7. Fundraising Deep Dive

1. THE FUNDRAISING PROCESS (NUMBERS) (3:43)

Funnel Category
Number
% Dropoff
% From Top
Top of funnel
150
–
–
In-person meetings
50
33%
33%

Second meetings
20
40%
13%

Diligence
10
50%
6.7%

Term sheets & offers
3
30%
2%

2. FINDING INVESTORS (16:40)
Target a lead
Find Investors: AngelList
Find Investors: Signal by NFX, Crunchbase
Investors to avoid

3. THE PITCH DECK (31:30)
Send a teaser deck and a link
Tell a story
Pay for excellent design

4. THE FIRST MEETING (46:16)
You’re in charge
Set the agenda
Prepare questions
Nail down action items

5. AFTER THE MEETING (56:12)
Send FAQ
Get past associates
No response does not mean no
Do not request an intro from an investor who passes

6. NEGOTIATING A TERM SHEET (1:05:17)
Take a holistic approach

Five most common terms
Pre-money valuation, Liquidation preference, Board, Employee option pool, and Pro rata.

Send to advisors and legal counsel

Shop your term sheet (before signing)

7. DUE DILIGENCE (1:14:47)
Expected timeline: Minimum 3 weeks
Create a data room
Customer references
Common red flags