23. Socialize
• Prioritize sequence
• Find strongest connections to 30+ targets
• Tactics: lead gen, cold calling, warm intros
• Network over 2-3 months
24. Don’t ask for money!
Improves hit rate Creates data points Doesn’t start the clock
“Who else should I talk to?”
“I’m not ready to raise”
“Who would be helpful?”
26. Go for it! Create FOMO
• Approach your top candidates at the same time
• Decide whether to tell investors about each other
• Land anchor investor as the first domino
• Use triggering events to get or improve term sheets
“I’m closing a round”
28. • Board seat or 2
• Option pool
• Liquidation preference
• Control over sale, new options
• Debt that becomes preferred equity
when you raise it
• No valuation, but the “cap” is a
ceiling
• Interest accrues, rate <10%
• Conversion discount
Equity
29. • Not done until money is in
the bank
Key terms
❑ Board composition
❑ Option pool
❑ Voting rights
❑ Founder vesting
❑ Change of control
❑ Redemption rights
❑ Information rights
❑ Anti-dilution
31. Valuation & Dilution
37%
See ownyourventure.com
See dlopuch.github.io/venture-dealr
Raise $1M on $5M pre
34%
Raise $1.5M on $5M pre
33%
Raise $1M on $3M pre
Dilution: what’s your end stake?
Valuation ($M)
Seed A B
$15
$6
$1
$30
$12
$5
32. How long does it take?
• Longer than you expect
• 3-6 months
• Speed limited by access to investors
• Your ability to find them
• Calendar availability (surprisingly hard)
How soon to start, how long it takes,
general timeline you can expect, how to
reduce time between the initial outreach
and closing a deal?
33. Choose your investors carefully
What characteristics to look for in a
venture partner?
44. Typical Parts
Overview Problem Solution
Market
Opportunity
Go-to-Market Traction
Revenue &
Business Model
Team
Competitive
Landscape
Financial
Projections
Ask & Use of
Proceeds
Conclusion