1.
Fundraising ABC’s
How to raise a seed round
D AV I D C H A N G
@ C H A N G D S
davidchang.me/startup-tips

2.
Fundraising
Basics
How to Raise
a Round
Pitch

3.
• Active VC List, DocSend
• Investors meeting during
COVID-19
• Plan for longer runway
• Valuations hit 20-30%

4.
Venture capital stages
Growth Equity
Early Stage
Angel
Friends & Family

5.
How the VC game works
Skewed return distribution
VCs must swing for the fences

6.
Raising a Round

7.
How Much to Raise
• Basic financial model of
cost drivers and revenue
• Forecast monthly for 2
years
• Fundraise rule of thumb:
12-18 months’ cash

8.
Use of Proceeds
• Build product
• Grow team
• Marketing
• Customer acquisition
• Working capital

9.
Milestones
See techcrunch.com/2015/06/24/running-out-of-money-isnt-a-milestone
Team
Product Development
Market Demand
Product / Market Fit
Business Model
Execution

10.
Fundraising
Basics
How to Raise
a Round
Pitch

11.
Aim at a
Tight
Target

12.
Target investors using 6 filters

13.
Stage

14.
Stage
Location

15.
Location
Stage
Industry

16.
Location
Stage
Industry
Business
Model

17.
Business
Model
Location
Stage
Industry
Thesis

18.
Thesis
Business
Model
Location
Stage
Industry
Social /
Trust

19.
Social /
Trust
Your ideal investor meets 6 filters
Thesis
Business
Model
Industry
Location
Stage

20.
Tools to build the pipeline

21.
bit.ly/boston-area-investors-firms
University Focused
Corporate VC
Angel Groups
Seed
Stage
Growth
Stage
Early
Stage
VC
Tech
VC
Healthcare, Biotech, Energy
Boston-area Investors

22.
B
Break
down
Barriers

23.
“Looking for feedback on the idea”
“Who’s knowledgeable in this space?”
“I’m not raising right now”
“If you want money, ask for advice…”

24.
Improves
hit rate by 10x
Doesn’t start
the clock
Creates trend
from data points
Why not just ask for money?

25.
Don’t make knee-jerk changes
Incorporate
feedback
Refine pitch
Spot consistent
themes

26.
When to stop fishing?

27.
C
Create
FOMO

28.
Land the anchor investor
“I’m closing a round”
“Can I hold a space for you?”

29.
Finish strong
Full throttle to avoid mid-flight stall
Leverage current investors to pull in new ones
“Oversubscribe” optics

30.
Aim at a tight target
Break down barriers
Create FOMO
The ABC’s

31.
Structure
Equity

32.
• 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

33.
• 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

34.
Seed A B
$15
$6
$1
$30
$12
$5
Valuation & Dilution
?
Dilution: what’s your end stake?
Valuation ($M)
?
Prep Target Socialize Ignite Close

35.
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
Prep Target Socialize Ignite Close

36.
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?

37.
Choose your investors carefully
What characteristics to look for in a
venture partner?

38.
1 Paragraph
1 Page
1 Deck
1 Follow-up Deck

39.
Adapt content to the venue
Home Office
Coffee Shop

40.
Don’t overreact to feedback
Incorporate feedback
Double down on consistent themes
Avoid whiplash changes

41.
Don’t be sloppy and miss details
Typoos
capitalization & punctuation,
Font & sizes
Alignment
Color
Design (icons, photography, clip art)

42.
Typical Parts
Intro Problem Solution
Market
Opportunity
Product
Go-to-
Market
Business
Model
Competition
Traction Team Ask Appendix

43.
nextviewventures.com/blog/free-startup-pitch-decks-template

44.
pillar.vc/playlist/templates/?category=fundraising

45.
docsend.com/view/imabk5rdkv6sd8hx
zoebarryceo.com

46.
beautiful.ai/presentations/startup-pitch-deck

47.
thenounproject.com

48.
For inspiration…
slidebean.com/template-category/startups
docsend.com/blog/pitch-deck-examples
medium.com/pitchdecks
visme.co/blog/best-pitch-decks
bestpitchdecks.com
businessinsider.com/pitch-deck-library-series-
a-funding-round-startup-pitch-decks-2019-8

49.
bit.ly/startresources
davidchang.me/startup-tips
Marketing
Press / Media
Freelancers
Agencies
National Tech Journalists
Boston Tech Journalists
Legal
Legal Templates
Accounting
Recruiters
Real Estate
Co-working
Brokers
Events
Event Spaces
Startup Events Listings
Startup Community Groups
Speakers/Mentors (WIP)
Boston Women Leaders
Investors
Guides
Lists
Materials / Templates
University Entrepreneurship Resources
Competitions
Student Groups
Startup Resources
General Guides
Development
Web Dev Shops
Mobile App Dev Shops
Tech Talent / Advisors
Mobile App Development Tools
Design / UX
Graphic Design Resources
Full-time
Freelancers
Agencies
Product
Pros
Emerging Stars

50.
Fundraising ABC’s
Q&A
D AV I D C H A N G
@ C H A N G D S
davidchang.me/startup-tips