<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:googleplay="http://www.google.com/schemas/play-podcasts/1.0"><channel><title><![CDATA[Manish Maryada]]></title><description><![CDATA[Hello! I am Manish, a startup + tech + movie buff! I was Founder of Fello which was backed by YC and other leading investors. I exited from the biz by selling it to another business! I am here to share my learnings and stories with the world!]]></description><link>https://www.maryadamanish.com</link><image><url>https://substackcdn.com/image/fetch/$s_!5dPO!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd58c53aa-b809-4f03-bd3b-32d3aa76e9f6_836x836.png</url><title>Manish Maryada</title><link>https://www.maryadamanish.com</link></image><generator>Substack</generator><lastBuildDate>Sat, 18 Apr 2026 09:42:21 GMT</lastBuildDate><atom:link href="https://www.maryadamanish.com/feed" rel="self" type="application/rss+xml"/><copyright><![CDATA[Maryada Manish]]></copyright><language><![CDATA[en]]></language><webMaster><![CDATA[hellomaryadamanish@substack.com]]></webMaster><itunes:owner><itunes:email><![CDATA[hellomaryadamanish@substack.com]]></itunes:email><itunes:name><![CDATA[Maryada Manish]]></itunes:name></itunes:owner><itunes:author><![CDATA[Maryada Manish]]></itunes:author><googleplay:owner><![CDATA[hellomaryadamanish@substack.com]]></googleplay:owner><googleplay:email><![CDATA[hellomaryadamanish@substack.com]]></googleplay:email><googleplay:author><![CDATA[Maryada Manish]]></googleplay:author><itunes:block><![CDATA[Yes]]></itunes:block><item><title><![CDATA[Hiring101 for early stage startups]]></title><description><![CDATA[Hiring is hard and I learned about it the hard way! Based on my conversations with other founders and my personal experience. Sharing some thoughts on how to hire!]]></description><link>https://www.maryadamanish.com/p/hiring101-for-early-stage-startups</link><guid isPermaLink="false">https://www.maryadamanish.com/p/hiring101-for-early-stage-startups</guid><dc:creator><![CDATA[Maryada Manish]]></dc:creator><pubDate>Thu, 26 Jun 2025 06:31:18 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!qvt2!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!qvt2!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!qvt2!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 424w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 848w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 1272w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!qvt2!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png" width="1024" height="1024" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1024,&quot;width&quot;:1024,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:1449211,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://www.maryadamanish.com/i/166872032?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!qvt2!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 424w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 848w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 1272w, https://substackcdn.com/image/fetch/$s_!qvt2!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F04eed292-8775-415d-9169-ce1fb67f9605_1024x1024.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>&#9989; When should you <strong><a href="https://www.linkedin.com/search/results/all/?keywords=%23hire&amp;origin=HASH_TAG_FROM_FEED">#hire</a></strong>?<br>1. When a work is taking up more than 40% of your daily bandwidth as a <strong><a href="https://www.linkedin.com/search/results/all/?keywords=%23founder&amp;origin=HASH_TAG_FROM_FEED">#founder</a></strong> and early team members<br>2. When a task cannot be automated by an AI agent (Welcome to the new world of hiring)<br>3. When a task that is needed in the hour doesn't fall within the expertise of the team and founders<br><br>&#127942;Whom should you hire? <br>1. Someone who can bring in Energy and Efficiency into the business<br>2. Someone who is ready to own things as much as founders are<br>3. Someone who is willing to put in extra hours and effort<br>4. Someone who is ready to lead during the founder's absence<br>5. Brownie points if someone worked in early-stage startups and knows the playbook.<br>6. Someone who has the potential to align with the mindset of the business and has the potential to contribute to the culture.<br><br>&#10060; Whom not to hire? (Founders should know this definitely)<br>1. A product manager, before hitting PMF. The founders need to be the product managers till PMF, blind rule!<br>2. A sales and marketing person, before the founders understand how to do it <br>3. Folks without experience. During early days, it's all about time and execution and you can't afford to lose time initially. <br>4. Market leaders who haven't worked in early-stage startups. The playbook is different. Example: A person who handles a big marketing budget at a series B+ level company and comes from a prominent tier 1 B-school but has never worked in an early-stage venture, won't be the right fit for you. <br><br>&#128078;&#127995;&#128293; When to fire? (This is extremely important)<br>1. Have a max of 2 months to see the potential of the individual. Trust me, you will get to know a lot in those two months. If they are killing it, proceed with them or otherwise, take the tough call.<br>2. When someone asks for frequent appraisals irrespective of the appraisal cycle, because they are strong at what they do. Fire such folks immediately. It tampers with the culture and others get inspired by such behaviours. <br>3. When there is less ROI from an individual. High salaries, less output is a complete no-no. <br>4. Saying no frequently to wartime situations in a business. During the early stage, everyone is important and if the team starts backing off during tough times, then its difficult to sail the ship.<br><br>&#127793; Things to keep in mind for founders:<br>1. Have structured appraisal cycles.<br>2. A part-time or full-time accounts officer should be your first hire<br>3. Balance the salaries of people who are getting paid well but outperforming<br>4. Set clear policies. Anything out of the policy should be a no.<br>5. <strong><a href="https://www.linkedin.com/search/results/all/?keywords=%23work&amp;origin=HASH_TAG_FROM_FEED">hashtag#Work</a></strong> on the retention of team members.<br>6. You will surely make wrong hires, don't hesitate to take the hard calls soon!<br>7. If you can't hire for a role, take others' help who are good at the job to hire<br>8. Eventually, get an <strong><a href="https://www.linkedin.com/search/results/all/?keywords=%23hr&amp;origin=HASH_TAG_FROM_FEED">hashtag#HR</a></strong> or founders' office person to help in hiring<br>9. Referrals are the best form of hiring. <br>10. Do the hiring yourself initially!<br><br>Cheers!</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Manish Maryada! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[10 Essential Things Every First-Time Fintech Founder Must Know]]></title><description><![CDATA[These are some of the learnings I learn't while building a fintech business and working in the financial sector! And hope this helps you!]]