Some thoughts for founders raising that I notice get you funds raised fast
(mainly for seed/series A):
1. Valuation: Work out what you'll do with the money and that'll give you the
amount you're raising. Make that 15-20% of the post-money and that gives you
your "going-out-to-market" valuation. You may get push back on this so be aware
of that. The amount you need is more important than your valuation though.
2. Get some soft commits (ideally term sheets) before you actively go out to a
bunch of VCs at the same time. This creates the right pacing dynamics you want.
3. Be very clear what you want from VCs - networks, overseas connections,
technical expertise/experience etc - and quiz VCs around that (politely).
They're not doing you a favour, you need to believe it is more equal than that.
4. Get warm intros if you can. It just helps.
5. Time your raise at the right time - when you are super strong in negotiation
position. Month-on-month metrics look good, big contracts, 6m+ runway, macro
events.
Any others I've missed?
Posted by Ibrahim Khan on LinkedIn
link: linkedin.com/in/mibrahimkhan
(mainly for seed/series A):
1. Valuation: Work out what you'll do with the money and that'll give you the
amount you're raising. Make that 15-20% of the post-money and that gives you
your "going-out-to-market" valuation. You may get push back on this so be aware
of that. The amount you need is more important than your valuation though.
2. Get some soft commits (ideally term sheets) before you actively go out to a
bunch of VCs at the same time. This creates the right pacing dynamics you want.
3. Be very clear what you want from VCs - networks, overseas connections,
technical expertise/experience etc - and quiz VCs around that (politely).
They're not doing you a favour, you need to believe it is more equal than that.
4. Get warm intros if you can. It just helps.
5. Time your raise at the right time - when you are super strong in negotiation
position. Month-on-month metrics look good, big contracts, 6m+ runway, macro
events.
Any others I've missed?
Posted by Ibrahim Khan on LinkedIn
link: linkedin.com/in/mibrahimkhan