Fundraising Fundamentals by Geoff Ralston
by Parker · 73 things on Twos
- https://www.youtube.com/watch?v=gcevHkNGrWQ&ab_channel=YCombinator
- You'll hear no a lot
- You need to believe
- Figure out the story of your startup
- Why are you going to matter in the future?
- What is it about your product and opportunity that tells a story about the future that a Venture Capitalist would care about?
- Find the right investors
- Talk to other companies
- Do research
- Get organized
- You'll find the right investors
- Agree on a price
- Get the money in the bank
- Get Back to work
- Why raise money?
- Pay for stuff
- Hire people
- Rent offices
- Grow
- Startup = Grow
- Having money can be a competitive advantage
- When to raise?
- When you don't need it
- VCs can smell when you need it
- How much to raise?
- Assume this will be the last time you'll ever need to raise
- Raise enough so you won't need more
- Raise enough to get to profitability
- Rule of Thumb: #engs/hires * 15(thousand) * 18(months)
- How to raise
- It's about you
- If you were an investor would you invest in you?
- Can you take an idea and turn it into a reality that matters? Into a big company?
- Investors are also investing in...
- The story of your start up
- What product are you building?
- For what opportunity?
- For what customers?
- A story that is:
- Interesting
- Believable
- Resonates
- Tells the Future (they can believe in)
- Memorable
- A story that has:
- A large opportunity
- VCs care about returns
- Compelling product/traction
- An impressive story teller/team
- A story that matters
- Building your story
- Begin with your idea
- Create one/two line description
- Create your vertebrae
- Create a 2 minute pitch
- Cofounders all share
- Everything you are doing as a founder is being a salesperson: to investors, customers, partners, or yourself to keep going after you hear no
- What valuation?
- Make sure your valuation won't come down the next time you raise
- Read the fine print
- Do your homework on investors. Know what they've invested in
- Simplify your pitch. Capture their attention
- Don't be boring. Tell your story in a way that is fascinating and compelling from the start
- Demos are gold
- Give a feel for what it will be
- Listen to their feedback
- Decks matter less for seed
- You are making a promise to return their money and more so there is a lot of trust to build
- Don't exaggerate or pretend to know things you don't know
- No BS, VCs can smell it
- You're building something sustainable
- Fundraising is not winning
- Choose your investors with care