Challenging VC Rules of Thumb

Do you ever feel like the startup world is stuck on repeat? Perhaps you're a non technical founder stuck in the chicken and egg situation of trying to build a product with no money or trying to raise a round with no product.

Technical founders make the best founders

In 2013 90% of unicorn CEOs had a technical degree but in 2023 40% of unicorn founders were non-technical. What we look for at Paloma is deep domain expertise. The real differentiator is in how well you know your industry, customer and market.

The Australian VC scene is too risk adverse

There are a subset of early stage investors in Australia and New Zealand. Paloma being one of them; we deliberately look for pre-product, pre-revenue businesses. The reality is that Australian VCs have to be a little more conservative; if they don't get the returns in their first few funds then they might not attract LPs to subsequent funds.

A venture should be a founder's life mission

The old age demand that you should focus blindly on your startup is pretty outdated. If we really want to surface great founders, we need to be realistic about what it takes—not just in grit but also in finances, mental health and other life commitments. Should you be slightly obsessed with your venture? Yes. Should you be penalised for having a family? No.

Your venture needs to be global from day one

Australia's population is 26m, compared to 333m in the USA. It's likely you'll be looking to expand globally at some point. Does it have to be day 1? Probably not. Keep your eye on the global prize and learn some hard lessons from your experience in Aus.