Milad Alucozai’s Post

After nearly six incredible years, I have officially left BoxOne Ventures, filled with gratitude and excitement. My journey has been transformative, and I am immensely proud of what we have achieved together. My path into venture capital was unique, beginning as a scientist turned founder and entrepreneur. Combining my technical and business development expertise with a relentless desire to support founders, I've discovered the significant impact I can make in the startup community as a venture capitalist. There is a persistent gap in support for opportunities that are over-scienced and underfunded, and I am committed to bridging this gap by identifying and assisting founders from the outset. In 2018, I met Josh at Creative Destruction Lab. We connected over our mutual passion for pushing the boundaries of bioengineering and computational advancement. We immediately began finding ways to work together and make investments, often as the first check into startups run by world-class founders. Fast forward nearly six years, we've built a firm recognized as one of the most active early-stage investors, with a portfolio exceeding 100 companies and multiple successful exits. Our brand stands as a testament to our founders and community partners who collaborate with us to make this possible. I have always believed in the power of change and the opportunities it brings. With that spirit, I spent the last year transitioning out of my role. In November of last year, we hired Rebecca upon completion of her PhD. I've witnessed her growth from Senior Analyst to Investment Manager, driven by her support for our portfolio founders and her genuine desire to help others. I am taking time to enjoy life with my family and thoughtfully plan my next chapter, ensuring it maximizes impact. This is not a farewell, but a 'see you soon.' Stay tuned for updates. Thank you all for being an integral part of this remarkable journey. I am excited about the future and welcome the opportunity to connect and explore new possibilities! Onward and upward! 🚀

For personal and professional growth, it's essential to be both a mentor and a mentee throughout your life. Let these relationships develop naturally and reciprocally, not transactional. A key lesson I've learned is the critical role mentors play, especially early on. The best mentors see beyond your credentials and invest in helping you become your best self. I met Scott Alpizar through the Material Change Institute. He's a fellow neuroscientist turned venture capitalist dedicated to empowering academic entrepreneurship in the life sciences. His is always looking for ways to support for local and regional ecosystem development. I look forward to future collaborations and his career trajectory! Mentors are found organically by building genuine relationships rather than through transactional interactions. Thank you Eve Blossom for starting such an important fellowship.

Founders, joining the right incubators can be a game-changer for your startup. The best incubators offer resources that significantly enhance your chances of success without any strings attached. I recently spent a day at JLABS Toronto, the "no strings attached" innovation incubator of Johnson & Johnson. JLABS has grown into a global organization, helping big ideas from small beginnings get off the ground. They have a great reputation, take no equity, and boast many success stories. Melinda Richter created the organization with the intent of removing barriers for entrepreneurs around the world. It was inspiring to witness the vibrant energy, tour the impressive facilities, and meet with diverse CEOs from a dozen pan-Canadian startups. None of this would be possible without strong leadership. JLABS Toronto is led by Dozie Amuzie, a life science leader and translational sciences expert, whom I am proud to call a friend. Dozie and his team are deeply committed to nurturing ecosystems and accelerating the development of groundbreaking ideas and technologies. Thank you Dozie and the entire team for inviting me to speak and meet all the wonderful CEOs. I look forward to my next visit! #venturecapital #incubator #accelerator #biotech #startups #lifesciences #healthcare

Founders, beware of the so-called "master investor lists" circulating on LinkedIn. Falling for these shortcuts is a rookie mistake. Cold emailing investors from random lists is one of the least effective ways to secure financing. Instead, focus on building genuine connections and understanding what truly drives the investors you want to work with. Your chances of success will skyrocket when you prioritize quality over quantity in your outreach efforts. One of the best approaches to meeting investors is attending events in person. Last week, I attended Creative Destruction Lab in Toronto, which hosted nearly 1,000 attendees at #SuperSession2024. I listened to pitches from 16 companies from around the world and had the chance to meet hundreds of founders and investors. The event was filled with brilliant, passionate, and thoughtful leaders, all striving to solve challenging problems with world-class teams and technologies. If you are a first-time or repeat founder, you should explore programs that connect you with local investors and mentors. CDL alumni have gone on to generate over $35 billion in equity value through the commercialization of their science and technology. #venturecapital #startups #VCs #fundraising #networking #founder

