AgentTechnology

Founding a startup? Don’t make these 7 mistakes

Focus on your investors in addition to your valuation, and execute caution with hiring

SAN FRANCISCO -- Building a company from scratch is a Herculean task that requires navigating innumerable hazards. Here are seven of the biggest mistakes that startups make, according to a panel at Inman Connect. 1. Choosing bad investors Startups often focus too much on nabbing the highest possible valuation rather than the quality of their investors, panelists said. John Helm "If you get the wrong investor in your company, it can just make things twice as hard," said angel investor John Helm, who has founded two real estate tech companies in the past. Do your due diligence and talk to other CEOs to find out how a prospective investor treats startups when they miss their goals or make mistakes, he said. If the investor is a large firm, make sure you get to know the representative who will actually sit on your board, he added. 2. Running out of money Rich Boyle, a general partner at Canaan Partners, said a commercial real estate tech company he founded, LoopNet, was...