In this edition of Cosmic Conversations, I sat down with Kenneth Thomas, Principal at BackFuture Ventures, a pre-seed and seed-stage fund embedded in the SaaS community through its ties to SaaStock and deep operational roots. Ken shares practical insights for founders navigating the earliest stages of fundraising, pitching, and go-to-market.
Q: What traits do VCs look for in a founder during early conversations?
Founders need clarity, conviction, and a clear sense of connection to the problem they’re solving. A sharp narrative and defined direction are essential. If the story is unclear or scattered, it raises red flags.
A focused understanding of the customer is critical. Trying to serve multiple “ideal customer profiles” indicates a lack of positioning. One ICP means one.
Execution matters just as much as vision. BackFuture looks for signs of strong ownership and delivery. One founder we backed had built a 30-person team and a core data platform still in use within 18 months. It’s not about being a repeat founder, it’s about showing tangible impact.
Q: What makes a startup backable at pre-seed and seed?
Strong storytelling and grounded insight are key. Founders need to clearly explain what they’re building and why it matters.
Operational discipline signals readiness. Investor updates are one of the best early habits. They show how a founder processes challenges, track momentum, and drive outcomes. Even pre-raise, they offer valuable insight into how a company is run.
Q: What are common pitching mistakes and how should founders approach VCs instead?
Long-winded intros, jargon, and lack of focus weaken the first impression. Outreach should be two or three clear sentences, nothing more.
Send the deck before the call. It gives context and moves the conversation from a presentation to a discussion.
Avoid screen-sharing at the start. Build rapport, confirm fit, and then get into the details. Treat it like meeting someone at an event: open naturally, not with a pitch.
Q: How should founders approach your GTM strategy?
Go-to-market strategy must match your stage. At pre-seed, leverage warm networks and early adopters. At seed, focus on outbound and converting cold leads.
Customer interviews should be ongoing. They surface real needs, drive design partnerships, and lead to traction. Founders who treat them seriously often convert those conversations into paying customers.
For low-ACV products, community-led growth may be most effective. For higher-touch sales, build early credibility. Either way, your GTM must reflect how your users actually discover, buy, and adopt.
Q: Where should founders spend capital after raising?
Capital should go toward refining the product and deepening user value. That means investing in team, development, and customer success.
Spending on ads or offices too early is a common mistake. Founders often become too loose with spending post-raise. The focus should be on lean, strategic growth with clear outcomes tied to retention and expansion.
Q: When should founders make their first sales hire?
Founders should lead sales until the motion is repeatable. Bringing in an AE or Head of Sales too early leads to high burn and poor fit.
An SDR is typically the right first hire. They handle top-of-funnel outreach while the founder continues closing. This keeps messaging sharp and the motion founder-led.
Hiring should be based on clear signals: consistent revenue, defined processes, and an inability to manage the volume alone. Bringing in someone without startup experience too early can slow momentum and inflate burn.
Q: How should founders work with their VC after raising?
Founders should see their relationship with VCs as collaborative. BackFuture uses structured touchpoints like SaaStock events, giving founders cycles to engage deeply and then return to execution.
Transparency is non-negotiable. If challenges arise, founders need to communicate clearly. VCs aren’t expecting perfection but want alignment on priorities and needs.
Strong relationships are built on proactive updates, open conversations, and trust through execution.
Key takeaways from this Cosmic Conversation:
- Establish clarity in your narrative and customer focus — one clear ICP signals sharp positioning.
- Demonstrate execution through real-world outcomes, not titles or ideas.
- Write investor updates pre-fundraise to build accountability and show momentum.
- Keep outreach concise and send your deck ahead of meetings to drive higher-quality VC conversations.
- Anchor your GTM strategy in stage-appropriate motions, from design partners to outbound conversions.
- Spend early capital on product and customer traction — avoid waste on ads or offices.
- Delay senior sales hires until your sales motion is proven and you can’t handle volume alone.
- Maintain transparency post-raise — investors value clarity over perfection.
