Seth Profile picture
16 Sep, 16 tweets, 3 min read
A+ info from @lpolovets today on @immad / @BankMercury's webinar on seed stage funding.

In case you missed it, here's a recap:
Contents:

- Getting the meeting
- You got a meeting, now what?
- After the pitch
- Seed Valuations
- Exits
- Remote teams
- Portfolio conflicts
- Vison/plan
- Founder flags
- After getting the investment
- Founder compensation
- Pandemic centric ideas
- Prospecting investors
Getting the meeting:

- Intros from network are important

- Cold outreach works too, but make sure to demonstrate why your company is among the 1-3% worthy of more time

- Avoid superficial personalization
You got a meeting, now what?

- Succinct pitches win (1/3 of meeting on the pitch, rest for questions)

- Consider leading with a demo in the pitch. It may come across better over a virtual pitch

- Don't over or under exaggerate

- Send deck before

- Be confident & energetic
After the pitch:

- Follow-ups are worthwhile but remember not everyone responds

- Check-in after a few days, then after a few more, then write it off and move on
On seed valuations:

- Understand that investors pattern match to the other deals they see

- Aim to raise enough for next 18-24 months + ~ 20%

- Avoid giving valuations, set a raise amount, and let the market set the terms
On seed valuations (cont'd):

- Work backward from Series A. What will those investors want to see? How much $$ will it take to get there?

- Remember that investors contend with fund sizes. Any investment should be able to return the fund.
On exits:

- Exits follow a bell curve: not good, okay, and good.

- Unaligned when founder is leaving a clear path to higher val in 5 years for an exit now

- Otherwise, if founder gave it his/her all an exit is acceptable
On remote teams:

- Care less and less about them, but depends on company and product

- It may be hard for investor to get you a VP candidate outside investor's area.

- For int'l teams, the main issue is in investor market knowledge not team location
On portfolio conflicts:

- Hard to avoid across the board, but try to, depending on company size

- Check on both sides for comfort level if there would be a conflict
On vision/plan:

- Important to show 10 yr vision and 2 yr plan

- The goal is to show a clear trajectory to get to the 10 yr vision

- Be realistic though. Ex: Robinhood -> large market, no one liked fees; Superhuman -> smaller market, 1B gmail users not going to all use it
On founder flags:

- Red flags = showstoppers: founder has a bad rep or untrustworthy

- Yellow flags = workable: little industry or leadership experience

- Green flags: founder-market fit, charisma, ability to sell, thoughtful, confident, high grit
After getting the investment:

- Regular catch up calls with founders (biweekly/monthly)

- Discuss biz performance, problems, make intros, etc.

- Founders should grow headcount slowly and be frugal
On founder compensation:

- Pay yourself at seed stage, cover expenses comfortably (20-100K not bad)

- Series A +, founders should get market salary

- Take money off the table at Series A + not bad, want founder comfortable and incentivized
On pandemic centric ideas:

- Need to assess temporary vs. long-term shifts in consumer behavior

- Focus on barriers to entry

- Ex: Ordering groceries online -> people didn't try, now won't go back. Remote learning -> prob won't last
On prospecting investors:

- Research and personalize

- Framework: Spend 15 minutes on 15 people, see how much you can do, and send emails. Rinse and repeat.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Seth

Seth Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!