></description><link>https://www.maryadamanish.com/p/10-essential-things-every-first-time</link><guid isPermaLink="false">https://www.maryadamanish.com/p/10-essential-things-every-first-time</guid><dc:creator><![CDATA[Maryada Manish]]></dc:creator><pubDate>Tue, 18 Feb 2025 14:42:17 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!peFO!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!peFO!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!peFO!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!peFO!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!peFO!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!peFO!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!peFO!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp" width="1456" height="832" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:832,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;A modern, professional 2D cartoon-style illustration of a young bald man, around 28-29 years old, with glasses and a neatly trimmed beard only near the chin area. He is wearing a plain black T-shirt without any text. He is smiling confidently and pointing forward as if instructing others. The background features a sleek fintech-themed design with Indian banking elements, Rupee currency symbols, digital payment icons, and financial technology elements relevant to India. The bold text '10 Essential Things Every First-Time Fintech Founder Must Know' is displayed prominently. The typography should be modern and clear, ensuring the message stands out. The design should maintain a professional look with a premium color palette of blue, white, and gold. The character should be centered in the image.&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="A modern, professional 2D cartoon-style illustration of a young bald man, around 28-29 years old, with glasses and a neatly trimmed beard only near the chin area. He is wearing a plain black T-shirt without any text. He is smiling confidently and pointing forward as if instructing others. The background features a sleek fintech-themed design with Indian banking elements, Rupee currency symbols, digital payment icons, and financial technology elements relevant to India. The bold text '10 Essential Things Every First-Time Fintech Founder Must Know' is displayed prominently. The typography should be modern and clear, ensuring the message stands out. The design should maintain a professional look with a premium color palette of blue, white, and gold. The character should be centered in the image." title="A modern, professional 2D cartoon-style illustration of a young bald man, around 28-29 years old, with glasses and a neatly trimmed beard only near the chin area. He is wearing a plain black T-shirt without any text. He is smiling confidently and pointing forward as if instructing others. The background features a sleek fintech-themed design with Indian banking elements, Rupee currency symbols, digital payment icons, and financial technology elements relevant to India. The bold text '10 Essential Things Every First-Time Fintech Founder Must Know' is displayed prominently. The typography should be modern and clear, ensuring the message stands out. The design should maintain a professional look with a premium color palette of blue, white, and gold. The character should be centered in the image." srcset="https://substackcdn.com/image/fetch/$s_!peFO!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!peFO!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!peFO!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!peFO!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7649f8bd-2053-48cb-aa74-d3729934dcd5_1792x1024.webp 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>My entire life has been in the traditional finance and fintech ecosystem. My first job was at HSBC on the tech side. After that, I pursued my Master&#8217;s in Finance from Texas A&amp;M College Station. Then, I came back to India and started working at India&#8217;s first crypto exchange, Koinex, and later moved to FloBiz, a Neo-banking app for SMEs. After all this experience, I started Fello, a gamified savings and investing app for young millennials.</p><p>During this entire period from 2015-2025, the experiences and learnings have been massive. Fintech looks fancy on the outside, but there are a lot of things you need to know on the inside. If you are building a fintech business, you have to be very much ready for the challenges.</p><h3><strong>1. A Simple Regulatory Change Can Kill Your Business in Hours</strong></h3><p>Regulators like RBI and SEBI are here to protect the people. In the last few years, we have seen huge growth in tech and innovation, which also gave rise to frauds and businesses circumventing laws to offer services. RBI and SEBI have been imposing several regulations frequently.</p><p>I have lost count of the number of businesses that died within a week, scraping off months and years of effort over a single regulatory change. This is real! If you are planning on building a fintech business, you need to be malleable, prompt, and smart enough to adapt to regulatory changes.</p><p>A great example is <strong>Slice</strong>. When RBI imposed rules on lending via prepaid cards, many businesses were impacted. While everyone was figuring out their next move, Slice acquired a stake in a bank based out of Assam and continued running its business. This speaks volumes about the smartness of the founder and the team. Ask yourself&#8212;do you have that level of promptness and smartness?</p><p>Also, STAY AWAY FROM UNREGULATED AND GREY AREAS IN FINTECH!!! Write these words down and follow them promptly!</p><h3><strong>2. Networking is King in Fintech</strong></h3><p>Trying to get a banking relationship? Planning on applying through a bank&#8217;s startup portal? Then, my friend, you will never build a business. Those portals don&#8217;t work! Even if they do, the time taken for you to be heard by the decision-maker is painfully long.</p><p>You need to have a strong network and connections. Without banking or regulatory connects, building a fintech business is next to impossible. Your CEO or COO must be a solid networking person who knows people across banks and fintech domains.</p><h3><strong>3. If Your Business is Only Into Distribution of Savings/Investing Products, You Will Die Sooner or Later</strong></h3><p>Are you planning to start a savings app? Hoping to hit $100M ARR with it? Let me tell you the harsh reality&#8212;savings applications across mutual funds, digital gold, P2P, bonds, etc., offer commissions of just 0.05% to 2%.</p><p>Even at 2%, you need an <strong>AUM of $50M (&#8377;434 Crores) to make $1M ARR</strong>. For digital gold, you don&#8217;t even earn on AUM, but on transaction volume&#8212;just once! So, every year, you need to attract $50M just to hit $1M revenue. The solution? Either become the manufacturer of the products or launch complementary products to boost revenue.