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I just raised my first round of
capital, now what do I do?
Raising your first round is a significant
accomplishment for entrepreneurs, but…
2
Confidential
…it’s just the beginning!
U...
Tech startups are typically dependent on
outside financing to grow
3
Confidential
ScaleLaunch
Early Traction Product /
Mark...
Planning for your next fundraising
4
Confidential
Finding the right VC
• #2 reason startups fail – they run out of
money
• ...
Talking to next round investors
5
Confidential
• You probably heard investors say “I’m interested in the business, but
it’s...
321
Creating your next round pitch deck
6
Confidential
The deck should:
• Incorporate feedback
• Be realistic and achievabl...
Example next round pitch deck
7
Confidential
Traction Product
Team Other
0
2
4
6
8
10
12
14
16
0
10
20
30
40
50
60
70
Jan F...
Creating a resource plan
8
Confidential
• The value of the deck creation is to give you an end goal to work
back from (e.g....
Building relationships with potential
future investors
9
Confidential
Current investors New investors
Two kinds of potentia...
Thanks & questions?
10
Confidential
Thank you!
Please reach out with any questions
greg@hydeparkvp.com
Twitter: @greg_barnes
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I just raised my first round of capital, now what?

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Thoughts on how Seed stage entrepreneurs can prepare for raising their Series A round of financing

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I just raised my first round of capital, now what?

  1. 1. I just raised my first round of capital, now what do I do?
  2. 2. Raising your first round is a significant accomplishment for entrepreneurs, but… 2 Confidential …it’s just the beginning! Understanding and deliberately working towards next financing round milestones is essential to thriving in the early stages of business building As soon as you close your Seed round, there are a few key activities you can do to set yourself up for success in your next fundraise - Set clear, measurable, resource appropriate milestones to achieve - Build / maintain relationships with potential future investors
  3. 3. Tech startups are typically dependent on outside financing to grow 3 Confidential ScaleLaunch Early Traction Product / Market Fit • Founding team formed • Concept defined • MVP developed & launched • Tweak value prop • Acquire paying customers • Refine core product & features • Key hires • Go-to-market strategy refined • Huge customer growth • Customer acquisition efficient and repeatable • Processes implemented ExampleOperating Activities Ex. Financing Activities Friends & Family Seed Round Series A Series B The first thing you should do after raising capital…plan for your next fundraising Example early stage company lifecycle
  4. 4. Planning for your next fundraising 4 Confidential Finding the right VC • #2 reason startups fail – they run out of money • To prevent running out of money, need to raise more money or generate cash flow • To raise more money you need to be interesting to next round investors WHY plan for the next round right away Source: CB Insights survey To the be interesting to next round investors, you need to achieve milestones to meet their criteria HOW plan for the next round right away Talk to potential next round investors 2 Create your next round pitch deck 3 Create a resource plan to support the pitch deck 1
  5. 5. Talking to next round investors 5 Confidential • You probably heard investors say “I’m interested in the business, but it’s too early for us” • Those that were actually interested likely provided valuable feedback on what they’d like to see in the future • Investors will often also mention the stage of company they typically invest in e.g. from HPVP website “startups with $500K to $3M in revenue” While raising your first round After raising your first round • “Grab coffee” with potential future investors and say “I just raised my [F&F/Seed, etc.] round, and I think you’d be a great fit for my next round – what metrics do you look for in your investments?” Use these data points to create a hypothesis on milestones you need to achieve to raise your next round
  6. 6. 321 Creating your next round pitch deck 6 Confidential The deck should: • Incorporate feedback • Be realistic and achievable • Be focused on key milestones and metrics, related to: Traction (revenue, customers, growth, etc.) Product (launches, integrations, features, etc.) People (hire technical co-founder or VP of Sales) The deck should not: • Focus on things you can’t control (e.g. broad market shifts, legal changes, etc.)
  7. 7. Example next round pitch deck 7 Confidential Traction Product Team Other 0 2 4 6 8 10 12 14 16 0 10 20 30 40 50 60 70 Jan Feb Mar Apr May Jun Customers Sales 1 2 3 4 • Key metrics • Approvals needed • Etc. Mallorie Brodie Co-Founder,CEO Adam Speakman Engineering Lead Lauren Hasegawa Co-Founder,CRO Zak Thompson Web Lead Rebecca Thomson Test Engineer Laura Brodie Director of Marketing Alannah Bird Customer Exp. Manager Ben Porter Sr. BDR Haval Alarashi BDR Ryan Jannsen BDR Valerie Scharrer Operations Manager Jan Feb Mar Apr May Jun Version 1 Integration Feature Integration 2 Feature 2 Version 2 Today Future
  8. 8. Creating a resource plan 8 Confidential • The value of the deck creation is to give you an end goal to work back from (e.g. I want to launch v2 of the product, shift from founder sales to sales team, and have $50K MRR) • Those goals, along with the key constraints of money & time, provide the backbone for resource planning • Most effective resource plans (aka use of funds) are often detailed bottoms-up financial plans • The hard part though, is to be realistic about building a startup, key factors often overlooked: o Product delays o Employee onboarding/training/turnover o Salesperson ramp up o Sales process delays o Cash flow issues from customer payments o Time needed for future fundraising If you don’t know what assumptions to make, ask someone who does!
  9. 9. Building relationships with potential future investors 9 Confidential Current investors New investors Two kinds of potential future investors 21 • Should not be overlooked! • Valuable part of any future financing • Regular updates are important! o Key metrics o What’s going well o What’s not going well o How investors can help • An excited current investor is a great source of intros to future investors • Building relationships is key • Grab coffee & lay out your plan for the next round • Provide regular updates – show them you can do what you say you’ll do • Building relationships over time shortens the actual “fundraising process”
  10. 10. Thanks & questions? 10 Confidential Thank you! Please reach out with any questions greg@hydeparkvp.com Twitter: @greg_barnes

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