My friend Stephan von Perger, Associate at Wellington Partners in London has put together a deck with a lot of great tips and advise on the fundraising process for startups. He presented it at Startsummit in St Gallen in April 2015. It is well worth startup founders to read as there are a lot of good soft tips about how to interact with venture capitalists.
“VC is for growth, bootstrapping is for freedom”
Some tips from Stephan of Wellington Partners
- Raise 12-24 months of runway, you’ll give up around 25% equity and consider a convertible note instead of a priced round (Note- typically for less than $1.5m)
- Getting on TechCrunch is only relevant if your customers are reading it (Ie. it’s for you ego otherwise)
- Don’t forget ESOP when negotiating valuation (This is called the option pol shuffle)
- Work with an experienced lawyer (Who is on your side)
- Get intros don’t cold email. Make it easier for those making intros by giving them the info they need (Do the work for people, to help you help you!)
- Know your metrics and track them. Ask VCs what metrics matter to them ahead of time if you can. Be consistent in the definition of metrics
The Fundraising 101 deck
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