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VC POVfundraising 101md_�dXU� _Y dn� cdb YWXd)d �
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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 pointersto 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 � �cYW YVYS d� _bdY_ �_V�i_eb�b_e T
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 presentationsBackup slidesFinancial plansProduct roadmapExecutive summaryElevator pitch
Step 4: Get pre-pitch advice
from 1-2 VCs to test your materials.
-,vcpov.com
Step 5: meet all your potential lead investorsover a short period of time to build momentum.
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--vcpov.com
?_ 6
Momentum Will ideally help you get 2+ term sheetsat 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
entrepreneurspresent their plans…
and how VCs actually
.
-3vcpov.com
Breaking downthe 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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.,vcpov.com
The problem
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9 WU �Yc� � b_VUccY_ �T_W)g Ub� __ Y W�d_�Uh T�XUb�S YU dU U �
.-vcpov.com
Do people care about 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
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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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Tell a story
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dXYc� b_R U 7�Ac�dXYc�U _eWX�d_� UUi_e�W_Y W�gXU �dY Uc�bU�d_eWX7
.0vcpov.com
Solve a real problem
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Show a killer demoTell a story
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#$! 8!%8#
.1vcpov.com
The team
.2vcpov.com
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�
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CEO/Co-founder) FbUfY_ec� V_e TUb� �
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V_b�#)))
.3vcpov.com
or don’t work at .
if you didn’t graduate from anDon’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 returnsbecause 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 justabout
size./1vcpov.com
focus
timing
big vision
barriers
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/2vcpov.com
The
competition
/3vcpov.com
Show how you’ll be 10X betteron an attribute your target customer cares about.
Show why competitors can’tor won’t do what you do.
Differentiation doesn't just mean adding
more features or going cheaper.
34vcpov.com
f Y RY Ydi
bYSU
youstand out from the
competition. UYWXR_bc
b_VUccY_ c
Show why
/5vcpov.com
Traction
/6vcpov.com
@ fU�i_e�ReY d��Wb_gdX�SXY U7
LXUbU�gY �dXUUhd� 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
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c_ebSUc�dX d�S �cS U7
/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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: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
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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TUbYfUT7
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02vcpov.com
The ask
03vcpov.com
When a
startup asksfor 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
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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
What does Valuation mean,
and how is it calculated?
Simply put…
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… 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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Y fUcd_b�gY �_VdU �i� _bU�
V_b� � YUSU�_V�dXU� SdY_
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-bookhelps you on your
fundraising trail!
48vcpov.com
Thanks for
reading!
&VC POV
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49
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Credits:
10vcpov.com