- The Deal Journey
- Structuration of fundraising
- Should I use a fundraiser ?
- Prepare yourself
- Step 1 : Ask yourself if you REALLY have a good reason to raise
- Step 2 : Build your fund wish list
- Step 3 : Identify the right contact in each fund
- Step 4 : Build a stunning pitch
- Step 5 : Build a robust financial model
- Step 6 : Run the show !
The Deal Journey
Contacting VCs is like B2B Sales, it's timed and goes through a specific process during which you've to find and convince your champion (the person who will advocate your deal within the investors team). In order to help this person to convince the team, you have to feed your champion with good enough content.
Structuration of fundraising
Should I use a fundraiser ?
Pros
- Know the market : who is looking for what, the good contact point ...
- Help you to build a pitch in the market
- Management of the fundraising process
- Intimate relationship with VCs
- Good at creating a FOMO effect
Cons
- Expensive (average 5% of the fundraising)
- Some VCs consider using a fundraiser is a bad sign
Prepare yourself
Step 1 : Ask yourself if you REALLY have a good reason to raise
Fundraising is highly time consuming and have an impact on your business. If you don’t have a good chance to succeed, it may finish in a disaster.
Step 2 : Build your fund wish list
As for B2B Sales, all VCs are not eating your sector / business model / ... Databases are really useful to identify which funds are interested by your business. Here are criterias you have to look to :
- Investment stage
- Industry focus Maybe fund-specific or investor specific within the VC fund
- Geographic areas of investment For example, some US VC wants to invest part of their funds in Europe.
- Previous notable investments It could be a good way to know more about the industries / businesses in which the team invest in. Also, it's good to know that a VC fund will NOT invest in a company too close to one of its portfolio companies in terms of value proposition.
Step 3 : Identify the right contact in each fund
Visit fund website and linkedIn to know the people and their track record.
Step 4 : Build a stunning pitch
Both your deck and pitch are key in your fundraising process. Nothing should be left to chance.
To help you build the most stunning pitch, we've something for you ! ➜
Step 5 : Build a robust financial model
To help you build the most robust financial model, check out our financial document templates we've made for you ! ➜
Step 6 : Run the show !
Follow contact points and conversion in a CRM funnel – You are in a funnel.
To help you following your contacts, check out the Log Fundraising template we've made for you ! ➜
How much time do you need to anticipate your fundraising? Find a great planning from YC here 👉