This document provides tips for startups fundraising from investors. It recommends getting introductions to investors, focusing pitches with less features and clear goals for initial meetings. Fundraising can take 6-12 months to plan for, and investors want to see traction. The document stresses building relationships over chasing money and advises showing commitment, keeping investors informed, and using networks to collaborate. Common mistakes include not researching competition adequately and trying to please all investors instead of building strong connections.

2. Private
Equity
Venture
Capital
Seed
FFF / Accelerators
More
$$$

3.  Angels
 VCs
 Crowdsourcing
 Other?

5.  GET AN INTRO. ALWAYS!
 No NDAs
 Elevator Pitch. Demo. Deck
 Less Features. More Focus
 What is the goal of the 1st meeting?

6.  Plan 1 year ahead
 Add a 30% buffer
 Fundraising will take 6-12 months
 Is bigger always better?

7.  Pre-money and Post-money
 It‟s an art. Try to turn it into a dog race
 Stock option pool (10-20%)
 Convertible debts (20% discount, caps)
 Exit considerations
 How much do investors expect to make?

8.  Don‟t waste much time negotiating
 Seedsummit standard terms
 Get to an “Yes” before you talk terms

9.  People give to people. Not to ideas,
companies or strategies.
 Fundraising is not about money. Money is
the means to an end.
 Traction matters.
 Honesty is the best policy.
 The mountain and Mohammed.

10.  Ask for money and you will get advice.
Ask for advice and you will get money.
 Raise money when you don‟t need it.
 Investors‟ herd mentality is notorious.
 Friend-making comes before fundraising.
Build relationships.

11.  Be „15 minutes ahead‟.
 Know your audience.
 Know whom to ask, how much to ask for,
and when.
 Successful fundraising involves storytelling
(with passion). Practice a lot
 Watch Shark Tank.

12.  Show commitment
 Keep us in the loop
 Use the network
 Collaborate
 Build a board

13.  Didn‟t research the competition
 The better mousetrap
 Painkillers versus vitamins
 The more features fallacy

14.  Things take longer than you expect
 Didn‟t take the money
 Chasing investors instead of befriending
investees
 Trying to win over everyone
 Fundraising is not (exactly) selling. Don‟t
oversell.

15.  Fundraising is hard
 Listen to investors
 Time is flying. Speed up
 Traction > Execution > Ideas