The Art and Science of Fundraising (Excerpt)

The Art and Science of Fundraising - excerpt
According to Scott Weiss from Allegis Capital.
  1. I hear and I forget, I see and I remember, I do and I understand.
  2. Get multiple term-sheets (offers).
  3. Leave a positive impression on everyone you meet.
  4. Valuation by perfection, be pedantic on every investor touchpoint.
    1. Team
      1. CEO
        1. Authenticity - don't be phony, sweat, show your weakness, be yourself, know what you don't know, don't be defensive.
        2. Coachability - solicit feedback, surround yourself with mentors, you are a share holder before ceo.
      2. Chemistry, don't interrupt each other, everyone talks about what they know best.
      3. Match up your team to the investor team: Tech specialist -> geek, Numbers guy -> marketing, 2 to 1, 3 to 2.
    2. Market opportunity
      1. Tell a story in your slides, keep it short,
      2. You know all the questions, 20-30, prepare for each one of them. Know which team member is going to answer them. The ceo is like a point guard, dish out to the member who knows the answer.
    3. Competitive advantage
    4. Traction
  5. Practice, practice, practice, start with tier 3 investors and move up.
  6. Cast a wide net, meet many VC's and angels in a short time. Makes the deal hot.
  7. Talk with other CEO's before choosing a term sheet.
  8. Have a user advisory board, if an investor ever needs to call a user. give them stock. get their cellphone.
  9. Know the time to close, due-diligence period.
  10. Small odd-number board, majority of founders and independents (non-vc's), could be experts.





The Art and Science of Fundraising from Allegis Capital on Vimeo.

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