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Pitching VCs when you do not need capital yields better terms

Gil Allouche · How I hit $15m ARR using 4 new growth playbooks · May 14, 2024 · at 3:29

This episode carries Gil Allouche's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.

Gil Allouche, founder of B2B marketing platform Metadata, explains the leverage shift founders experience when pitching investors from a position of financial self-sufficiency rather than desperation.

0:00 / 0:16exact quote · 16.7s
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“When you don't need the money, when you go to an investor and you tell them, this is happening anyway, you are invited to join us for this journey, the conversation is very, very different. You talk to different people, much kinder people, and you get term sheets that you're proud of, not something that you're ashamed to go to your board with.”

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More from Gil Allouche

Disclosure
Allouche tanked his credit score to 250 to fund Metadata
“I maxed out all of my credit cards. American Express would call me daily. I would pick up my phone and tell them I'm not paying you anything. When I have money, I'm paying you all of it. Right now, you can keep calling me. Not paying you any of that. And third…”
Gil Allouche May 1, 2023 ▶ 6:15 How to recession-proof your SaaS: 3 keys to surviving just about any economic downturn
Assertion Not checkable as stated
Allouche defaulted on Amex to preserve runway, dropping credit to 500
“American Express. Not essential. Got a phone call every day. Sir, are you gonna pay your debt? No. I'm not gonna pay a dollar of my debt. My credit score went down to 500.”
Gil Allouche Nov 5, 2022 ▶ 5:55 How Metadata grew 700% to $15m in Revenue in 24 months while switching from high burn to profitable
Opinion
Allouche: Raising capital on convertible notes is super easy even in downturns
“It's super, super easy, especially when the market is hot, but even when it's not, super easy to raise on convertible note.”
Gil Allouche May 1, 2023 ▶ 18:44 How to recession-proof your SaaS: 3 keys to surviving just about any economic downturn
Assertion Not checkable as stated
Metadata account executives converted commissions to equity, saving $1M cash
“All the AEs who are very cash, you know, kind of cash operated, They converted 50 to a hundred percent of their commissions into options, into common options. That got, got them a lot more invested in the business, and got us about a million dollar cash back i…”
Gil Allouche Nov 5, 2022 ▶ 5:15 How Metadata grew 700% to $15m in Revenue in 24 months while switching from high burn to profitable
Disclosure
Allouche rejected a $4M term sheet that wiped out early investors
“I got a term sheet, a four million dollar term sheet from a green entrepreneur, a shark, who saw that we're struggling. That term sheet, if I took it, My company wouldn't be around anymore. That, that would convert all of the preferred to common. It wouldn't m…”
Gil Allouche Nov 5, 2022 ▶ 6:33 How Metadata grew 700% to $15m in Revenue in 24 months while switching from high burn to profitable
Assertion Not checkable as stated
Metadata Raised $3M Series A Extension at 2x Valuation Post-Cuts
“And after that, we went back to our Series A investors to tell them about the cuts, and they said, fuck, that's amazing. Here is three million dollar more because you guys are so efficient. So we raised another three million dollar in, in, by the way, twice ev…”
Gil Allouche Nov 5, 2022 ▶ 15:43 How Metadata grew 700% to $15m in Revenue in 24 months while switching from high burn to profitable
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