Source: Nilesh Balakrishnan, WaterBridge Ventures
So, you want to raise VC money?
Here are the pre-requisites:
It's a full-time job with highs & lows
Learn the art of storytelling, it's essential
Remember, money does matter
Look for VCs that can serve as long term partners
Know how much capital you need
Pitched to one, don't stop/wait, continue to pitch till you close the round
Know your funding needs
Determine how much you are raising as that affects who you approach, and the best way to do this is below:
Identify a north star metric - a key purpose/goal for fundraising
Set goalposts & target metrics to achieve (12-15 months)
Plan for 18-24 months out
Identify resources needed to achieve that goal
Work out burn & ideal runway
Avoid elaborate financial models, these are mere projections
Amount of raise dictates the likely investor, are they comfortable with that ticket size?
Less is more in the early stages
Knowing the type and stage of Investor you need is half the battle!
What might be impressive to one might turn off another!
Types of Funding Rounds for VCs:
Seed: Testing out an idea at a small scale (Up to $1 Mn)
Series A: Idea works but can it work at scale? ($3Mn-$5Mn)
Series B/C: Works @ scale but can it still make a profit while scaling? ($20Mn-$80Mn)
Prepare for a fundraise battle
The journey is challenging but with the proper preparation and resources, you can maximize your chances
A. Investment Deck
Cornerstone of any fundraise
Should be short & crisp
No more than 20 slides
Build a rapport, not a thesis
B Elevator Pitch
Perfect an intro paragraph
Ideal for emails / cold calls
Keep it short & succinct
C. Business Plan
Project your major expenses
Post realistic revenues
Outline major assumptions
D. MIS
Track your major KPIs
Keep data room ready