The (VC) Game
This document outlines 9 steps to raise money from venture capitalists (VCs). The steps are: 1) Select a target VC firm that invests in your area and stage. 2) Approach the VC and open with a compelling subject line and well-prepared pitch materials. 3) Demonstrate your company's value through a precise deck outlining your financial plan and early traction. 4) Manage investor expectations by presenting ambitious but realistic projections. 5) Meet with the VC in-person and come prepared to discuss your business. 6) Address any remaining questions or concerns from the VC and provide additional supporting materials or references. 7) Solicit a decision deadline to increase pressure while maintaining other funding options. 8) Get the lead investor
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The (VC) Game
- 1. How to Raise Money in 9 Easy Steps VC Nicolas Wittenborn Point Nine Capital
- 2. About me I blog (too little) at heyni.co and tweet (too much) @ncsh Associate at Berlin based early-stage VC Point Nine
- 3. Get familiar with potential investors Make sure they are investing in your area And that it’s the right stage Step 1: Select a target
- 4. Make sure there is a fit! Not every VC invests in everything Step 1: Select a target (Not the typical VCs)
- 5. Find some context Make subject line & intro count Have all material at hand Step 2: Approach & Open
- 6. Don’t ‘shotgun’ your pitch Your potential investor wants to feel special ;) Step 2: Approach & Open
- 7. Precise Deck Financial Plan First Traction Step 3: Demonstrate Value
- 8. Don’t overcomplicate it The material should be concise and easy to understand Step 3: Demonstrate Value
- 9. BUT don’t make it too simple either Step 3: Demonstrate Value
- 10. Be Ambitious But not overconfident Or unrealistic Step 4: Manage Expectations
- 11. Step 4: Manage Expectations Looks good but won’t happen
- 12. Ask for a ‘coffee meeting’ Book a nice hotel, buy flowers & champagne Step 5: Extract to a seduction location
- 13. Ask for a ‘coffee meeting’ Book nice hotel, buy flowers & champagne Step 5: Extract to a seduction location Wait, this was for the ‘other’ Game… … let’s move on to the next step
- 14. Step 6: Make a physical connection Bring your co-founders Be on time & prepared for a discussion Have some slides as backup
- 15. Step 6: Make a physical connection Don’t be a ‘ballhog’ Let your team chime in
- 16. Identify last question marks Provide missing data (incl. sources) Set up reference calls Step 7: Disarm the obstacles
- 17. Step 7: Disarm the obstacles Don’t go on vacation during fundraising Why would you do that?
- 18. Solicit a decision deadline Communicate that there are other options on the table Update on major developments (numbers, deals, hires) Step 8: Pump Buying Temperature
- 19. Don’t name drop (or worse, lie) Avoid an ‘investor cartel’ forming behind your back Step 8: Pump Buying Temperature
- 20. Get lead investor to sign a term sheet Let potential co-investors and/or lemmings know Close the round & get back to business Step 9: Blast Last-Minute Resistance
- 21. Step 9: Blast Last-Minute Resistance A handshake is not a contract (unfortunately) Keep all options open until the deal is signed
- 22. Ready to make it rain?! Send your pitch to nicolas@pointninecap.com (pls don’t try #5) Or snapchat your Executive Summary to nc5h (just kidding, but I would be impressed)
- 23. Follow Point Nine on Twitter Sign up for our monthly newsletter Send us your pitches Thanks! :)