</p><p>A great example is <strong>Groww</strong>. They started with mutual funds and expanded into investments, credit, and more, eventually becoming profitable. </p><p>AIM TO BE A PRODUCT MANUFACTURER AND NOT A PRODUCT DISTRIBUTER. MONEY IS WITH THE MANUFACTURERS IN FINTECH. And I say it in bold because that&#8217;s been one of my biggest learnings.</p><h3><strong>4. In B2C Fintech, Distribution Channels Are Saturated</strong></h3><p>No one will tell you this, but I will. <strong>India has reached a saturation point in go-to-market channels for B2C fintech products.</strong> Every platform has tried everything&#8212;performance marketing, affiliates, influencers, channel partners, offline, partnerships&#8212;almost every GTM strategy under the roof.</p><p>Currently, even the best-performing channels push the platforms that pay the most. I might be wrong in the future with AI agents penetrating this space, but as of today, <strong>it is saturated</strong>. Content and organic traction are the biggest diversification you should focus on if you are entering B2C fintech.</p><h3><strong>5. The Performance Cost of Acquisition is Extremely High in B2C Fintech</strong></h3><p>Brace yourself. You are entering an industry where <strong>customer acquisition costs (CAC) are skyrocketing</strong> year by year. Google and Meta campaigns are in a bidding war, and during the festive season&#8212;the best time for B2C fintech apps&#8212;the numbers are mind-boggling.</p><p>You need exceptional ad creatives to lower costs. At Fello, we optimized CAC through numerous experiments&#8212;analyzing which face, background, word, and language performed the best. You need to reach this level of detail to win. I&#8217;d be glad to help fintech founders with this&#8212;feel free to reach out.</p><h3><strong>6. You Need Multiple Revenue Channels if You Are B2C</strong></h3><p>This one is in line with point #3. <strong>Read the end notes of point #3 again.</strong></p><h3><strong>7. Subscriptions Don&#8217;t Work in India for B2C, Except for a Few Niches</strong></h3><p>In the West, Neobanks like Nubank, Chime, and Cleo are minting millions of dollars in subscription revenue. But in India, people don&#8217;t pay for banking services. Most bank accounts are zero-balance, and most credit cards are lifetime free.</p><p>Subscription models work <strong>only for specific niches</strong>:</p><ul><li><p>HNIs pay for premium credit cards.</p></li><li><p>High-salaried individuals pay for financial advisory.</p></li><li><p>Traders pay for market data or trading suggestions.</p></li></ul><h3><strong>8. The Best Revenue generating business models Are in B2B and Certain B2C Niches</strong></h3><p>There&#8217;s a saying: <strong>&#8220;A second-time founder prefers B2B because they know the challenges of B2C.&#8221;</strong></p><p>Profitability, scaling revenues, and dealing with fewer consumer personas make B2B attractive. <strong>Razorpay</strong> is a perfect example. Even many B2C companies eventually pivot to B2B. Some P2P lending platforms, for example, started with a B2C approach but shifted to institutional lending.</p><p>In B2C, trading platforms, financial advisory for HNIs, tax support, and insurance have shown long-term revenue potential.</p><h3><strong>9. A Strong Compliance &amp; Legal Team is a Must</strong></h3><p>You will face legal cases. You will deal with the police&#8212;even when you&#8217;re not at fault. Your bank accounts may get frozen, and you will feel helpless. Even if you are fair, you can lose.</p><p>If you don&#8217;t have a <strong>solid compliance and legal team, don&#8217;t run a fintech company.</strong> You&#8217;ll waste time fighting legal battles instead of growing your business. If you are looking for a good compliance experts and consultants, I have met some good folks like <a href="https://www.linkedin.com/search/results/all/?fetchDeterministicClustersOnly=true&amp;heroEntityKey=urn:li:fsd_profile:ACoAAB41WaMBMxK_GZuNmPD4wJigyfDiyrcTWIA&amp;keywords=eashwari%20nair&amp;origin=RICH_QUERY_SUGGESTION&amp;position=0&amp;searchId=b3da45fd-ef93-4a67-b6dd-d1700ab57e2a&amp;sid=lr:&amp;spellCorrectionEnabled=false">Eashwari</a>, <a href="https://www.linkedin.com/in/sarath-thriveni-68018761/">Sarath</a> and <a href="https://www.linkedin.com/in/beejish-pillai-400abba/">Beejish (Groww)</a>.</p><h3><strong>10. Getting Licenses is Tough and Takes Time</strong></h3><p>If you think getting a fintech license is easy, <strong>you are in a bubble.</strong></p><p>Licenses require <strong>a strong network, reputation, and patience.</strong> Some licenses are near impossible without the right connections. <strong><a href="https://www.wintwealth.com/">Wint Wealth</a></strong> is a great example&#8212;they built credibility, delivered excellent services, and <strong>earned</strong> their licenses over time.</p><p>So these are some of the things about fintech business which you should know as a first time founder. I have so much more to share with you which I will share in future blogs. </p><div><hr></div><p>&#128640; <strong>If you&#8217;re a founder in fintech or an aspiring founder looking for guidance, feel free to reach out!</strong> I&#8217;d love to help.</p><p><strong><a href="https://www.linkedin.com/in/maryadamanishi/">LinkedIn</a> | <a href="https://x.com/maryadamanishi">Twitter</a> | Book a meeting slot <a href="http://cal.com/maryadamanish">here</a></strong></p><p>Keep building, Keep inspiring! Because you are the best! </p><p>If you found this post helpful, I&#8217;d love for you to <strong>share it</strong> and <strong>subscribe</strong> for more startup insights and real talk! &#128640;</p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/p/10-essential-things-every-first-time?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.maryadamanish.com/p/10-essential-things-every-first-time?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Manish Maryada! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p></p>]]></content:encoded></item><item><title><![CDATA[How to Value Your Startup During a Seed Round: A Founder’s Guide]]></title><description><![CDATA[This is especially written for first time founders! So if you are one, this might be helpful for you. P.S. Not giving fancy methods from the text books, giving you a realistic picture on how it works!]]></description><link>https://www.maryadamanish.com/p/how-to-value-your-startup-during</link><guid isPermaLink="false">https://www.maryadamanish.com/p/how-to-value-your-startup-during</guid><dc:creator><![CDATA[Maryada Manish]]></dc:creator><pubDate>Mon, 17 Feb 2025 14:42:48 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!odHm!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!odHm!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!odHm!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!odHm!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!odHm!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!odHm!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!odHm!