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Author Topic: How To Set Up Your Fundraising Round For Success  (Read 20 times)

Offline miniming

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How To Set Up Your Fundraising Round For Success
« on: June 10, 2021, 01:12:33 AM »
How To Set Up Your Fundraising Round For Success

Fundraising is an important part of a startup’s journey. For some, it can make or break the startup’s future. For others, it’s the difference between dramatically accelerating or hobbling their growth.

No two fundraising journeys and outcomes are alike.

Some founders raise such beautiful rounds, my jaw drops. They get brilliant terms on their investment that set them up for huge success in the future. For example, they get a top VC onboard for €1 million, for only 10% of the company’s equity and the product doesn’t even exist yet! Other founders struggle month after month to close their round of 200k. Each fundraising journey is fraught with its own difficulties. It can be intimidating. Lucky for you, I know what’s going on behind the scenes of these jaw-dropping fundraising rounds. Let me draw back the curtain and show you what’s happening on the inside. pg slot auto

The most common way to achieve those types of terms is when you as a founder get to the end of the fundraising process with the upper hand on investors. When there’s competition between investors, you will find yourself in a position to negotiate. This dynamic is best created by having multiple investors offering you a term sheet at the same time.

Sounds nice! But how do you get there?

These founders who succeeded in closing amazing investments at great terms succeeded at two things. First, some founders are simply great at pitching their startup and their future vision. But a great pitch alone won’t carry the day. You also need to manage the process correctly by doing the right things in the right order. In this three-part article series, I will reverse engineer the process behind a successful fundraising round, so you can succeed with yours!

Let’s start with how you need to start preparing for your round months or even years before...