Funded

Conclusion

As we bring the book to a close, I want to cover some of the key lessons I hope you’ll take away with you.

Venture financing was built for high-growth businesses. Not every business will be fundable. Even for those that are fundable, venture financing is just one of a number of ways to finance a growing business. Venture capital is not right for every business and will have many lasting effects on you and your company. Be sure you know what you are getting yourself into before you accept the first check.

Fundraising is like any other sales process. You’ll need great collateral and a strong sales pipeline. Running a strong sales process will not just increase your chances of success, but will also prove to investors that you are professional, organized, and knowledgeable about what it takes to close a deal.

Treat every round as if it is your last, and be mindful when spending the money you raise. The number one rule of success in startups is not to die. Fundraising is hard, and it is often harder to raise your second round than it is to raise your first round. Today, seed financing is occurring at unprecedented rates, and we’re entering what has been referred to as the “Series A crunch.” There is not enough Series A financing to support all of the seed-stage companies looking for their next round. Yes, great companies can always find money, but for those companies on the edge—the ones that haven’t yet hit it out of the park—being self-sufficient is more important ...