Learn from V7‘s experience of raising a $33M Series A, navigating dropped-out investors and market challenges. These insights guide startups to swift and effective fundraising strategies, ensuring a motivated team and a successful outcome.
Entering 2023, fundraising has become an uphill battle, and V7‘s Alberto Rizzoli (co-founder and CEO) and Bill Leaver (product manager) attest to the challenges faced by startups. In November 2022, V7 successfully secured a $33 million Series A from Radical Ventures and Temasek, a feat that was far from effortless.
Facing dropped-out investors and a market focusing on supporting existing portfolio companies over new ventures, their journey sheds light on crucial insights to master the fundraising game. Here are six key tips summarised, to ace your fundraise, ensuring a swift process that keeps your team motivated, according to the duo:
- Commence with Outreach: Initiate contact with 30-50 funds by crafting a compelling blurb for existing investors to make intros. Utilize cold outreach strategies, emphasizing the importance of succinct and persistent communication.
- Build a Deal Team: Assemble a deal team comprising key leaders for email communication, sales due diligence, finances, and customer references. Distributing responsibilities ensures efficient and quick responses.
- Investor Diligence in Early Calls: Use initial calls for mutual diligence. Inquire about the fund’s basics, their familiarity with your industry, backgrounds of the team, and seek references from adjacent portfolio companies.
- Utilize Pitch for Your Deck: Leverage tools like Pitch for your pitch deck, embedding videos, Looms, and interactive elements. This enhances the presentation, making your Series A fundraising more impactful.
- Organize Your Data Room: A well-organized data room expedites the due diligence process. Share detailed information on costs, revenue forecasts, and key figures to minimize clarification calls.
- Manage Investors Like a Sales Pipeline: Treat fundraising like sales, utilizing a CRM to coordinate pipeline stages. Screen leads, maintain detailed records, and manage investor relationships efficiently.
- Create FOMO with One Term Sheet: Generate a sense of urgency and competition by engaging multiple funds. Move swiftly in the early stages to build momentum and leverage your negotiating position.
In a challenging economic landscape, securing funding is tougher, but it’s essential to keep forging connections, telling your story, and adapting to evolving metrics. While the terrain has changed, opportunities for capital and support persist—be resilient, and seize them.
Source – Sifted
For more content from Faraday Partners, follow us on LinkedIn.
