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VC POV
fundraising 101
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What does it take to raise a round?
Lots of time & investor meetings.
.
time taken meetings with investors
vcpov.com
Here are some pointers
to help speed you along.
/vcpov.com
What’s inside:
Preparing the
approach
Breaking down
the pitch
The ask:
VC funding
H YTU 2 H YTU -4 H YTU 03
0vcpov.com
Learning a few fundraising tips
raise money.
doesn’t mean you’ll
be able to
1vcpov.com
Preparing the
approach
2vcpov.com
Step 1: Download our
spreadsheet and follow along.
Step 2: Classify investors
as leads & non-leads.
What is a lead? 9 Y fUcd_b dX d S VY
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3vcpov.com
Portfolio companies & prominent outside founders
Other good investors
Lawyers, accountants, & other service providers
People looking for finder’s fees
Some sources are
better than others.
Step 3: Get warm intros from people who know the VC
4vcpov.com
Pro-tip: intro sources matter less if you have…
or known investors
already with you
an impressive
pedigree
numbers up &
to the right
5vcpov.com
A PowerPoint for presentations
Backup slides
Financial plans
Product roadmap
Executive summary
Elevator pitch
Step 4: Get pre-pitch advice
from 1-2 VCs to test your materials.
-,vcpov.com
Step 5: meet all
your potential
lead investors
over a short
period of time to
build momentum.
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Momentum
Will ideally
help you get 2+
term sheets
at the
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same time.
-.vcpov.com
Wait,
but what happens
in between?
-/vcpov.com
Get ready for
pitching
-0vcpov.com
There are plenty of
great free resources
aimed at startups
writing a business
plan or pitching VCs.
-1vcpov.com
But, there is still a major disconnect
-2vcpov.com
between how
entrepreneurs
present their plans…
and how VCs actually
.
-3vcpov.com
Breaking
down
the pitch
-4
skip to slide 43
vcpov.com
Breaking down the pitch:
The problem 20
The solution 23
The team 26
The market 29
The competition 33
Traction 36
The business model 39
-5vcpov.com
The problem
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The problem
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.-vcpov.com
Do people careabout this
problem? Is it really critical?
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..vcpov.com
The
solution
./vcpov.com
Solve a real
problem
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When VCs hear your solution,
they want you to…
Show a killer demo
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.0vcpov.com
Solve a real
problem
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Show a killer demoTell a story
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.1vcpov.com
The team
.2vcpov.com
A-Team: balance & skills for the task at hand
CTO
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.3vcpov.com
or don’t work at .
if you didn’t graduate from an
Don’t be discouraged
.4vcpov.com
The
market
29vcpov.com
VC is a
Why are VCs so obsessed
with big markets?
VCs want big hits with big returns
because only a handful of startups can
general VC-scale returns.
30vcpov.com
focus
timing
big vision
barriers
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But it’s
not just
about
size.
/1vcpov.com
focus
timing
big vision
barriers
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/2vcpov.com
The
competition
/3vcpov.com
Show how you’ll be 10X better
on an attribute your
target customer
cares about.
Show why competitors can’t
or won’t do what you do.
Differentiation doesn't just mean adding
more features or going cheaper.
34vcpov.com
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you
stand out
from the
competition. UYWXR_bc
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Show why
/5vcpov.com
Traction
/6vcpov.com
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It’s not
all about
growth. Ac Yd bU U dY W bUfU eU %
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Quality of
growth
Scalability
Repeatability
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/7vcpov.com
Be specific and show your learnings
First 1,000 customers:
Tested ___ traction channels,
reached $___ customer acquisition
cost, and $___ life time value
from Facebook ads, printed flyers,
and word of mouth.
Next 100,000 customers:
Will double down on existing
channels for 40,000 users. Next
60,000 users will come from
partnerships with ___ & ___.
38vcpov.com
The
business
model
39vcpov.com
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How long will this product take
to monetize?
How much of the value created
can be captured?
What evidence is there that these
channels work?
Questions you’ll need to be able to answer:
40vcpov.com
How long will this product take
to monetize?
How much of the value created
can be captured?
What evidence is there that these
channels work?
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01vcpov.com
Financial projections:
What do VCs want to see?
VCs look for assumptions & how you control for expenses:
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02vcpov.com
The ask
03vcpov.com
When a
startup asks
for capital,
VCs want
to know… LY dXYc d U i_e d_ U Y WVe f eU Y V USdY_ _Y d7
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04vcpov.com
What does Valuation mean,
and how is it calculated?
