Candidates who come in through referrals are more likely to be hired, more likely to last out the year, and more likely to succeed in performance reviews. Referral candidates are simply better candidates.

This number will get you started. And if you remember the discussion from the previous chapter, you can now multiply this amount by 3–5x to get a ballpark of what kind of valuation you’ll probably see when you get a term sheet.

But if you’re raising a first round of investment from a variety of investors, it could go either way. Conventional wisdom says to push for debt. Some companies will use this as a concession — switching from debt to a priced round as a negotiating tactic. Others will dig on the debt structure and make other concessions instead.

It’s not always a negative experience; it can, in fact, be quite positive. That is, incidentally, why she prefers to call it a “phenomenon” instead of a “syndrome.” IP, she said, can do great things. Some individuals with IP use it to propel themselves to tremendous heights. Common symptoms of IP include perfectionism, a tendency to “overwork” —

The “how much money do we need” number also is linked to your credibility as founders. If you are first-time founders without a strong track record, you should target raising $250K–$1M in a seed round. If you are the graduate of a top-notch accelerator or have an impressive reputation for success in your field, you can go much higher with your

There’s one easy case for debt: when the investors are family and friends. Financing that values the company either too high or too low can make later fundraising difficult. When the round is family and friends, that’s a real risk. Debt lets you skip the valuation exercise, avoiding the problem.

I suggest a simple rule: no more than five interviews and two weeks once the candidate sets foot in the building.

So, as much as I advocate transparency in most areas, candidate rejections are an area to consider keeping your feedback terse.

Third, give positive reinforcement for great referrals. On the first day when the new person starts, announce to the whole company who referred her and make a big deal of it.