💰Founders raising a Series A: one of my port cos is also working on their A and I thought I'd share perspective + tips I'm passing on to them.
/1
At a Series A, investors are looking for a co w/product-market-fit + hockey stick growth that will quickly achieve unicorn status (≥$1B valuation). Financials are key!
/2
Tell the Story
🔮Vision, Mission: consider problem, solution, benefits
🗓Why does the world need your co today (vs before)? Consider: COVID/WFH, etc.
📈Show you’re in a well-defined market that’s growing.
/3
Confirm product-market fit
💬 Customer endorsements/referrals
📰 PR doesn’t hurt
/4
Show growing traction
💰Revenue + Margin
📈Growth Rate (eg., 10% MoM = 3x, 15% MoM = 5x growth)
/5
Show strong key metrics. Consider:
👛 Cash on hand
📉 Burn rate
💰MRR
💸 CAC
📈 CLTV
💯 NPS
/6
Point towards scalability
🤗 Is the demand there?
🧐Can you achieve scalability w/Series A capital?
/7
Share the numbers (big) vision
🤑 Demonstrate your interest in becoming a billion-dollar valued co
📈 If you’re not there yet, tell the story of how you’ll achieve $100M in revenue
/8
Show you’re building the right team
🤠Filling the gaps to take you to the next level
👋🏽Attracting the right people to hire
🌈Consider diversity
/9
Defend your competitive advantages
✨What are your sustainable differentiators? Consider Brand loyalty, IP, Scale, Locked-up Supply, Network Effect, Innovation, etc
💰Express how your co will provide the greatest returns for investors
/10
Show that Series A capital will make your company a rocket ship 🚀.
/11
VC Fundraising Tips
👋🏽 Build relationships
👁👄 👁 Give them FOMO
👩🏽🎤Build social proof through angels, influencers, top advisors, etc
/12
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.