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What does it take to raise a round?

Lots of time & investor meetings.

.

time taken meetings with investors

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Here are some pointersto help speed you along.

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What’s inside:

Preparing the approach

Breaking down the pitch

The ask: VC funding

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Learning a few fundraising tips

raise money.

doesn’t mean you’ll be able to

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Preparing the

approach

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Step 1: Download our spreadsheet and follow along.

Step 2: Classify investors as leads & non-leads.

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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

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Pro-tip: intro sources matter less if you have…

or known investors already with you

an impressive pedigree

numbers up & to the right

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A PowerPoint for presentationsBackup slidesFinancial plansProduct roadmapExecutive summaryElevator pitch

Step 4: Get pre-pitch advice

from 1-2 VCs to test your materials.

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Step 5: meet all your potential lead investorsover a short period of time to build momentum.

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Momentum Will ideally help you get 2+ term sheetsat the

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same time.

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Wait, but what happens

in between?

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Get ready for

pitching

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There are plenty of great free resources aimed at startups writing a business plan or pitching VCs.

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But, there is still a major disconnect

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between how

entrepreneurspresent their plans…

and how VCs actually

.

-3vcpov.com

Breaking downthe pitch

-4

skip to slide 43

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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

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The problem

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The problem

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Do people care about this

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The

solution

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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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.0vcpov.com

Solve a real problem

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The team

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A-Team: balance & skills for the task at hand

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.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

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youstand out from the

competition. UYWXR_bc

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Show why

/5vcpov.com

Traction

/6vcpov.com

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It’s not all about

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Quality of growth

Scalability

Repeatability

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/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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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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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�

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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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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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Credits:

10vcpov.com