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp" width="1456" height="832" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:832,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;A 2D flat illustration depicting a startup founder discussing valuation strategies with investors. The scene includes a whiteboard with graphs, charts, and funding indicators. The text 'How to Value Your Startup During a Seed Round' is prominently displayed in modern typography. The color scheme is vibrant with startup-themed elements such as light bulbs, rocket ships, and financial growth symbols.&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="A 2D flat illustration depicting a startup founder discussing valuation strategies with investors. The scene includes a whiteboard with graphs, charts, and funding indicators. The text 'How to Value Your Startup During a Seed Round' is prominently displayed in modern typography. The color scheme is vibrant with startup-themed elements such as light bulbs, rocket ships, and financial growth symbols." title="A 2D flat illustration depicting a startup founder discussing valuation strategies with investors. The scene includes a whiteboard with graphs, charts, and funding indicators. The text 'How to Value Your Startup During a Seed Round' is prominently displayed in modern typography. The color scheme is vibrant with startup-themed elements such as light bulbs, rocket ships, and financial growth symbols." srcset="https://substackcdn.com/image/fetch/$s_!odHm!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!odHm!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!odHm!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!odHm!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F017b9551-ac95-41b9-b3b4-f65192b1e1d7_1792x1024.webp 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>One of the most frequently asked questions by first-time founders is:<br><em><strong>&#8220;I am raising my seed round. How much should I ask for in valuation?&#8221;</strong></em></p><p>I faced the same challenge when I was raising my seed round. Back then, I valued my business at <strong>$4M pre-money</strong>, but when investors asked me how I arrived at that number, I gave some pretty ridiculous answers:</p><ul><li><p>I did a <strong>discounted cash flow</strong> of future "potential earnings" and based my valuation on that.</p></li><li><p>I used <strong>another business as a reference</strong> without considering key differences.</p></li><li><p>I justified it by saying, <strong>"We&#8217;re growing fast, so I feel it&#8217;s a fair ask."</strong></p></li></ul><p>Looking back, these answers crack me up! But you live and learn.</p><p>So, if you&#8217;re raising capital, let me explain how <strong>startup valuation actually works</strong> and how you can confidently justify your numbers.</p><div><hr></div><h3><strong>Pre-Money vs. Post-Money Valuation</strong></h3><p>Before we get into valuation strategies, you <strong>must</strong> understand the difference between <strong>pre-money</strong> and <strong>post-money</strong> valuation. If you don&#8217;t, investors might assume you lack a basic grasp of fundraising (I learned this the hard way!).</p><h4><strong>Pre-Money Valuation</strong></h4><p>Pre-money valuation refers to the value of the business <strong>before</strong> new investment comes in.</p><p><strong>Example:</strong> If an investor is putting in <strong>$1M</strong> and you are valuing your company at <strong>$6M post-money</strong>, then your <strong>pre-money valuation</strong> is <strong>$5M</strong>.</p><p><br><strong>Post-Money Valuation = Pre-Money Valuation + Investment Amount</strong><br>$5M + $1M = <strong>$6M post-money valuation</strong></p><p>If a VC is offering <strong>$1M at a $4M pre-money valuation</strong>, then their ownership percentage will be:</p><p><strong>VC&#8217;s Ownership = (Investment / Post-Money Valuation) &#215; 100</strong><br>(1M / 5M) &#215; 100 = <strong>20%</strong></p><h4><strong>Post-Money Valuation</strong></h4><p>Post-money valuation is the value of the business <strong>after</strong> investment is added.</p><p><strong>Example:</strong> If your business was worth <strong>$3M pre-money</strong> and a VC invests <strong>$1M</strong>, your <strong>post-money valuation</strong> is <strong>$4M</strong>.</p><p>If a VC offers <strong>$1M at a $4M post-money valuation</strong>, their ownership will be:</p><p><strong>Pre-Money Valuation = Post-Money Valuation - Investment</strong><br>$4M - $1M = <strong>$3M pre-money valuation</strong></p><p><strong>VC&#8217;s Ownership = (Investment / Post-Money Valuation) &#215; 100</strong><br>(1M / 4M) &#215; 100 = <strong>25%</strong></p><p>A small difference between <strong>pre-money</strong> and <strong>post-money</strong> can significantly impact your ownership. Be <strong>extremely mindful</strong> of the terms during negotiations.</p><div><hr></div><h3><strong>How Are Seed Rounds Valued?</strong></h3><p>You might think valuations follow complex mathematical models, but in reality, <strong>early-stage valuations are highly speculative</strong>. There is <strong>no set formula</strong>; instead, valuations depend on multiple factors, including market trends, investor interest, and competitive benchmarks.</p><p>Here are <strong>three primary methods</strong> used to justify startup valuations:</p><h4><strong>1. Benchmarking with Competitors</strong></h4><ul><li><p>Look at valuations of similar startups in your industry.</p></li><li><p>Most early-stage startups give out <strong>15%-25% equity</strong> in their first round.</p></li><li><p>If a startup raised <strong>$1M</strong> then it can be implied that they mostly raised for around $4M to $6M valuation which is 4x or 6x.</p></li><li><p>A common <strong>valuation multiple </strong>which I have seen for seed-stage startups is <strong>3x-5x</strong> of how much you want to raise within realistic probabilities. You can&#8217;t go and say I need $50M at $250M valuation without any product!</p></li></ul><h4><strong>2. Revenue Multiples</strong></h4><ul><li><p>If you have traction, your valuation power increases.</p></li><li><p>Example: If you have <strong>1,000 paying users at $500 per year</strong>, your revenue is <strong>$500K</strong>. You can ask for a multiple of your revenue.</p></li><li><p>If bootstrapped and achieved the numbers at a faster pace, then you can negotiate a <strong>higher multiple</strong>.</p></li><li><p>If pre-revenue, project conversion rates and revenue expectations to justify valuation.</p></li></ul><h4><strong>3. Internal Benchmarking by VCs</strong></h4><ul><li><p>VCs have internal benchmarks based on industry trends.</p></li><li><p>If a <strong>sector is hot (e.g., AI, Web3, Fintech),</strong> investors may offer <strong>higher valuations</strong>.</p></li><li><p>Example: Fintech startups might get <strong>$5M post-money</strong>, but an AI startup could push for <strong>$10M+</strong>.</p></li></ul><h4><strong>Other Factors That Improve Valuation</strong></h4><p>Think of valuation like <strong>a credit score</strong>&#8212;the stronger your profile, the better your terms:</p><ul><li><p><strong>Top Universities</strong>: Founders from elite institutions (Harvard, Stanford, IIT, IIM) often command better valuations.</p></li><li><p><strong>Experience in Early-Stage Startups</strong>: If you&#8217;ve been part of a fast-growing startup, investors know you have the expertise.