To find venture capital funding for your tech startup, it helps to have a current roadmap.
Pete Flint, a Managing Partner at NFX, a seed-stage venture firm, offers an excellent 13 Point Startup Fundraising Checklist that can help guide startup founders through a successful seed stage financing.
Today startup founders need to understand:
- Series A rounds have gotten bigger and are being done later on in a company’s lifecycle.
- To fill this gap and help companies in this formative early stage, seed funds have also grown bigger and more established as well.
- Alongside the expansion of capital into each Series A financing, the expectations on companies looking to raise their Series As have heightened.
- With a growing number of startups in many different sectors, raising a top series A has become a growing challenge.
It's worth noting that in general, having product-market fit and a minimum amount of scale are usually prerequisites for raising series A funding.
But here are 13 additional proof points that investors look for in startup investments, so you can evaluate your startup's readiness for fundraising.
- Show Traction
- Demonstrate Product-Market Fit
- Prove Scalability & Unit Economics
- Have a Big Vision (but OK to Start Small)
- Build a Clear, Compelling Narrative
- Build Out Your Team
- Chart a Path to Defensibility
- Create Scarcity
- Build VC Relationships Early
- Project Momentum
- Climb the Ladder of Proof
- Make a World-Class Pitch Deck
- Build Social Proof
Visit the full blog post here for valuable explanations of each of these points.
Thanks to Pete Flint of NFX (@PeteFlint) for this information and the graphic. NFX is a seed-stage venture firm that also builds free software tools for Founders. This includes Signal - the fastest way Founders find their intro paths to top VCs.
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