Simply put…
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dXU g dc d_ _g÷ = e dY_
… but that’s not all there is to it.
05vcpov.com
Valuation is influenced by a few key factors:
ownership
targets
supply &
demand
deal
terms
investor
conviction
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06vcpov.com
Have an offer?
Now the fun part begins.
What do VCS ask for in legal
due diligence?
Go fill out the rest of the round.
07vcpov.com
We hope this
e-book
helps you on your
fundraising
trail!
48vcpov.com
Thanks for
reading!
&VC POV
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AS_ c TUcYW UT Ri bUU Y T TYcdbYRedUT Ri dYS_
Credits:
10vcpov.com

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Startup Fundraising 101

  • 1. VC POV fundraising 101 md_ dXU _Y dn cdb YWXd)d Ri ( V_b cd bde c
  • 2. What does it take to raise a round? Lots of time & investor meetings. . time taken meetings with investors vcpov.com
  • 3. Here are some pointers to help speed you along. /vcpov.com
  • 4. What’s inside: Preparing the approach Breaking down the pitch The ask: VC funding H YTU 2 H YTU -4 H YTU 03 0vcpov.com
  • 5. Learning a few fundraising tips raise money. doesn’t mean you’ll be able to 1vcpov.com
  • 7. Step 1: Download our spreadsheet and follow along. Step 2: Classify investors as leads & non-leads. What is a lead? 9 Y fUcd_b dX d S VY cYW YVYS d _bdY_ _V i_eb b_e T 3vcpov.com
  • 8. Portfolio companies & prominent outside founders Other good investors Lawyers, accountants, & other service providers People looking for finder’s fees Some sources are better than others. Step 3: Get warm intros from people who know the VC 4vcpov.com
  • 9. Pro-tip: intro sources matter less if you have… or known investors already with you an impressive pedigree numbers up & to the right 5vcpov.com
  • 10. A PowerPoint for presentations Backup slides Financial plans Product roadmap Executive summary Elevator pitch Step 4: Get pre-pitch advice from 1-2 VCs to test your materials. -,vcpov.com
  • 11. Step 5: meet all your potential lead investors over a short period of time to build momentum. DUUd Y -). gUU c --vcpov.com
  • 12. ?_ 6 Momentum Will ideally help you get 2+ term sheets at the DUUd _fUb -). gUU c same time. -.vcpov.com
  • 13. Wait, but what happens in between? -/vcpov.com
  • 15. There are plenty of great free resources aimed at startups writing a business plan or pitching VCs. -1vcpov.com
  • 16. But, there is still a major disconnect -2vcpov.com
  • 17. between how entrepreneurs present their plans… and how VCs actually . -3vcpov.com
  • 19. Breaking down the pitch: The problem 20 The solution 23 The team 26 The market 29 The competition 33 Traction 36 The business model 39 -5vcpov.com
  • 20. The problem IXYc Yc B U B U _fUc XUb T_W Red cXUlc cg UT gYdX g_b T XUb T_W UUTc g Y W .,vcpov.com
  • 21. The problem :_R Yc bUdYbUT T _fUc g Y W V_b UhUbSYcU( Red XU VUU c _ U i T g dc c_ U S_ i 9 Ti Yc U b i)RYbT gX_ g c XYc T_W UfUbi _b Y W( Red XU S_e T ecU Ydd U Uhdb S cX 9 WU Yc b_VUccY_ T_W)g Ub __ Y W d_ Uh T XUb S YU dU U .-vcpov.com
