Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Judy Robinettamazon.com
Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Anyone founding a company who hasn’t quit their day job to do so is a “wantrepreneur,” not an entrepreneur. And investors who see that you have everything at stake in this company usually believe that you will do everything it takes to make it a success.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
You need a plan for connecting and adding value to your network regularly, to create a connection based on mutual support, respect, and liking. And whenever you encounter someone new, keep this thought in mind: “How can I help this person today?”
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
But ultimately I discovered that it’s impossible to wear every hat: I had to hire a team to help me realize my vision. For your company to grow, you too will need to assemble a team of employees who will provide the skills to execute your business plan. Recruiting employees also shows preliminary viability to seed-stage investors, proving that you’
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On the other hand, you don’t want too high a valuation either. An overly high early valuation can cause a startup to run the risk of a “down round”—a later round of funding with a valuation below the previous figure. (Investors want to see valuations go up between rounds, as this indicates the startup is finding its feet and starting to perform. Ri
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Create a monthly investor mailing list and send them information on your progress; you might be surprised to find that they reach out to you in the future.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
First, founders must be leaders.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
That requires you to have a clear picture of where you are today, before any additional funding. You must know (1) your current cash burn rate, and (2) your startup’s capital structure, which lays out the equity and debt you have used to build and run the business so far. You also should have (3) a capitalization table, or cap table, so you can see
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Your competition and your sustainable competitive advantage. • An overview of your business and its management team. Provide a synopsis of your business model and show pricing and margins of your product or service. Describe your team and why it will make this business successful. • Your business goals for the next one, three, and five years. Inclu
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To answer all these questions successfully and get to the “second date,” your pitch needs to be a combination of (1) a clear business plan as outlined in your pitch deck, wrapped in (2) a compelling presentation filled with interesting stories instead of dry facts, (3) delivered by you with confidence, passion, clarity—and brevity.