68. A Deep Dive Into the Mindset of a B2B Venture Capital General Partner: Who Gets the Money and Why with Tim McLoughlin

Summary

When it comes to startups looking to grow, funding is a crucial part of their journey. But deciding which startup or founder to invest in is a question not easily answered. Venture capital firms are faced with throngs of companies vying for their attention. What are the parameters they look into? What sort of metrics do they want? In my first interview with a venture capital firm, Tim McLoughlin from Cofounders Capital shares with us what they look for in the early-stage B2B startups they invest in. We also discuss insights on why he thinks startups fail. Tune in to this episode to find out the perspective of a VC fund on who to give their money to!   Resource Links: Brett Trainor Website (https://bretttrainor.com/) “3 Stages of Startup Growth and How To Breakthrough” (https://bretttrainor.com/resources/) Cofounders Capital Website (http://cofounderscapital.com/)   We’ll be talking about: Tim’s roots in North Carolina and getting involved in startups there [01:13] ‘The Triangle’ as fertile ground for startups [03:33] The attraction of B2B software companies [04:15] The decision criteria for which early-stage B2B startup to choose [05:49] Founders shouldn’t getting stuck on a idea they had going in [09:15] Being an entrepreneur involves a flurry of activity [10:42] Their preference for first-time founders [11:40] Two actionable traits that separate good from bad companies [14:10] Knowing when to segment your model and KPIs is important [17:18] Going broad vs. taking one niche at a time [19:35] Always prepare for the hand off to the next person [21:15] Focus and know your onboarding process [23:41] What happens following the success of a startup [25:13] The changes in the startup world influenced by COVID-19 [26:55] What’s next for Tim and Cofounders Capital [29:25] The one thing that Tim recommends [30:44]   About Our Guest: As a Partner at Cofounders Capital, Tim McLoughlin is very involved in the North Carolina startup ecosystem. He has served as adviser and board member to several early-stage software companies. Prior to joining CoFounders Capital, Tim was an Entrepreneur in Residence for the Idea Fund Partners. You can reach out to Tim through Cofounders Capital or his LinkedIn.   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast.    Connect with B2B Founder:  Subscribe on Youtube: https://www.youtube.com/channel/UCySoKsETeKxu-Fnf2VfE7Gg/