Venture Capital’s Post

In the world of startups, the "ask slide" in a pitch deck is not just a formality. It's a necessity. When presenting to potential investors, clarity and foresight are your best assets. But it's not enough to captivate with visions of what could be. You must also ground your dreams in reality, showing exactly where every dollar of investment is headed. The ask slide does more than just state a number; It offers a roadmap of your intentions. By detailing how funds will be allocated, whether it's towards product development, marketing, or expanding your team, you're providing transparency and building trust. Investors are quick to form opinions, and leaving them to wonder how their money will be used is a risk no startup can afford. Your ask slide should answer the key question: "What are we getting into?" It should lay out the plan for scaling, growth, and how their investment will propel the company forward. This is your moment to show not just the vision, but the strategy behind it. Let's not wait for investors to ask how we will use their money. Instead, let's tell them, confidently and clearly, what they're about to be a part of. Because in the end, investors are more than just funders. They're partners in your journey to success.

The article is titled How To Scale Your Startup Sustainably Rather Than Chase Growth At All Costs, but the key points are applicable to all businesses. The key take aways are, ·      Focus on profitable core products for financial stability and longevity. ·      Diversify the foundation of your revenue. Please read the article for more information. #Focuscfo

Figuring out your startup's value can be tricky. It's not like a house where there's a set price. Instead, it's more like an amazing painting - the value depends on a mix of what it can potentially do (potential) and how much someone is willing to pay for it (market interest). Even though it's not an exact science, you can still get a good idea. Here's the thing: Seed funding rounds (early-stage investment) for startups can range anywhere from $4 million to $20 million, according to Pitchbook data. That's a big gap! So, what's the right price for your startup? 𝗛𝗼𝘄 𝗩𝗖𝘀 𝘃𝗮𝗹𝘂𝗲 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 Most use a mix of methods to get a realistic band. External methods use comparables and industry-multiples, internal methods discount financials and key metrics to derive a valuation. After a while, you develop a gut feeling for it: The earlier the startup, the more it is art vs. science. We are talking future value, not historical facts. 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝘀𝘁𝗲𝗽𝘀 𝗳𝗼𝗿 𝗳𝗼𝘂𝗻𝗱𝗲𝗿𝘀 𝟭. 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄 - 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹𝘀 - Project future financials and key metrics - What matters: Revenues, CLV, CAC, Churn, Growth - Find industry/stage benchmark metrics 𝟮. 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝘆𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 - 𝗖𝗼𝗺𝗽𝗮𝗿𝗮𝗯𝗹𝗲𝘀 - Find startups in your industry/stage - Research thir valuation, metrics and multiples - Get average valuation bands (sources: Peter Walker / Carta, Pitchbook, Dealroom) 𝟯. 𝗔𝗽𝗽𝗹𝘆 𝗩𝗖 𝗺𝗲𝘁𝗵𝗼𝗱𝘀 - Apply different valuation methods: ➺ Pre-revenue: Berkus, Scorecard. Later: VC, DCF. - Create scenarios: Worst case, best case, realistic - Your "true" valuation is somewhere in the middle 𝟰. 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗲 𝗮𝗻𝗱 𝗔𝗱𝗷𝘂𝘀𝘁 - Soft factors: Team pedigree, IP, market opportunity - Compare your performance to benchmarks ➺ Upgrade or downgrade valuation - Factor in future rounds, dilution and your milestones Ultimately, fundraising is a sales process: Prepare to negotiate your own ‘fair’ price.

When planning for a Series A round, investors generally look for a few key indicators that showcase the potential and resilience of a startup: 1/ When you're preparing to pitch for a Series A round, it's akin to laying all your cards on the table. Investors are especially drawn to scalability. They want to see that not only have you identified your product-market fit (PMF), but you're also poised and ready to amplify. Highlighting the role of technology in boosting this growth can be a crucial aspect of your pitch. 2/ Another significant factor is your acquisition strategy. Have you unearthed any organic channels through which customers gravitate towards you? Or is your strategy more reliant on paid channels? In the dynamic landscape of the tech ecosystem, demonstrating organic growth is a strong testament to the inherent value of your offering. 3/ Gross profits also come into play. Startups operating at a loss in the early stages is a familiar narrative. However, if your gross profit margins are thinning, it might raise eyebrows. It's essential to communicate your plan for achieving healthy gross profits in the foreseeable future. What do you think? 

