206. Lessons Leading: Why Most Venture Funds Don’t Lead
Ever wonder why so few funds lead? There are real risks for a small fund.
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.
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