road to success The funding round can be long and difficult.
From your first meeting with the VC to depositing the money in the bank, a seed round takes an average of 18.5 weeks. Within that time frame, you are opening your heart to multiple investors and ideally holding multiple meetings, either virtual or in person.
You are busy creating and proactively building your narrative (and pitch deck) and managing each of those meetings and necessary followups. Then, if things go well, you’re negotiating a term sheet and a final closing statement. All while running startup with the same intensity.
You gain an advantage by having transparency about how investors engage with your pitch deck.
So how do you prepare for this crucial stage in your company’s growth, navigate the challenges of a fundraising, and don’t let the process overwhelm you with the responsibility of still running your business? Although not every fundraising is the same, founders can use the experience of others to ensure that their fundraising efforts are efficient and, most importantly, successful.
This can be done both qualitatively and quantitatively. Tap your network to learn from both peers who have recently gone through the fundraising process, as well as from more experienced experts who can provide useful knowledge and perspective. And quantitatively, there’s a ton of data on the fundraising process that can take away the mystery and uncertainty for you as a founder. Having very clear data on where VCs focus their time on the pitch deck or in meetings will guide you to deliver a finely tuned pitch to the right investor.
This year has shown a growth in the fundraising landscape like we have never seen before. Records have been consistently broken in deal dollars, and there has been a steady increase in VC demand and startup supply since April 2020. Although the tide appears to be on the founders’ side, there are different investor expectations for each stage of funding, from pre-seed to funding. Series A and beyond.
As more founders pitch their startups, funding rounds are competitive, so you need to prepare accordingly. Below I’ll outline some of the essential steps each founder will take during their fundraising journey to approach them with proven and data-driven strategies.
perfect pitch deck
A good pitch deck is the key to opening the door to wealth. It’s the first impression you make on VC, and with them sprinting through the deck at record speed (2 minutes and 34 seconds per deck), you have to count. It needs to clearly communicate purpose and value, show that your company is a solid investment and that your idea is worth their money and time.
By analyzing the deck compilation and comparing it with the metrics, DocSend has found That startups that have successfully fundraised have similarities in their pitch decks. It can be broken down into different steps and helps you understand the order of your slides, which sections to include more detail, which sections will get the most attention and more.