</p></li><li><p><strong>Product &amp; Traction</strong>: Even without a pedigree, strong traction and revenue make you an attractive bet.</p></li></ul><div><hr></div><h2>How you should go about it??</h2><p>Valuing a startup is often seen as a complex process, but it doesn&#8217;t have to be. If you're trying to determine a fair valuation for your business, here&#8217;s a simple reference formula that keeps things reasonable while factoring in key variables like revenue, market opportunity, and founder pedigree.</p><h3><strong>The Basic Formula for Startup Valuation</strong></h3><p>If you have revenue (X), apply a multiplier of <strong>3x to 5x</strong> based on the size of the market and the opportunity:</p><ul><li><p><strong>3x</strong> if the market isn't highly exciting.</p></li><li><p><strong>5x</strong> if the market is highly attractive and scalable.</p></li></ul><p>If you don&#8217;t have revenue yet, but you have an expected revenue once monetization is turned on, use a <strong>2x to 3x multiplier</strong> instead.</p><h4><strong>Additional Multipliers to Consider</strong></h4><ol><li><p><strong>Rapid Growth &amp; Traction:</strong> If you&#8217;ve achieved revenue and metrics exceptionally fast, add <strong>another 2x</strong>.</p></li><li><p><strong>Strong Founding Team &amp; Experience:</strong> If you have prior startup experience or come from a strong professional background, add <strong>another 1x or 2x</strong>.</p></li></ol><h3><strong>Example Calculation</strong></h3><p>Let&#8217;s say you want to raise <strong>$1M</strong> and currently have <strong>$200K in recurring revenue</strong>:</p><ul><li><p>Base valuation: <strong>$200K * 5 = $1M</strong> (assuming an exciting market)</p></li><li><p>Rapid growth factor: <strong>$1M * 2 = $2M</strong></p></li><li><p>Strong founder background: <strong>$1M * 2 = $2M</strong></p></li></ul><p><strong>Final post-money valuation: $5M USD</strong> &#8211; a fair and reasonable ask.</p><div><hr></div><h3><strong>What If You Don&#8217;t Have a Product Yet?</strong></h3><p>For pre-revenue startups, valuation depends on:</p><ul><li><p><strong>Industry Benchmarks (X)</strong></p></li><li><p><strong>Market Size &amp; Revenue Potential (1x to 3x multiplier)</strong></p></li><li><p><strong>Founder Pedigree &amp; Background (apply discounts or additional multipliers based on experience)</strong></p></li><li><p><strong>Negotiation Skills</strong></p></li></ul><h3><strong>Example (This is a real one btw!):</strong></h3><p>Let&#8217;s consider an AI startup with a 2-year timeline for revenue. A similar company raised <strong>$1M at a $4M post-money valuation</strong>.</p><p>The founders:</p><ul><li><p>One had previously scaled an early-stage business for 8 years.</p></li><li><p>The co-founder was an AI expert who built a successful AI platform.</p></li></ul><p>Here&#8217;s how they structured their valuation:</p><ul><li><p><strong>Industry Benchmark Valuation:</strong> $4M</p></li><li><p><strong>Phenomenal Founders &amp; Experience (2x):</strong> $4M * 2 = $8M</p></li><li><p><strong>Strong Market Potential (3x):</strong> $8M * 3 = $12M</p></li></ul><p><strong>Final Valuation:</strong> $4M + $8M + $12M = <strong>$20M USD</strong></p><p>They successfully raised <strong>$5M at a $20M valuation&#8212;without a product.</strong></p><div><hr></div><h3><strong>Key Takeaways</strong></h3><ul><li><p>This formula is <strong>only for early-stage fundraising</strong>; future rounds depend on actual revenue, metrics, and market traction.</p></li><li><p>A startup&#8217;s valuation represents the potential value it can generate for shareholders.</p></li><li><p>A strong negotiator can push for better terms, regardless of these frameworks.</p></li></ul><p>By using this as a reference, you&#8217;ll have a solid foundation for structuring your valuation and making a compelling case to investors. </p><div><hr></div><h3><strong>Key Lessons from My Fundraising Journey</strong></h3><h4><strong>1. Don&#8217;t Over-Bargain for a Higher Valuation</strong></h4><ul><li><p>Take a <strong>reasonable deal</strong> and focus on growth.</p></li><li><p>I lost out on <strong>great investors</strong> early on because I was too focused on valuation.</p></li></ul><h4><strong>2. Investor Quality &gt; Valuation</strong></h4><ul><li><p>A <strong>strong investor</strong> at <strong>$10M valuation</strong> is better than a <strong>random investor</strong> at <strong>$15M</strong>.</p></li><li><p>Strategic investors <strong>add long-term value</strong> and open doors.</p></li></ul><h4><strong>3. Choose Investors Who Can Help You</strong></h4><ul><li><p>In the early days, find investors who can <strong>help with GTM, hiring, and intros</strong>.</p></li><li><p>Example: If your investor&#8217;s portfolio companies could become <strong>your customers</strong>, that&#8217;s a massive advantage.</p></li></ul><h4><strong>4. Be Mindful of Whom You Raise From</strong></h4><ul><li><p><strong>Not all money is good money.</strong></p></li><li><p>Research investors, <strong>talk to their portfolio founders</strong>, and check their reputation.</p></li><li><p>YC has an <strong>investor review database</strong>&#8212;DM me if you need insights.</p></li></ul><h3><strong>Final Thoughts: A Realistic Take on Seed Fundraising</strong></h3><p>If you're a first-time founder raising your <strong>seed round</strong>, I hope this guide gives you a <strong>realistic picture</strong> of how valuations work. In the end all I can say is <em><strong>&#8220;Don&#8217;t chase valuations, chase revenues! The valuations will follow!&#8221;</strong></em></p><div><hr></div><p>&#128640; <strong>If you&#8217;re a founder looking to raise seed round or an aspiring founder looking for guidance, feel free to reach out!</strong> I&#8217;d love to help.</p><p><strong><a href="https://www.linkedin.com/in/maryadamanishi/">LinkedIn</a> | <a href="https://x.com/maryadamanishi">Twitter</a> | Book a meeting slot <a href="http://cal.com/maryadamanish">here</a></strong></p><p>Keep building, Keep inspiring! Because you are the best!</p><p>And if you like my experiences and content and if you think that it will be helpful for other, feel free to spread the word by sharing it :)</p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/p/how-to-value-your-startup-during?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.maryadamanish.com/p/how-to-value-your-startup-during?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Manish Maryada! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p></p>]]></content:encoded></item><item><title><![CDATA[9 harsh truths I wish someone told me before starting up]]></title><description><![CDATA[And these are the 9 harsh truths that everyone who is aspiring to build a business should know!]]></description><link>https://www.maryadamanish.com/p/9-harsh-truths-i-wish-someone-told</link><guid isPermaLink="false">https://www.maryadamanish.com/p/9-harsh-truths-i-wish-someone-told</guid><dc:creator><![CDATA[Maryada Manish]]></dc:creator><pubDate>Mon, 17 Feb 2025 12:36:35 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!Kx1u!