3 ms·
Just a few thoughts from my experience of fundraising: > How much should we aim to raise and at what valuation? You don't generally get to pick your valuation
by slap_shot 4y ago
Just a few thoughts from my experience of fundraising:
> How much should we aim to raise and at what valuation?
You don't generally get to pick your valuation up front: you tell an investors how much you're raising and the lead investor prices the round based on deal heat and a bunch of other pseudoscience. If you have enough interest, i.e. competitive term sheets, you have leverage to negotiate the terms that dictate the valuation: % of ownership and amount of the raise.
wrt to the amount to raise, the classic advice is to figure out what your next milestone is and try to model what it will cost to get there and then raise it. The smarter move is to just find out up what's market for seed deals right now and ask for that.
> - How to show financial projections in a field that evolves at such a breakneck speed?
There are plenty of templates online that do this for you. IMHO, find someone who knows what they're doing and pay them a couple grand to do it well (there's a plethora of former bankers and consultants who will gladly do this). All models are wrong, but a model can quickly tell an investor you know how the game is played.
> Should we prioritize local (Europe, Switzerland) investors or North-American ones?
I'm in America and mostly pitched US base funds, but I did pitch a few funds outside of the US and don't think it was the worth the time. The US has the highest concentration of the the biggest, most prominent, best connected funds looking at the best deals - I'd just focus on them.