Random Sunday Fundraising Advice
by Joe · 10 things on Twos
- Pre-seed should be $5-10M post (raising 1-2M, with no/early revenues) and the seed round should be $10-20M post (raising 2-5M, with $10-25K+ ARR). This works for 90% of companies - outliers are those where it's a very experienced founding team...
- Don’t call it a project
- Don’t ask if you can pitch
- Don’t ask for email until later
- If you do pitch, share info/stats/no jargon with deck
- Get the investor's name right - e.g., I'm not "Jasper"
- Don't say 'we are closing next Friday' - if it's not true
- Don't highlight winning a pitch competition or being Forbes 30 under 30 as if it's traction - it's not
- Don't ask the investor to sign an NDA - they won't
- Don't say in your initial DM or email "I'm raising at X million valuation" unless you have a signed term sheet that says "X million valuation"...