Fundraising

Fundraising

Fundraising Stages

Stage	Typical Amount	Investors	Milestones Needed
Pre-seed	$250K–$2M	Angels, pre-seed funds	Idea + team
Seed	$1M–$5M	Seed funds, angels	MVP or early traction
Series A	$5M–$20M	VC funds	PMF evidence, early revenue
Series B	$20M–$75M	Growth VCs	Proven GTM, scaling revenue
Series C+	$50M–$200M+	Late-stage VCs, PE	Market leadership, path to profitability
IPO	$100M+	Public markets	Scale, predictable growth, profitability

---

Investor Types

Type	Check Size	Typical Stage	What They Offer
Angel	$25K–$500K	Pre-seed/Seed	Networks, quick decisions
Angel syndicate	$250K–$2M	Seed	Combined check, faster process
Pre-seed fund	$250K–$1M	Pre-seed	Dedicated early-stage focus
Seed VC	$1M–$5M	Seed–A	Board seats, operational support
VC	$5M–$50M	A–C	Institutional follow-on, brand
Corporate VC (CVC)	$5M–$50M	A–C	Strategic partnerships, market access
Growth PE	$50M+	B–D	Scale capital, operational expertise

---

Pitch Deck Structure (12 Slides)

Slide 1: Cover

• Company name, tagline, fundraise amount
• Contact info, date

Slide 2: Problem

• The specific pain, quantified if possible
• Who suffers from it and how badly
• Why now (timing is relevant)

Slide 3: Solution

• Your product/approach in 1-2 sentences
• Show, don't just tell (screenshot or demo link)

Slide 4: Market Size

• TAM / SAM / SOM with source
• Bottom-up preferred over top-down
• Market growth rate

Slide 5: Product

• How it works (3-5 steps or screenshots)
• Key differentiating features
• Technical moat if applicable

Slide 6: Traction

• Revenue, ARR, GMV, users — whatever is most impressive
• Growth rate (MoM or YoY)
• Key logos/customers

Slide 7: Business Model

• How you charge
• Unit economics (LTV, CAC, payback period)
• Gross margin

Slide 8: Go-to-Market

• Customer acquisition strategy (channels)
• Sales motion (PLG, inside sales, enterprise)
• Distribution advantages

Slide 9: Competition

• Honest competitive map
• Your differentiation clearly stated
• Why you win

Slide 10: Team

• Founders + key hires
• Relevant experience and domain expertise
• Advisors if notable

Slide 11: Financials

• 3-year projections (P&L)
• Current burn rate and runway
• Key assumptions

Slide 12: The Ask

• Amount raising
• Use of funds (specific allocation)
• Milestones this round enables

---

Narrative Building

The Founder Story Arc (for pitch meetings):

1. Origin: Why do you care about this problem personally?
2. Discovery: What did you learn that convinced you this is a real problem?
3. Solution: Why this approach vs. alternatives?
4. Traction: What proof do you have it works?
5. Vision: Where does this go in 10 years?

The "Why Now" Frame:

• Technology shift that makes this possible
• Regulatory change that created the market
• Consumer behavior shift that opened the window
• Market timing (reference comparable waves: "like X did for Y")

---

Investor Targeting

Build Your Target List

1. Filter by stage + sector + check size (use Crunchbase, Pitchbook)
2. Identify firms with portfolio overlap (direct comp = pass; adjacent = good)
3. Map connections to specific partners (not just firms)
4. Tier: A-list (dream investors), B-list (good fits), C-list (backup)

Warm vs. Cold Introductions

• Warm intro: Portfolio founder → VC partner (highest conversion)
• Network intro: Mutual connection → VC (second best)
• Cold outreach: Low conversion but still worth doing for strong signals
• Template cold email: 4 sentences max — what you do, key metric, why them, ask for 30 min

Process Management

• Run a parallel process (meet 20-40 investors simultaneously)
• Create FOMO by having competing term sheets
• Never fundraise for more than 4-6 weeks without a reset

---

CRM for Fundraising

Track every investor contact in a simple pipeline:

Columns: Name | Firm | Stage | Status | Last Contact | Next Step | Notes
Status:  Identified → Intro Sent → First Meeting → Deep Dive → Term Sheet → Closed

Update daily. Send weekly summary to co-founder.

---

Data Room Contents

Tier 1 (Share early)

• Pitch deck
• One-pager / executive summary
• Cap table (high level)

Tier 2 (Share after interest confirmed)

• Detailed financial model (P&L, balance sheet, cash flow)
• Product roadmap
• Customer list + reference contacts
• Team bios

Tier 3 (Share after term sheet)

• Certificate of incorporation + amendments
• Board minutes (last 2 years)
• IP assignments + patent filings
• Employee agreements + stock option plan
• Material contracts (customer, vendor, partnerships)
• Audit reports or reviewed financials

---

Term Sheet Key Terms

Term	What to Negotiate
Pre-money valuation	Higher is better; compare to comparables
Option pool	Negotiated pre or post-money; post-money is founder-dilutive
Liquidation preference	1x non-participating preferred is standard; avoid 2x+
Anti-dilution	Broad-based weighted average vs. full ratchet (avoid full ratchet)
Pro-rata rights	Future participation rights; standard for lead investors
Board composition	Maintain founder majority at seed; negotiate at A
Protective provisions	Investor veto on key decisions; keep list narrow
Information rights	Monthly financials, annual audit; standard

---

Due Diligence Preparation

Common DD Areas

1. Technical: Code quality, architecture, security, IP ownership
2. Commercial: Customer contracts, pipeline validity, churn analysis
3. Financial: Revenue recognition, burn accuracy, unit economics
4. Legal: IP assignment, litigation, regulatory exposure
5. Team: Reference checks on founders + key hires

How to Run Clean DD

• Organize data room before DD starts
• Designate one founder as DD coordinator
• Be proactive: flag known issues before they're discovered
• Respond within 24 hours to all requests
• Avoid surprises — they kill deals

---

Fundraising Checklist

Before launching

• Deck is final and reviewed by advisors
• Data room Tier 1 ready
• Target list of 40+ investors built and prioritized
• Warm intro paths mapped for top 15
• Financial model stress-tested

During process

• Weekly investor pipeline review
• Follow-up within 24h of every meeting
• Proactively share positive news (customer wins, metrics)
• Maintain momentum — set deadlines for term sheet decisions