  • 22. Do people careabout this problem? Is it really critical? @ c iR_Ti bUfY_ec i dbYUT d_ c_ fU dXYc b_R U Y g ic dX d bU ceR_ dY 7 _b Uh U( d__ Uh U cYfU( c _g( _b Y S_ fU YU d7 Ac dXUbU b_fU TU T V_b c_ edY_ &Y U _dXUb c gYdX Y Y_ c _V T_g _ Tc( _dXUb S_ YUc 7 @_g Y _bd d Yc dXYc b_R U Y bU dY_ d_ _dXUb T i)d_)T i UUTc7 _ U_ Ulc UiUc YWXd e gXU i_e U dY_ dXYc b_R U 7 @_g VbUaeU d i T_Uc dXYc b_R U S_ U e T X_g R T Yc Yd7 ..vcpov.com
  • 24. Solve a real problem Ac Yd S U b dX d dXU c_ edY_ TYbUSd i TTbUccUc dXU b_R U V_b Ui cd UX_ TUbc gYdX_ed Y db_TeSY W Ug Y _Y dc7 When VCs hear your solution, they want you to… Show a killer demo _Sec _ RU UVYdc( _d VU debUc HX_g gX d dXYc b_TeSd S RUS_ U Y dXU VedebU Tell a story LX d Uc i_e ccY_ dU R_ed dXYc b_R U 7 Ac dXYc U _eWX d_ UU i_e W_Y W gXU dY Uc bU d_eWX7 .0vcpov.com
  • 25. Solve a real problem _b _g Ubc6 -,M SXU Ub dX ece T_W g Ub( T _bU S_ fU YU d _b T_Wc6 _bU dY U gYdX Xe c UfUbiT i _b T_W)g Ubc6 U _ Ui _b c U T dY U gYdX T_Wc gXY U _ dXU g i d_ g_b B Ulc c_ edY_ Ybc T_W)_g Ubc gYdX T_W)g Ubc Y cU Ucc UUb)d_) UUb Uh UbYU SU6 Show a killer demoTell a story A _fU i T_W( Red RUS ecU A X T d_ cd i VdUb g_b _ U T i( XU ceVVUbUT Vb_ UUTY W d_ UU #$! 8!%8# .1vcpov.com
  • 27. A-Team: balance & skills for the task at hand CTO ) A bUccYfU dUSX YS Uh UbYU SU % g_b XYcd_bi CPO/Co-founder ) 9g bTkgY Y W fUdUbY bY ) HU c_ UT T_W)g Ub CEO/Co-founder ) FbUfY_ec V_e TUb U TUbcXY Uh UbYU SU ) G YcUT #PP _b c_ T V_b #))) .3vcpov.com
  • 28. or don’t work at . if you didn’t graduate from an Don’t be discouraged .4vcpov.com
  • 30. VC is a Why are VCs so obsessed with big markets? VCs want big hits with big returns because only a handful of startups can general VC-scale returns. 30vcpov.com
  • 31. focus timing big vision barriers LX_ bU i_eb d bWUd ecUbc T X_g gY i_e bU SX dXU 7 D b Ud Wb_gdX S RU c Y _bd d c cYjU d_T i( T YV dXUbU bU ld iUd bWU ceSSUccUc Y i_eb Y Tecdbi( c gY g_ TUb gXi _g Yc dXU bYWXd dY U 9bU dXUbU R bbYUbc d_ U dbi( bUWe dY_ c( _b Ve T U d SX U WUc V_b U_ U dbiY W d_ S_ i i_e7 HX_g X_g dXU c U S_bU S_ UdU Si dX d U R UT i_e d_ ceSSUUT Y VYbcd cUW U d gY _g i_e d_ T_ Y dU bWU SY bi b Udc But it’s not just about size. /1vcpov.com
  • 32. focus timing big vision barriers B Ulc d bWUd ecUbc bU g_b Y W b_VUccY_ c T bU dc gX_ _fU dXUYb T_Wc Red X fU dXUYb X Tc Ve I_T i dXUi i b_e T #.,, _ dX V_b T_W)S bU _W S bU Yc RUY W _edc_ebSUT _bU c b_VUccY_ c T_ ld X fU dY U FU_ U bU __ Y W d_ U _bU _ Ui _VV UhYcdY W ccUdc fY cX bY W US_ _ i IXUbU Yc VYbcd) _fUb Tf d WU d_ ReY TY W cdb_ W Udg_b _V T_W)g Ubc B U g dc XUb S_ i d_ RUS_ U X_ecUX_ T U _VVUbY W f bYUdi _V _ )TU T cUbfYSUc V_b T_W) _fUbc /2vcpov.com
  • 34. Show how you’ll be 10X better on an attribute your target customer cares about. Show why competitors can’t or won’t do what you do. Differentiation doesn't just mean adding more features or going cheaper. 34vcpov.com
  • 35. f Y RY Ydi bYSU you stand out from the competition. UYWXR_bc b_VUccY_ c Show why /5vcpov.com
  • 37. @ fU i_e ReY d Wb_gdX SXY U7 LXUbU gY dXU Uhd Y Y_ _ U Vb_ 7 It’s not all about growth. Ac Yd bU U dY W bUfU eU % RUX fY_b7 9bU ecUbc U W WUT7 Quality of growth Scalability Repeatability Ac _V dX d db SdY_ Vb_ VbYU Tc T V Y i( _b c_ebSUc dX d S cS U7 /7vcpov.com
