I literally couldn’t wait to break this down for everyone, because I kept getting questions about it. Here is my list, any VC’s please chime in and any founders feel free to ask questions! So here you go:
1. Set up your company, team, and product. People invest in businesses.
2. Put some skin in the game! Put your own money in or find family and friends who can help you.
3. Make it out of the “Idea Maze.” Google marc Andreessen Idea maze.
4. Research “how investors value pre-revenue companies.” Here are some ways: founding team, traction, market size, competition, market forces, comparables, growth, and engagement.
5. Research what “market terms” are for pre-seed through series A companies are: pre-seed (the new seed): 500k, used avg valuation 2-5m used to build team and prototype. Seed: $2m used to build product establish product-market fit and early revenue. Avg valuation 5.5m and avg size 1.5m. Series A (the new series B): 6-15m, avg valuation 16m, and round size $6m.
6. Understand how VC’s determine what size term sheets they submit: A. Small: experiment, like the concept but needs to be proven or B. Medium: I see a path to generating revenue over the next 12 months. But it’s early. C. Large: This is a hot deal! I need to win it!
7. Ask yourself: how many points of failure/uncertainty does my business have between now and 18months from now.
8. Research what an “investment roadshow” is. You will likely be on the road for weeks or months pitching the business. Founders will tell you they pitched over 500 times in one year.
9. Research your investor list: google “a list of fintech venture capital firms” if you are a fintech company. Or google “VC firms in LA” or “Chicago.” Add it to a google sheet with tracking info.
10. Google “12 KPIs you must know before pitching your startup.”
ASK ANY QUESTIONS BELOW!
Happy hunting 💰🏃🏾♂️🏃🏽♀️💨