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!Kx1u!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!Kx1u!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!Kx1u!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp" width="1456" height="832" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:832,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;A digital illustration of a young bald startup founder sitting at a desk, looking stressed but determined. Around him, floating in the air, are 9 harsh truths about starting a business, displayed in a modern, minimalist font. The background is a startup office setting with a laptop, coffee cup, and scattered papers. The 9 truths should be visible and well-spaced, blending naturally into the composition.&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="A digital illustration of a young bald startup founder sitting at a desk, looking stressed but determined. Around him, floating in the air, are 9 harsh truths about starting a business, displayed in a modern, minimalist font. The background is a startup office setting with a laptop, coffee cup, and scattered papers. The 9 truths should be visible and well-spaced, blending naturally into the composition." title="A digital illustration of a young bald startup founder sitting at a desk, looking stressed but determined. Around him, floating in the air, are 9 harsh truths about starting a business, displayed in a modern, minimalist font. The background is a startup office setting with a laptop, coffee cup, and scattered papers. The 9 truths should be visible and well-spaced, blending naturally into the composition." srcset="https://substackcdn.com/image/fetch/$s_!Kx1u!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!Kx1u!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F97d23d2f-eadf-4be4-a3b7-6b9f5473dbd3_1792x1024.webp 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Since 2014, I aspired to build a business. I interned at a company called Zippr and was in awe of the founders solving real-world problems. Since then, I have always been close to the startup and entrepreneurial ecosystem. In 2020, when I left my job, I was all excited and geared up for the biggest stint of my career&#8212;building a business. I was influenced by the fancy news on social media, LinkedIn, and the startup buzz in the news. But little did I know about the harsh reality of being a founder. This is something no incubator tells you, and no social media post truly captures&#8212;except from a founder who has been through the journey.</p><p>Here are <strong>9 harsh truths I wish someone told me before starting up</strong>, and I will be as brutally honest and raw as possible based on my experience:</p><h3>1. It&#8217;s a Lonely Journey</h3><p>I&#8217;m hitting you with the hardest truth first&#8212;it&#8217;s a <strong>f*cking lonely journey</strong>. No one can fully understand what you&#8217;re going through. Your friends will listen, but they won&#8217;t truly get it. Your family? You can&#8217;t tell them everything because they&#8217;ll start worrying, adding extra pressure. Your partner? Constant work talk might strain your relationship.</p><p>At the end of the day, <strong>you&#8217;re in this alone</strong>. Be ready for the ride.</p><h3>2. Your Mental and Physical Health Will Take a Huge Toll</h3><p>As a founder, expect to work <strong>70+ hours a week</strong> (not mimicking Narayana Murthy sir, but it&#8217;s reality). After a long workday, you&#8217;ll struggle to sleep because your mind will be racing with business issues. At some point, you&#8217;ll experience <strong>anxiety attacks or panic attacks</strong>.</p><p>You&#8217;ll eat irregularly&#8212;sometimes just to survive. I once got a health checkup at the peak of my business journey and was <strong>shocked to see how messed up my vitals were</strong>. But through all of this, you have to <strong>keep a smile on your face</strong> because your team looks up to you.</p><p>Your health will be <strong>f*cked</strong> at least once&#8212;both mentally and physically.</p><h3>3. You Won&#8217;t Make Money for a Long Time</h3><p>Did you leave your <strong>$250K USD job or &#8377;50L INR job</strong> to start up? Get ready, because you <strong>won&#8217;t make a lot of money for a long time</strong>. In the early days, you&#8217;re surviving on your savings. Even if you raise VC money, <strong>you can&#8217;t just take a fat salary</strong>&#8212;your term sheets will have clauses restricting it.</p><p>Meanwhile, your peers will be buying homes, fancy cars, and vacationing in Europe. You? You&#8217;ll be <strong>building for a better future</strong>&#8212;and trust me, nothing beats that. But if you start drawing comparisons, you&#8217;re in for an emotional rollercoaster.</p><p><em>When will you start making money?</em> I&#8217;ve covered that in detail in another blog&#8212;<strong>check it out!</strong></p><h3>4. Your First Idea Might Fail</h3><p>Yes, <strong>your first idea will probably fail</strong>. You could have the best network, top-tier VC backing, and all the money to run the business. But if consumers don&#8217;t like your product, it&#8217;s game over.</p><p>Don&#8217;t be <strong>married to your idea</strong>. If you ignore the market and push forward blindly, you&#8217;re setting yourself up for disaster.</p><h3>5. VC Money: Boon and Bane</h3><p>Raising your first <strong>seed round</strong>? Congrats! But know this&#8212;you just <strong>invited someone new into your business</strong> to whom you&#8217;re answerable.</p><p>VCs help accelerate your business, but they also bring <strong>monthly reports, compliance, and investor updates</strong>. If you have a <strong>bad investor</strong>, your stress levels will skyrocket.</p><p>I met a founder in Hyderabad who had a terrible term sheet&#8212;his investor demanded <strong>money back if metrics weren&#8217;t met</strong>. A regulatory change killed his business, and now he&#8217;s <strong>stuck in a legal battle</strong>.</p><p><strong>Lesson:</strong> Choose investors wisely! I was fortunate to have some of the best&#8212;EF, Courtside, Upsparks, and Goodwater&#8212;who truly empathized with founders.</p><h3>6. 90% of Your Team Won&#8217;t Be Loyal</h3><p>Give them <strong>30-40% hikes</strong>, allow <strong>work-from-home</strong>, and provide <strong>all the perks</strong>&#8212;yet <strong>90% of your team won&#8217;t be loyal</strong>. I learned this the hard way.</p><p>But there&#8217;s a <strong>golden 10%</strong>&#8212;the team members who will <strong>give their life for the business</strong>. <strong>Never let them go!</strong> Stand by them in their tough times because they&#8217;ll stand by you in yours. Huge shoutout to <strong>Prakash, Bhargav, Anjali, Vamshi, and Akash</strong> for being those people for me!</p><h3>7. You Will Get Cheated in Business</h3><p>I thought <strong>business betrayal</strong> was just a Bollywood movie plot. It&#8217;s not. It happens in real life, too.