There’s so much in fundraising that you cannot control. Focus on what you can control and it will help what you can’t control fall into place.

By making fundraising into a game, you can change your mindset around it.

Advice to founders to avoid time-wasting VCs: ask in the first call if a fund is actively investing.

A year after the boom-times, raising another funding round was a different story.

Unsure of whether or not he wanted to raise, Alex found himself with term sheets for both venture funding and an acquisition in mid 2021.

I didn’t have time to make a short deck, so I made a long one instead.

I didn’t have time to make a short deck, so I made a long one instead.

Consistently sending investor updates maintains awareness, opens opportunities for serendipitous introductions, and demonstrates transparency about the company’s progress and challenges.

Follow more of Allyson’s writing on the VC Minute Substack: https://vcminute.substack.com/

Focusing on a well-defined target customer profile is crucial for rapid growth and investor confidence.

Follow more of Allyson’s writing on VC Minute Substack: https://vcminute.substack.com/

The longer an investor has been around, the more likely they’ve seen someone attempting to solve the same problem you’re tackling. Convince them “why now” to get their attention.

Read more of Allyson’s work on our Substack: https://vcminute.substack.com/

Ever wonder why so few funds lead? There are real risks for a small fund.

I made a critical mistake by underestimating the importance of momentum.

Coming back around to the first lesson, the relationship between the founder and lead VC is the most important part of the whole process.

Clearly define the depth of legal scrutiny required on each issue to streamline the process.

This past December, SpringTime Ventures led a complicated priced equity round. It was the first round that I ever led and I learned a ton of lessons. The first two are that the relationship between the lead VC and the founder is the single most important thing. Second, have great lawyers who know the unknowns.

“Knowing that it is supposed to be hard is oddly freeing because it kind of alleviates that feeling of, oh, so and so makes it look so easy.”

The best fundraisers run a process. It’s no surprise that Liz has a rigorous for building and executing her fundraise.

Your pitch deck should be able to tell the story without voiceover. VCs are going to send it around externally and internally at a fund. Everyone needs to understand it without you presenting it.

To grow your skill in fundraising, master these three pitches: elevator pitch, the hero story, and your fit in greater market.

Liz believes that fundraising is not “on your to do list” but a core skill of a startup CEO, a deeply integrated part of your job.

This is probably my favorite startup maxim of all. It ties in with the Lean Startup Methodology, and is core to figuring out what you should be building and for whom.

The last episode of ABF. I promise. Maybe. But we’re definitely missing the founder’s perspective on this one, which is why I was glad to have Liz Giorgi’s input.

What’s really at the core of the “lines, not dots” maxim? Relationships.

Mark Suster’s classic post: Invest in Lines, Not Dots.

ABF: Always Be Fundraising. Should you really always be fundraising? Here are some tips on how to evaluate if this is right for you.

This week I’m covering startup maxims—tthose little phrases we all repeat to each other as common wisdom but may or may not be true, helpful, or relevant.

Today’s maxim: “Ask for money, get advice. Ask for advice, get money.”

Just as the purpose of the deck is not to get a check, it’s to get the first meeting. The purpose of the first meeting is…

A VC’s job is to say “no.” Now knowing that, how do you adjust your approach?

If you aren’t getting positive feedback from the market, don’t start adding things. Strip the product down to its core basic value prop.

Founders are efficiency-seeking missiles, which is what compels them to start businesses, but it’s a double-edged sword.

The CEO is responsible for three things: communicate the vision, hire great people, and don’t run out of money. But it all boils down to just one thing.

“This will not be your last startup.”

My friend Eric is a very successful startup founder who has been a CEO coach for the last decade. When founders come to him to ask if they should shut down their startup, he runs this process with them.

There are ways to shut down: The Ghost, The Bonfire, The Refund. But there’s also a great way to sell your startup. That advice is not mine to share, so go read this presentation by Geoff Lewis: The Terminal Plan

This week, we’re covering an important but difficult topic: shutting down your startup. If you’re asking yourself the question, you may already have the answer. And your investors may have already written your company down.

When a start-up comes into my inbox cold or through another investor, there are really only two things I’m trying to figure out: 1) Is this for me? 2) Is this interesting?

Allyson joins us to share her insights on providing specificity to the problem being solved. A founder has to be able to convey the severity of the problem and the specific upside to solving it. Without both, investors know customers just won’t buy.

Wrapping this up, I’ve been watching the “Follow-On Death Spiral” for the last year. It’s not all bad news through.

The time between startup fundraises has grown significantly. Additionally, the time between venture fund vintages has also grown, resulting in a slowdown of capital deployment. All while venture funds buoy the healthy companies in their portfolio with follow-on capital.

Over the next few days we’re going to dive into why follow-on investment is the most important thing for Seed startups. Today, a quick background on the lengthening of the Seed Phase and why Series A raised the bar.

Maybe a founder could explain to me why you would not follow up with investors that opened your deck on DocSend?