  • 38. Be specific and show your learnings First 1,000 customers: Tested ___ traction channels, reached $___ customer acquisition cost, and $___ life time value from Facebook ads, printed flyers, and word of mouth. Next 100,000 customers: Will double down on existing channels for 40,000 users. Next 60,000 users will come from partnerships with ___ & ___. 38vcpov.com
  • 40. Yd UVVYSYU Si _V UhYdc TYbUSd i Y Sdc Y fUcd U d bUdeb c Ug cd bde c X fU dXU ehebi d_ X_ T _VV _ U Y WVe _ UdYj dY_ IXYc Yc TUdUb Y UT Ri Secd_ Ub gY Y W Ucc d_ i T dUb dYfUc Y dXU b Ud :UU dXUbU( T_ U dX d7 h UbY U dc7 9bU SebbU d Secd_ Ubc iY W dXYc _e d7 How long will this product take to monetize? How much of the value created can be captured? What evidence is there that these channels work? Questions you’ll need to be able to answer: 40vcpov.com
  • 41. How long will this product take to monetize? How much of the value created can be captured? What evidence is there that these channels work? B U Uh USdc d_ X fU PPP iY W Secd_ Ubc T bU SX PPP Y bUfU eU Ri PPP JRUb V_b _W L Ubc RUd g c ceSSUccVe B U cYW UT _ PPP iY W Secd_ Ubc gYdX _g SXeb B U Yc d bWUdY W b_VUccY_ c gX_cU dY U Yc f e R U T bU e TUbcUbfUT Ri T_W)g Ubc d_T i 01vcpov.com
  • 42. Financial projections: What do VCs want to see? VCs look for assumptions & how you control for expenses: 9bU V_e TUb U _iUU c bYUc d__ XYWX7 dXU V_e TUb cU U _iUUc _ Ucc c bi T _bU _ dY_ c7 _ b UdY W % c Uc cce dY_ c U cU cU7 @_g gUbU dXUi TUbYfUT7 @_g RYW Yc dXU _dU dY 1 iU bc T_g dXU b_ T7 Ac dXYc )cS U S_ i7 02vcpov.com
  • 44. When a startup asks for capital, VCs want to know… LY dXYc d U i_e d_ U Y WVe f eU Y V USdY_ _Y d7 &Y U XYWXUb f e dY_ _b b_VYd RY Ydi @_g eSX bU i_e c Y W V_b7 Ac i_eb c gYdXY i Uh USdUT b WU7 @_g eSX _V dXU S_ i g_e T A _g 7 @_g gY i_e c U T dXU _ Ui7 04vcpov.com
  • 45. What does Valuation mean, and how is it calculated? Simply put… 9 _e d _V S Yd c d_ Y fUcd FUbSU d WU _V dXU S_ i dXU g dc d_ _g÷ = e dY_ … but that’s not all there is to it. 05vcpov.com
  • 46. Valuation is influenced by a few key factors: ownership targets supply & demand deal terms investor conviction _b Uh U( YV dXU g dc .1$ _V dXU S_ i V_b #- Y Y_ ( dXU f e dY_ RUS_ Uc #0 Y Y_ _cd) _ Ui @YWX TU T V_b i_eb S_ i S XU b YcU i_eb f e dY_ @YWX TU T Y dXU Y Tecdbi XU UfU _bU IUb c Y U m YaeYT dY_ bUVUbU SUn % m b_)b d bYWXdcn i bd Y f e dY_ ( d__ CU b i_eb dUb c! N_e S ld bU i Y f eU _ S_ fYSdY_ ( Red UhSYdUT Y fUcd_b gY _VdU i _bU V_b YUSU _V dXU SdY_ 06vcpov.com
  • 47. Have an offer? Now the fun part begins. What do VCS ask for in legal due diligence? Go fill out the rest of the round. 07vcpov.com
  • 48. We hope this e-book helps you on your fundraising trail! 48vcpov.com
  • 49. Thanks for reading! &VC POV UcYW UT Ri :U i Y ( 9 icd 8 CY_ :YbT 49
  • 50. E_dUR__ Wb XYS6 Xdd c6 bdYSe dU) XUb_Uc c/ j_ gc S_ e _ Tc bdU biT_VR aPH Yb E_dUR__ P YbcdF WU W YcS_ USd Wb XYS6 Xdd 6 b UdY W T S_ g )S_ dU d ) _ Tc .,-0 ,0 cXeddUbcd_S P-14/0.,2/)TYcS_ USd)U-/54.142..0-4 W AS_ c TUcYW UT Ri bUU Y T TYcdbYRedUT Ri dYS_ Credits: 10vcpov.com