One of the biggest mistakes I see founders make is how they describe their competition. It's crucial to frame this with the investor's perspective in mind. When investors inquire about your competition, this is what they actually are asking: 1. Who are the other VC-Backed Startups? Start by identifying any other VC-backed startups in your space. Detail how much they have raised, from whom, and when. This helps investors understand the competitive landscape, assess the financial intensity of the space, and see how your startup compares in terms of approach and traction. 2. Primary Product Competition: Highlight any major private or public tech companies offering a core product that competes with yours. This suggests a sufficiently large market and provides a clear comparison for differentiation in terms of resources and strategies. 3. Secondary Product Competition: Don't overlook where large tech companies or other startups have secondary products that compete with yours. This forces investors to consider why those products aren't core, the less visible aspects of their strategy, what their plans are, and how you plan to outperform them. 4. Legacy Competitors/Manual Processes: While often overemphasized, it's still important to compare your offering with legacy solutions or manual processes. This shows how your innovation stands out against traditional methods. However, please do not let this be the only focus of your narrative. Remember, every investor has their own comfort zone. Some may avoid startups with multiple VC-backed competitors or those competing directly with a large tech company's core product. As a founder, it's crucial to understand each investor's preferences. When done correctly, a well-crafted competition narrative and slide can tell you if a VC is the right partner for you and whether you have effectively articulated your competitive landscape. #vcs #founders #venturecapital #startups #founderadvice #fundraising

Securing a term sheet in today's environment is challenging, but valuation isn't everything. Watch out for these red flags: 1) Excessive control provisions that limit your autonomy. I have seen veto rights, controls on hiring and firing, control on future funding rounds, or overburdensome board constructions. 2) Unreasonable deadlines for milestones. I have seen unsophisticated investors set key milestones in an attempt to “encourage” the founders to deliver, but in reality rush the team leading to mistakes and regrets. 3) Onerous liquidation preferences that can severely dilute founders. Liquidation preference determines how proceeds from an exit are distributed. I have seen 3x or worse on some term sheets. 4) Misaligned incentives prioritizing investor gains over company health. I have seen high interest rates, ratchet provisions that increase investor ownership, and even uncapped returns. 5) Burdensome reporting requirements that distract your team. I have seen groups ask for audited financials monthly and constant KPI updates. Don’t be afraid to negotiate or walk away from a term sheet. The terms you agree to now will impact your business for years to come. Any other red flags you've seen that would be helpful for founders to know? #venturecapital #startups #founders #termsheets #fundraising #earlystage

Sixteen years ago, Airbnb launched, and today it's worth $94 billion. When they first started, they faced numerous rejections from investors, including this one: "The market opportunity was not large enough." This statement reflects a common, often vague, conclusion some VCs make when they quickly judge a founder and their technology. At the time, Airbnb was raising $150,000 at a $1.5 million valuation. A $150,000 investment would have translated into a 10% ownership stake. The vision they pitched back then is the same vision they operate with today. Every founder knows the sting of rejection emails. The best among us use that rejection to fuel our perseverance and belief in our vision. #FounderLife #Startups #Resilience #venturecapital

One of the most frustrating pass notes founders receive is, "It's too early for us." It stings even more when it comes from someone who has never built a startup but claims to be an early-stage fund that makes big bets. But don't give up. Every "too early" is a step closer to finding that one investor who sees your vision and potential. There are lots of fundraising rounds going on right now. But here's a reminder to all of the founders trying to raise money: Keep pushing forward, keep refining your pitch, keep building value, and most importantly, keep believing in your dream. You only need one yes in the sea of noes. ⛵ #startups #founders #venturecapital

Founders, remember that both successful and unsuccessful fundraising rounds start the same way—filled with "no's." The key difference? Perseverance. The best founders understand that fundraising is challenging and don't take "no's" personally. Often, a "no" is more about the investor's internal circumstances than your startup. Fundraising rounds are happening, even if they don't always make headlines. To all the founders navigating the highs and lows of raising funds—stay resilient. Every "no" is a step closer to that "yes." Your hard work and determination will eventually pay off. Keep pushing forward! 🚀💪 #startups #vc #founder #funding #business #venturecapital #entrepreneur #healthcare #deeptech #fundraising #seed #preseed