VCs need to believe that your company could be a billion-dollar business and generally lack imagination — you need to paint a vivid picture of this path for them, starting with the striking protagonist character you play in your company’s story.Your alter ego should never lie, but it should be completely comfortable showing the fullest expression of your ambition to people who probably intimidate you. Fundraising is a snap judgment game — most VCs are trying to pattern-match you to a founder archetype who already won. They index primarily on IQ, self-belief, experience, and personability (in that order). A general rule of thumb is that to be taken seriously in SV, male founders would benefit from acting warmer, while female founders are taken more seriously when they act colder. Both benefit from acting a little entitled.

a VC’s job is to make a diversified portfolio of bets — you are only one. Most founders find being around VCs distracting and draining because they feel pressure to perform the role of ‘impressive person.’ If you can’t immediately capture value from your performance… why waste your energy?

don’t expect the average investor to provide much value beyond money and connections. This makes the 10% of investors who can be legitimately useful to your business worth their weight in gold. Develop litmus tests to identify the valuable ones quickly and avoid wasting your time trying to convince nonbelievers.

our goal here is to spend as little time fundraising as possible — which requires being strategic about the order in which you talk to investors and how you talk about where things stand as you progress through the raise. The combined force of controlling those two variables are what “generates momentum” during your fundraise process.

Make a list of all the investors you know and can get introduced to, ordering them by the ones you most want on board to the ones you couldn’t care less aboutTalk first to a few low-stakes investors at the bottom of your list to practice your pitch and identify common investor questions and critiques you’re going to getIf available to you, next get a few investors who already wanted to give you money on board so you have a dollar amount you can say you’ve raisedWork your way up your investor list, talking to the investors you most-want-on-board-but-still-need-to-convince last (this optimizes your odds they say yes)

This all goes by much faster if you court investors similarly to how hot girls treat their many potential suitors. If your raise is already a little taken and you exude an air that you don’t need them, mimetically-minded investors become much more interested.

If you’re anything like me, you will worry intensely about not making a fool of yourself. It will probably go ok, but not as amazing or illuminating as you’d hoped. You might leave and feel a deep sense of lostness set in. This is all very normal. In time you will see them in increasing clarity, often noticing the differences between your and their values and why you would not enjoy living their life at all.

the people on pedestals probably hate being there. It’s lonely, hard to trust that the intentions of the new people around you are pure, and you often feel like you’re constantly letting people down. In the end, idolization hurts everyone involved.

Beware of intellectual dementors and clout demonsIntellectual dementors will try to eat your ideas and interestingness — not necessarily to copy you, but to wring your brain dry to amass knowledge themselves. They often play mini IQ games/tests of will in conversation and masquerade as investors while never actually investing. Clout demons are similar, but view people less as brains and more as stepping stones towards supreme social status. The power move to protect yourself from both is to simply abstain from playing their games — give as little info on yourself and your ideas as possible and reflect their questions directly back at them.

People will help you if you ask for what you want clearly and concisely

Knowing what you want requires a lot of upfront soul-searching, followed by strategic and long-term thinking once you’ve committed to a thing (I can’t really demystify this more). Once you’re all in, I highly recommend diligently keeping a list somewhere of the top three things you currently need help with so when people ask, you’re ready.

You don’t want to make people feel like you’re using them but you do want to use your social capital for things you care about. General rule of thumb: ask for things either 1) after a positive interaction or 2) completely out of the blue with a concisely written and compelling email/text. Tone matters because you don’t want to sound desperate and you do want to show you know how to play the game (write like the founder you most admire talks).

once we’ve taken action on behalf of something, our brain assigns more value to said thing. Tim Keller: “The feeling of love follows the action of love.” Love is a strong word here, but the point stands — help people help you. Startups are long-term games, so it only makes sense to do them with people you truly want to be around for a very long time.

Most budgets split production costs into above-the-line, below-the-line and post-production sections. Some budgets may be divided further, but it’s a good idea to use at least these main segments: Above-the-line (ATL) costs include the wages for the cast, producers, director(s) and writer(s). The costs associated with the development, rights and creation of the script are also in this section. Costs for adapting a script from some other source, such as a book or video game, would fall into this category as well. It’s important to diligently review this portion of the budget, as these fees are often contractually defined and strictly enforced. As we’ll see below, some other items in the budget are more flexible, but ATL costs are more likely to be steadfast. Below-the-line (BTL) costs generally cover the bulk of the production expenses in terms of dollar amount. BTL costs include behind-the-scenes crew members like hair and makeup stylists, grips, camera operators, location managers and production accountants. This portion also covers expenses such as office and stage rentals, camera equipment, trucks, set dressing and construction materials.

most budgets contain dozens of smaller sections, usually called accounts, for specific costs that may be relevant to the movie or show. These accounts are usually separated by department. Each department’s account is then further separated into line items. For example, the property department may be given its own account number and within that account there may be a line item for the prop master, property assistants, property rentals, property purchases, a property trailer and so on. Each line item will have its own code number and budgeted amount, allowing the department, as well as the accountant and producers, to quantify how much they can spend on each item.

A carefully laid out budget is not worth much if the same attention is not paid to categorizing and reporting expenses as they come in.

When a department needs to make a rental or purchase, they will issue a PO to the vendor providing those goods or services. A copy of the PO also goes to the producers and the accountant and will include the account code and cost of the item. This allows the accounting and production teams to estimate the spending in real time, without having to wait for an invoice to arrive from the vendor, which may take days or weeks. A PO allows the cost to be recorded right away and avoids surprise costs down the line.

Production companies also commonly issue credit cards to crew members to make smaller purchases, such as lunches and office supplies. These credit cards can be linked directly to the accounting software to rapidly track expenses, depending on the software the project is using.

If the actual expenses of certain line items exceed the budgeted amount, the department head, accountant and producers need to work together to find a solution that satisfies creative and financial concerns. This may involve shifting money from other line items in the budget, or could be as drastic as cutting or rewriting scenes, depending on the scale of the overage.

When a department head suspects that a cost for a certain scene or location may differ substantially from their budgeted amount, they should notify the accountant and producers as soon as possible. This allows all parties more time to find a solution without risking delays to the shooting schedule, which can be incredibly costly in and of itself.