Clear communication is crucial for startup CEOs to sell their vision effectively to investors, customers, and employees. SpringTime partner, Allyson Plosko, shares why Simplicity is Genius.

We met six months ago for 30 minutes. It’s been 260,000 minutes since we last communicated. Remind me, what does your startup do?

Stay Top of Mind: Learn why regular updates are crucial for startup founders to maintain investor interest and support, especially during fundraising rounds.

Welcome back to another season of VC Minute! We are pleased to introduce our sponsor, AVL Growth Partners. And I talk (briefly) about the #1 thing you should be asking Seed Phase investors right now.

Founders should look beyond dilution in term sheets, focusing on board configuration’s significance and understanding the option pool’s impact. AJ offers words of encouragement, emphasizing resilience and daily learning for success in the competitive market.

AJ provides valuable insights on term sheet structures, evolving clauses, and understanding investor motivations. He offers practical advice on managing tight decision timelines and creating negotiation urgency.

Discover the key questions founders should ask during partner meetings and initial discussions in this insightful episode. AJ encourages founders to be inquisitive about how funds operate and make investment decisions.

AJ outlines his proven approach to fundraising. He stresses the significance of tapping into your network, constructing a narrative-driven pitch deck, and carefully selecting the right partner for your business.

AJ Bruno, QuotaPath’s CEO has raised $70 million for QuotaPath and had a successful sale of TrendKite for $225 million, after multiple rounds of funding. He’s also a father of three and a pilot who does not like the idea of building the plane while flying it.

How Glade Optics organically attracted seasoned operators as investors through a meticulously planned reputation-building strategy

The hidden costs of fee-based lenders and why Glade Optics went with GCVF for better deal terms and invaluable business insights

Navigating the emotional rollercoaster of early struggles and the rewards of reaching a sustainable revenue level

Why Glade Optics chose non-dilutive funding: the dual benefits of protecting equity and gaining mentors

Curt Nichols of Glade Optics shares his journey from bootstrapping with credit cards to scaling a high-seven-figure business in ski gear.

Fractional talent is a great way to get experienced team members on a part-time basis to augment your full-time staff in a cost-efficient way.

Matt literally wrote the book on startup boards. Heed his advice and find the best possible board members, keeping a balance between independents and investors.

Start your hiring processes while you’re fundraising so you can hire as soon as you raise. Otherwise, you waste valuable months.

The next two post-funding mistakes are over-spending and not forecasting cash. Cash is king!

There are three post-funding mistakes Matt regularly sees from founders. The first is under-reporting.

While funding is down, it’s down less at Seed. Angel investing is down, but it’s likely leveled out and will hold steady. There is still a plethora of capital available, and there are incredible tools to start businesses using low/no-code. There’s never been a better time to start a company.

Please listen to Peter’s message about option exercise window. Personally, I agree with him that exercise windows should be longer for employees. The 90-day industry standard is just an arbitrary number.

As fundraising constricts, investor-friendly terms come out. Understand the effect these terms have on you and your company, as well as the effects of stacking SAFEs.

As fundraising constricts, investor-friendly terms come out. Understand the effect these terms have on you and your company, as well as the effects of stacking SAFEs.

Founders, whatever you think it’s going to take you to raise this funding, it’s probably going to take longer. So, begin those conversations earlier than you think you need to.

Founders are always going to add value, no matter how big or small the check size is.

Rescripted has over 60 Angels on its cap table. How did they do it? Networking “like a crazy person.”

One of the best pieces of advice Abby got: seriously evaluate if your business actually needs venture capital.

Your team is also watching your company valuation.

Do you want industry expertise or operational experience from investors? Write out what you want before you start fundraising.

Personalized, forwardable emails that your connections can send along will unlock doors to new investors.

Where are you in the process? What’s your valuation expectation? Abby provides guidance on answering both of these trick questions.

Watch out for these VC “trick questions.” How you answer will impact how far you get in their process.

Staying top-of-mind with investors bends recency bias in your favor. Here are four ideas.

Staying top-of-mind with investors bends recency bias in your favor. Here are four ideas.

When a venture fund is asking for “Tuesday Expenses” it’s because someone in the firm has direct experience with that, whether good or bad.

VC’s are pattern matching all the time and recency bias can really put its thumb on the scales when it comes to decision making. Do you best to understand the patterns, especially the recent ones.

When founders ask me whether they should be targeting pre-seed or seed, I have three clarifying questions.

It all comes down to people.

If you don’t have a network of investors, start building that network now, before you need to fundraise.

So much of fundraising can be made easier by some advance work. One of the critical pieces are the follow up materials.

Your fundraising story will evolve as you continue to pitch. Keep checking in to ensure your story is still aligned with your mission and values.

“Fundraising Friends” is a great way to get unfiltered advice throughout your fundraise process. Hear how Neha did it.

Use Time Blocking to create space between pitching investors and working with your team or customers.

Pre-Seed fundraising allows a founder to live inside the vision of their business.

People often think of angel investors as only friends and family. But they could also be anyone you’ve had a business relationship with in the past.