January 2017: I have updated this publication, which is now available on my website
A Write-Up of Thoughts and Observations About Early Funding for SaaS Startups in Europe
In this document I have put together some of my thoughts and recent observations related to fundraising with early stage ( Seed ) SaaS companies. However, I am - by no means - trying to create another fundraising bible or make anyone believe that I found the holy grail of Seed stage funding.
As I am working with a number of maturing SaaS companies ( see http://www.linkedin.com/in/abruehl ) I had the opportunity to be involved in many fundraising processes along the different company building steps, all the way from idea to 1st external money to Seed Funding to Series A and sometimes Series B. Many founders have asked me about those experiences and I thought it would be good to share some my observations and experience with you.
In this write up I am focusing on very early stage financing, i.e. Seed Funding for European SaaS startups.
Phase 1 -- The very first phase will most likely be financed by your own and your closest friend's and your family. Mainly people who you know well and who know you well.
Phase 2 -- A Seed I round of financing to have the funds to pay for the development of a first SaaS product, which you will be able to demonstrate to early potential customers and partners.
Phase 3 -- Once a first demonstrable prototype or beta product is available, you may most likely go for a Seed II round to finance another 12 - 18 months of building a sustainable business, i.e. winning paying customers, creating KPIs which show that the business can be scaled with additional money, which you may raise in a subsequent Series A financing round.
If you have any further questions after you screened the attached article, please don't hesitate to contact me via LinkedIn or email.