Why many companies fail at scaling and what you can do differently. Scaling a business is a challenging yet necessary process for growth. When a startup fails it's usually one of 3 things.... 1. They grow too quickly without a solid foundation. 2. They fail to adapt to the demands of their expanding customer base(pivot). Or.... 3. They run out of money/can't get investment. So what do you do? Let's talk about that..... A) Start with identifying your perfect customer and your unique value proposition. Then... B)Make sure your marketing channels are reaching the right people and that your sales process is efficient and effective. In order to do that you have to.... C) Invest in technology and tools ensuring that you have strong systems in place that can provide data driven results, fostering a culture of accountability. And... D) Don't lose sight of the big picture. Lastly...Maintain clear communications with both internal teams and external stakeholders so everyone is aligned towards the same goal - sustainable growth with a strong foundation. Happy growing! 🚀 #brilliantlysaas #insurtech #startup #cgo

Startups leave digital footprint on the internet. Even before you start thinking about fundraising, parsers of startup databases (Crunchbase, PitchBook, CBInsight.com, Tracxn, Dealroom.co, etc.), as well as VCs, will find your startup and add it to their CRMs. That is why I recommend keeping up-to-date information about your team and your startup on LinkedIn. This will allow you to receive incoming calls from investors. You can also use the digital footprint to gather more information about your competitors. Today, I want to share my article on how VCs use data. I hope the information will be useful. https://lnkd.in/dsP9ky-K

Startups leave digital footprint on the internet. Even before you start thinking about fundraising, parsers of VCs and startup databases (Crunchbase, PitchBook, CBInsight.com, Tracxn, Dealroom.co, etc.) will find your startup and add it to their CRMs. That is why we recommend keeping up-to-date information about your team and your startup on LinkedIn. This will allow you to receive incoming calls from investors. You can also use the digital footprint to gather more information about your competitors. Today, we want to share our article on how VCs use data. We hope the information will be useful. https://lnkd.in/dcHjYS4b

Dear Startups, either change something or include a pill or two when reaching out to Investors. 😉 Think about how you're presenting your project to them. Is it engaging? Imagine sifting through hours of data with unclear presentations & charts – you'd likely end up with a headache too. 🤯 We have a suggestion on how to present your project clearly, concisely, & quickly. 👉 Through a dynamic project profile. All you need to do is to fill in your data on PitchSee, upload your video pitch & the intelligent interface will adjust everything according to the Investor's preferences. 🔍 One glance at your project profile, & they will have all the necessary information in a matter of seconds. Most importantly, they'll be thankful they won't have to struggle to stay awake while learning about your project & that means they'll get back to you with a decision much faster. 😉 Be smart, show them you're a professional who values their time & present your project in the right way using your dynamic project profile on PitchSee. It's free & it gets this job done. 😎 #pitchsee #startup #investor #angelinvestor #pitching

How Much Time Does an Investor Spend on a Startup Pitch? 😎 In the past, it was commonly believed that investors spent about 4 minutes reviewing a pitch deck. However, it turns out that this notion is no longer accurate. According to DocSend's data (https://lnkd.in/dRFr2jC8), in 2021, investors spent an average of 2 minutes and 24 seconds on the initial analysis of a pitch deck. This data primarily pertains to the pre-seed stage, but even at the seed stage, the situation doesn't improve significantly, with an average of 2 minutes and 59 seconds. ❗️Investors now allocate more time to specific slides, particularly the "Company Purpose" slide, which is typically the first one, and the "Traction" slide. So, what conclusions can early-stage startups draw from this? 🟣 Conciseness and Clarity Are Key: Investors have limited time, so being concise and clear in your pitch is crucial. 🟣 Company Purpose Formula: For your "Company Purpose" slide, consider using the formula: Definition + Goal. 🟣 Traction Metrics: Ensure that your traction slide reflects the key metrics relevant to your business model. 🟣 Trim the Unnecessary: Remove all unnecessary details and lengthy feature descriptions. In today's competitive startup landscape, making every second count in your pitch presentation can make a significant difference in capturing investor interest.

Startups leave digital footprint on the internet. Even before you start thinking about fundraising, parsers of startup databases (Crunchbase, PitchBook, CBInsight.com, Tracxn, Dealroom.co, etc.), as well as VCs, will find your startup and add it to their CRMs. That is why I recommend keeping up-to-date information about your team and your startup on LinkedIn. This will allow you to receive incoming calls from investors. You can also use the digital footprint to gather more information about your competitors. Today, I want to share my article on how VCs use data. I hope the information will be useful. https://lnkd.in/dfG9Eufw