I just finished fundraising for @sendwithloops ahead of YC’s demo day.
Here are the unfiltered lessons I learned about raising money for an early stage startup.
This is a series of notes and observations from dozens of calls with some of the best investors in the world.
Stagger your cap. This is a bit of a secret. I talked to a handful founders fundraising right now that didn’t even know this was an option.
Here’s how it works: 1. Start fundraising for a preseed/seed round at a certain cap, 10m-15m is pretty common with web2 B2B SaaS
2. You get a few awesome angels to buy in at that cap (more on that below) 3. Then you complete your “angel round” and move on to raising funds from traditional VC’s but at a higher cap.
By “staggering the cap”, we were able to take a similar amount of dilution, but raise more.