</p><p>People will <strong>include deceitful clauses in contracts</strong>, siphon money from your business, or straight-up scam you. I had <strong>terrible experiences</strong> despite not being at fault. You will face this too&#8212;so <strong>be prepared</strong>.</p><h3>8. If You&#8217;re in Fintech, Get Ready for a Police Case</h3><p>Are you running a fintech startup that <strong>handles consumer money</strong> or processes payments? Then <strong>expect at least one police case</strong>. Even if a customer gets scammed for <strong>&#8377;100</strong>, you&#8217;ll spend <strong>lakhs in legal fees</strong> resolving it.</p><p>We faced this and were <strong>completely unprepared for the system&#8217;s harsh reality</strong>. You will, too. So, <strong>be ready!</strong></p><h3>9. Cofounder Relationship = Marriage</h3><p>Choosing a cofounder based on <strong>skills and abilities alone</strong> is a mistake. You need someone you can <strong>communicate with, solve conflicts with, and trust in tough times</strong>. And sometimes, even if you speak the same language of mind, the workstyle and thought process might differ. And in these, there is no always one person is right. Both could be wrong at times in each other&#8217;s view, its all about navigating it in the best way.</p><p>A <strong>strong cofounder relationship</strong> helps you <strong>weather the worst storms</strong>. A bad one? It&#8217;ll ruin not just your business, but also all the founders personal lives too. Also conflicts and varied decisions with your cofounder will keep the company directionless. </p><p>I&#8217;ve seen <strong>both sides of this</strong> in my ventures. So, <strong>don&#8217;t rush into choosing a cofounder</strong>&#8212;you&#8217;ll be spending <strong>at least 8 hours a day with them</strong>.</p><div><hr></div><h3>The Harsh Reality of Building a Startup</h3><p>All of this sounds <strong>intimidating</strong>, right? But guess what&#8212;<strong>this is the harsh reality of running a business.</strong></p><p>I love this quote by <strong>Elon Musk</strong>:</p><blockquote><p><strong>&#8220;Starting a company is like staring into the abyss and eating glass, and that goes on for a long time.&#8221;</strong></p><div id="youtube2-wVmGSMWkS9c" class="youtube-wrap" data-attrs="{&quot;videoId&quot;:&quot;wVmGSMWkS9c&quot;,&quot;startTime&quot;:null,&quot;endTime&quot;:null}" data-component-name="Youtube2ToDOM"><div class="youtube-inner"><iframe src="https://www.youtube-nocookie.com/embed/wVmGSMWkS9c?rel=0&amp;autoplay=0&amp;showinfo=0&amp;enablejsapi=0" frameborder="0" loading="lazy" gesture="media" allow="autoplay; fullscreen" allowautoplay="true" allowfullscreen="true" width="728" height="409"></iframe></div></div></blockquote><p>He&#8217;s spot on. Every day, you&#8217;ll be solving problems because the things that already have solutions? You&#8217;ve hired people to handle those.</p><p>But <strong>should these challenges stop you from starting up?</strong> <strong>Absolutely not!</strong> These are the realities of business, but they can all be solved. The key is to <strong>be prepared</strong> and <strong>tackle them head-on</strong>.</p><p>I&#8217;ll be writing another blog soon on <strong>how to navigate these 9 challenges</strong>, based on how I overcame them.</p><p>&#128640; <strong>If you&#8217;re a founder struggling with any of these issues or an aspiring founder looking for guidance, feel free to reach out!</strong> I&#8217;d love to help.</p><p><strong><a href="https://www.linkedin.com/in/maryadamanishi/">LinkedIn</a> | <a href="https://x.com/maryadamanishi">Twitter</a> | Book a meeting slot <a href="http://cal.com/maryadamanish">here</a></strong></p><p>Keep building, Keep inspiring! Because you are the best!</p><p>And if you like my experiences and content and if you think that it will be helpful for other, feel free to spread the word by sharing it :)</p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/p/9-harsh-truths-i-wish-someone-told?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.maryadamanish.com/p/9-harsh-truths-i-wish-someone-told?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.maryadamanish.com/subscribe?"><span>Subscribe now</span></a></p><p></p>]]></content:encoded></item><item><title><![CDATA[10 Mistakes to avoid as an early stage founder!!]]></title><description><![CDATA[These are the mistakes I did and I would advice the younger version of myself and budding founders to avoid while building a business!]]></description><link>https://www.maryadamanish.com/p/founder-learnings-post-1</link><guid isPermaLink="false">https://www.maryadamanish.com/p/founder-learnings-post-1</guid><dc:creator><![CDATA[Maryada Manish]]></dc:creator><pubDate>Fri, 14 Feb 2025 10:16:06 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!NHSW!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!NHSW!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!NHSW!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!NHSW!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp" width="1456" height="832" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:832,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;A bold and modern graphic design featuring the text '10 Mistakes to Avoid as an Early-Stage Founder' in large, eye-catching typography. The background includes startup-themed visuals like a confused entrepreneur, declining graphs, burning cash, and stressed team members, symbolizing common mistakes. The color scheme is professional with shades of blue and white, ensuring high readability. The design is in a 16:9 aspect ratio, making it ideal for presentations and social media.&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="A bold and modern graphic design featuring the text '10 Mistakes to Avoid as an Early-Stage Founder' in large, eye-catching typography. The background includes startup-themed visuals like a confused entrepreneur, declining graphs, burning cash, and stressed team members, symbolizing common mistakes. The color scheme is professional with shades of blue and white, ensuring high readability. The design is in a 16:9 aspect ratio, making it ideal for presentations and social media." title="A bold and modern graphic design featuring the text '10 Mistakes to Avoid as an Early-Stage Founder' in large, eye-catching typography. The background includes startup-themed visuals like a confused entrepreneur, declining graphs, burning cash, and stressed team members, symbolizing common mistakes. The color scheme is professional with shades of blue and white, ensuring high readability. The design is in a 16:9 aspect ratio, making it ideal for presentations and social media." srcset="https://substackcdn.com/image/fetch/$s_!NHSW!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 424w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 848w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 1272w, https://substackcdn.com/image/fetch/$s_!NHSW!