Understand how investors see the world to improve your fundraising.

1. ELIZABETH YIN
PARTNER
#saastrannual
11 Funding Secrets Learned
from 1600 Startups

2. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
ABOUT ME
• Partner at 500 Startups
• Have seen 20k+ pitches in ~2 years
• Co-founded / CEO of LaunchBit (acq BuySellAds)
• Raise $1m+

3. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
HOW MANY OF YOU HAVE
RAISED MONEY?
• Seed round?
• Series A?
• Series B?
• Series C or above?

4. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
1) INVESTORS DON’T NEED EVERY
STARTUP TO WIN IN ORDER TO MAKE
MONEY
• Approximate breakdown of 500
Startups seed program batches
• Sample size: 30-50 companies per
batch
• 2011-present
Estimated as of 1/31/2017 based on the General Partners' current valuations of portfolio companies who completed the
seed program across 500 Startups funds in line with the 500 Startups Valuation Policy.

5. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
2) WINNERS MUST WIN
BIG
• ~10% of portfolio are breakout companies
• Investors make money ONLY if breakouts are BIG
breakouts
• E.g. 50-100x vs 5-10x
Estimated as of 1/31/2017 based on the General Partners' current valuations of portfolio companies who completed the seed program across 500 Startups funds in line with the 500 Startups Valuation Policy.

6. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
3) IN FACT, WHICH BATCH
IS DOING BETTER?
Estimated as of 1/31/2017 based on the General Partners' current valuations of portfolio companies who completed the seed program across 500 Startups funds in line with the 500 Startups Valuation Policy.

7. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
4) THIS IS WHERE THE UNICORN
OBSESSION COMES FROM
Unicorns are companies that
• Have raised money at $1B+ valuations
• Have exited for $1B+
Img credit: clipartfest.com

8. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
5) HOW DO YOU BECOME
“FUNDABLE”?You
• Are in a hot space
• Have a “hot” team
• Are growing above-and-beyond-quickly
• Have built a really difficult technology
• …

9. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
6) BUT MOST STARTUPS DON’T
HAVE THESE CHARACTERISTICS
The best entrepreneurs get funded because…
They execute their
fundraising process well

10. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
7) CREATE FORCING
FUNCTIONS
How to create urgency the right way with concrete
timelines
• “I’m moving into 3 all-partner meetings next week
on Sand Hill”
• “I’m taking 4 investor meetings per day”

11. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
8) WRONG: THIS DOES
NOT CREATE URGENCY
How NOT to create urgency
• “My round is closing next week”
• “We have lots of investor interest”
• “I need the money now”

12. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
9) THIS MEANS YOU NEED TO LINE UP
ALL YOUR INVESTOR MEETINGS
TOGETHERCondense your fundraising meetings to
• Create urgency
• Drive up your valuation / create competition
Start scheduling these meetings 4 weeks in advance
• Do your research / build a list
• Investors have busy schedules - set your meetings up
in advance

13. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
10) DRIVE MEETINGS
FORWARD AND CLOSE
Get a concrete next step

14. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
11) KNOW WHERE YOU
STAND
Rough SaaS fundraising metrics
• Revenue:
• Seed: $100k ARR
• Post seed: $500k ARR
• Series A: $2M ARR
• Growth:
• 10-30% MoM
• Churn:
• 1-3% Monthly

15. 11 Funding Secrets Learned from 1600 Startups
#saastrannual
THANKS (& READ MY
BLOG ON FUNDRAISING)
• blog.elizabethyin.com
• @dunkhippo33