase (the wilderness), traction and fame seem elusive. Every successful founder started at zero and has navigated this phase. Persistence to find a spark that ignites everything.
So stop chasing and start building something so undeniably awesome that they’ll be knocking down your door.
Stay hungry, stay foolish, but above all, every day, one more step towards PROOF.
As always, if I can be of service, feel free to grab time.
— James
​