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F199b12c2-dc4e-4e4b-bf1b-99a993cff131_1792x1024.webp 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>When I was 26-27, I started building Fello. I was one of the founding team members of an early-stage business, Koinex, which scaled phenomenally and taught me invaluable lessons! With that confidence, I decided to build my own venture. My experience at Koinex helped me a lot in my founder journey. But one of the harsh realities that hit me was: <strong>&#8220;Being a founding team member and being a founder are two completely different things.&#8221;</strong></p><p>While I was able to capitalize on my learnings, I also made mistakes that I only realized the hard way. If I were to build another business, these are the mistakes I would avoid for sure!</p><h3><strong>10 Mistakes I Made as an Early-Stage Founder (And Would Avoid in the Future)</strong></h3><p><em>(I will write in detail about each mistake shortly along with some real examples)</em></p><h4><strong>1. Don&#8217;t fall into the rabbit hole of &#8216;The Next Feature Will Make the Product Big</strong></h4><p>As a founder, you will fall in love with your product and might go into denial when things don&#8217;t work. You&#8217;ll always feel that the <strong>next feature update</strong> will make the product succeed. This is where you need a reality check.</p><p>Test all your ideas quickly. If you have 100 things you want to implement, do them fast. If the product still doesn&#8217;t work&#8212;stop, take a hard call, and pivot if needed.</p><h4><strong>2. Don&#8217;t hesitate to let go of inefficient people fast</strong></h4><p>One of my biggest mistakes (and a costly one) was not firing ineffective team members quickly. I tried to keep team morale high by giving chances, but it actually made things worse. Eventually, I had to fire fast, and for that, I was criticized for hiring fast and firing fast.</p><p>Later, I <strong>refined my hiring process</strong>, sought advice from founder friends, and made more strategic hires. <strong>Lesson:</strong> Take your time hiring, but if someone isn&#8217;t working out, <strong>let them go quickly.</strong></p><h4><strong>3. Don&#8217;t focus on multiple problems at once</strong></h4><p>As a founder, you&#8217;ll have <strong>a never-ending list</strong> of problems to solve. The reality is: <strong>You can&#8217;t solve them all at once!</strong> Trying to fix everything at the same time leads to split focus and delays solutions.</p><p>Once I started solving one problem at a time, execution became much more effective, and my anxiety levels dropped significantly.</p><h4><strong>4. Don&#8217;t obsess over competition</strong></h4><p>Everyone around you&#8212;team, investors, advisors&#8212;will talk about competitors. You&#8217;ll see them raising funds, and acquiring users, and it can feel overwhelming.</p><p>But <strong>your real focus should be on your customers</strong> and getting <strong>Product-Market Fit (PMF)</strong>. The market is big enough for multiple winners. I wasted a lot of time worrying about competitors. If I were to do it again, I&#8217;d <strong>stay aware but not obsessed.</strong></p><h4><strong>5. Don&#8217;t rush senior hires due to time pressure</strong></h4><p>Your senior leaders <strong>carry the business</strong> in your absence. Hiring them under a time crunch is dangerous.</p><p>I made hurried hiring decisions for senior roles and skipped thorough <strong>background checks</strong> just because someone nailed the interview. Later, this cost us heavily in time and operations.</p><p>Take time to <strong>hire experienced leaders</strong> with whom you have great personal rapport. As my investor, Charlie Songhurst, said: <em>&#8220;The people you hire in peacetime are better than the people you hire in wartime.&#8221;</em></p><h4><strong>6. Don&#8217;t spend on marketing before achieving PMF</strong></h4><p>A classic startup mistake. <strong>Spending money on marketing without PMF is like burning cash.</strong></p><p>Yes, you can grow numbers by spending money, but it won&#8217;t be sustainable. <strong>Scaling before PMF is a dangerous game.</strong> Post-PMF, marketing spends are an investment; pre-PMF, they are just an expense.</p><h4><strong>7. Don&#8217;t focus on vanity metrics like DAUs/MAUs&#8212;Retention &amp; Revenue are king!</strong></h4><p>It&#8217;s easy to get excited about Daily Active Users (DAUs) and Monthly Active Users (MAUs). But <strong>if you have 1M users with no revenue and an 80% churn rate, what&#8217;s the point?</strong></p><p>Initially, I focused too much on DAUs/MAUs until my advisors pushed me to focus on <strong>revenue and retention.</strong> Hard decisions followed, but they paid off.</p><h4><strong>8. Don&#8217;t hesitate to share problems with VCs and advisors</strong></h4><p>Your <strong>VCs and advisors have seen it all</strong>&#8212;as operators or investors. Any problem you face, they&#8217;ve likely dealt with before. <strong>Use them!</strong></p><p>At first, I hesitated to share challenges&#8212;from co-founder conflicts to operational crises. Once I started opening up, they stepped in with <strong>actionable solutions and key connections.</strong> I wish someone had told me this earlier!</p><h4><strong>9. Don&#8217;t have too many investors on your cap table</strong></h4><p>More investors = More responsibilities = More complexity = <strong>More wasted time.</strong></p><p>If you take small checks from too many investors, it creates an <strong>operational nightmare</strong>&#8212;tracking signatures, compliance, and approvals. I <strong>wasted too much time</strong> managing investor relations.</p><p>Use <strong>Roll-Up Vehicles (RUVs)</strong> for small-ticket angel investors and keep the <strong>cap table simple.</strong> Also, a <strong>cap table management tool</strong> is a game changer.</p><h4><strong>10. Don&#8217;t think you know everything&#8212;Accept that you don&#8217;t!</strong></h4><p>You grow when you <strong>accept your limitations.</strong> If a task takes more than 40% of your bandwidth, <strong>hire for it and delegate.</strong></p><p>For the first year, I tried doing too much myself. <strong>Big mistake.</strong> Time is your biggest asset&#8212;spend it wisely.</p><div><hr></div><h3><strong>Final Thoughts: Mistakes Make You, But Learning from Them Defines You</strong></h3><p>I have more operational mistakes to share in another post. But these <strong>10 mistakes</strong> are ones <strong>every early-stage founder</strong> should avoid for the long-term health of their business.</p><p>If you&#8217;re an early-stage founder (or aspiring to be one) and are struggling with any of the above challenges, I&#8217;d be happy to connect and help. Feel free to reach out on <strong>LinkedIn, Twitter, or email.</strong> You can also <strong>book a call</strong> with me.</p><p>Also, if you found this post valuable, consider <strong>sharing it</strong> with other founders and subscribing to my newsletter. More startup insights and lessons coming soon!</p><p><strong>Cheers &amp; Happy Building! &#128640;</strong></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.maryadamanish.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Manish Maryada! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p></p>]]></content:encoded></item></channel></rss>