Raising money from professional investors before your product is built, launched and generating revenue is far more difficult than when those things have already been accomplished.  This can result in…

Investors are often skeptical of claims made by startup founders.  Among the various types of claims that can be made, this especially relates to all forms of traction.  This article…

I often get asked how much revenue is needed to successfully raise a Series A.  I can tell the entrepreneur wants me to confirm what they might have read in…

I know, you just want me to show you the scorecard and associated secret formula investors use to decide a supposedly “fair” valuation for your company.  Unfortunately, you are only…

With as little as it costs to get a software startup off the ground these days, many entrepreneurs start off as what we call “bootstrappers” rather than fundraisers.  There’s nothing…

Not much different than the famous chasm described in Geoffrey Moore’s book “Crossing the Chasm”, funding your startup venture over time also has a chasm.  This fundraising chasm doesn’t trip…

When I ask entrepreneurs what their most valuable resource is, I ALWAYS get one of two responses: money (aka – funding, cash) or people.  And it’s hard to argue about…

Almost no investor wants to be the “first check written” for your round of funding.  This makes total sense if you think about it from their perspective.  If you don’t…

Here’s a scenario I commonly see.  A startup raises $1M in total seed funding to turn their MVP into a real product and figure out a profitable and scalable customer…

I didn’t invent this quote (can’t remember where I heard it) but what a great one to help remember that with most business-related transactions, price is definitely not the only factor.  Three…

FINALLY!!!  After years of waiting for equity-based crowdfunding rules (aka Reg CF) to be adopted and put into effect following legislative approval of the JOBS Act of 2012, it’s finally…

I’m not talking about a stand-up presentation in front of an individual investor or VC firm but rather some form of on-stage pitching event.  It might be called a “demo…

While you are still in the idea phase, investors tend to focus on vision, promise, potential and personality traits of the founder(s) because that’s all you have for them to…

Most startups think of a convertible note as the most common fundraising vehicle used during the pre-seed and seed stages (see related article titled “Convertible Note Basics“).  What they might…

Every field of study has its basic vocabulary of words and phrases that come up over and over again. This vocabulary is so fundamental that it is used to explain…

In a previous article, I described various ways to determine how much money to raise (you can read it here).  If you’ve decided and communicated how much you are raising, you might…

Market sizing is a very important element of your business plan and pitch deck.  The size of your market a question you’ll get asked all the time by investor prospects. …

Let’s assume you have already determined $500K is the ideal amount of money to raise in your current fundraising round (see related article titled “How Much Should You Raise”) and…

You didn’t plan for it to happen this way but you’re reaching the maturity date (end of term) on your convertible note and didn’t raise money in an equity round to cause…

You’ve just completed a great investor pitch with heads nodding and good interaction.  You’re about to ask “Does this opportunity interest you enough to explore an investment?” when instead you get…

Similar to the “So What” rule, every time you make a claim, prediction or forecast, imagine your audience is thinking to themselves “yeah, right!” in skeptical fashion immediately after seeing/hearing your…

Made available by Y Combinator in 2013, the SAFE investment instrument was intended to improve on the highly popular convertible note used by startups during the seed stage or as a short-term bridge between…

Once you have a product in the market with an increasing number of paying customers, your valuation will increasingly be driven based on financial and operational metrics.  Don’t get me wrong,…

There’s a reason it’s referred to as an “elevator pitch” – it must be expressed in a couple of sentences and no more than 10 seconds.  And that might even be…

It stands to reason that each investor is different in the way they go about making their investment decisions, both in terms of time spent and the type of research…

In a previous article I explained what convertible notes are and when they are commonly used (see article titled Convertible Note Basics).  Now I’d like to dive into one of…

Hopefully you are reading this before you decide how much to raise.  I’m referring less to very early seed funding just to get your minimum viable product (MVP) built, which…

In a previous article I suggested the proper flow and order of topics for your pitch deck (see article here).  Now I’d like to dive into the Problem section with…

Your pitch deck will become the single most valuable communications tool to use with external audiences of all types.  You will use it for multiple purposes.  If you ever decide to…

This article isn’t intended to get into every detail of convertible note mechanics. But I get enough questions about when to use them and what the basic components are that…

If you're fundraising during the very early formation of your company, your ability to predict the future will be very difficult.  Of course, you can imagine and dream what might...

I recently heard Dr. Robert Wiltbank from Willamette University use this analogy and loved it so much I had to share it with others.  Entrepreneurs are, by nature, very optimistic.  It’s one…

Some investors want to be the last one to commit and few want to be the first.  It’s mostly a safety and survival technique.  Think about it from their perspective. …

Fundraising is rarely easy and is usually a far underestimated undertaking by entrepreneurs that haven't done it before.  In the fundraising section of this blog, I describe ways of approaching the...

I know, I know – your idea is hot, your business plan is solid and you got an awesome reception from the recent demo day you participated in.  You’ve got simultaneous dialog going…

Here’s the scenario. After finding your first investor and then having a flurry of activity over a month or two (see related article titled “The Domino Effect of Fundraising”) that…

Fundraising can seem like herding cats.  You get some initial momentum, potentially from a pitching event, and have a bunch of conversations but can’t seem to get the funding commitments…

I use this rule all the time when advising startups and early stage companies.  Actually, it has application in any sort of sales pitch, regardless of your company’s stage.  I…

I just came from a startup pitching event with about 100 angel investors and VC’s in the audience.  The startups only had the typical 5 minutes to give their pitch,…

The immediate response is obvious: to facilitate the fundraising process.  But what other benefits can you expect to gain from participating in a pitching event?  How about these for starters:…