The Ultimate Guide to Raising Venture Capital: Startup Funding Process Step by Step
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- čas přidán 31. 07. 2024
- Venture capital is how Facebook, Google, Amazon and most category defining technology companies got off the ground as startups. But raising money as an entrepreneur can seem like an intimidating, opaque, and unfair process. I explain the process of raising venture capital from the inside as a Silicon Valley VC investor.
0:00 Intro
1:19 When should you Raise Venture Capital?
4:09 Creating your Pitch Deck
5:57 Finding and Meeting Investors
7:51 Running your Fundraising Process with Investors
10:24 Negotiating your Term Sheet / Deal
11:18 Picking an Investor / Closing
Process for raising venture capital funding includes:
1.Create a pitch deck. Templates:
www.dropbox.com/s/yvpgix1v2yk...
2.Make a target list of venture investors and get intros. Research tools:
www.crunchbase.com/
signal.nfx.com/
3.Manage your fundraising process. Template:
www.airtable.com/templates/en...
4.Negotiating a deal - stay tuned for another video on this topic!
5.Picking an investor - stay tuned for another video on this topic!
See my video on fundraising terms in SAFEs, convertible notes, priced round term sheets: • Startup Funding Deal T...
See my video on how to pitch in much more detail, along with an example pitch from CZcams's first fundraising deck:
• The Ultimate Guide to ...
Another common question I get is how much to raise. As a general principle, you want to raise the least amount you need to execute on the next 18-24 months of your roadmap vs asking for the most you think you can get. It's always easier to get more VCs to the table with a smaller amount, and then grow the round size from there with plenty of demand, vs have to scale back the round size (which comes across as a sign of weakness). What other fundraising tips or questions do you have?
Another must watch - and great intro, I didn't know that!
Thanks Tim! Maybe we can do a video demo of your amazing tech one day? :)
Very clear and easy to watch ...
thank you!
Love it! Will definitely forward to people who ask me for fundraising advice...
Thanks Josh! Appreciate that!
the most helpful resource I've found in my fundraising journey, thank you! I'll post back here when we finish raising. Im in the 8th meeting to date.
You’re most welcome! Yes would be curious how it goes and what you learned. Good luck!!
Another great video Wayne. Thanks!
Thanks Sumit! Glad you liked it!
Hello Wayne, i'm glad that i found you here ! Very clear and concise content your animations are stunning ! I will be at the silicon valley begining of June (we are a startup from Luxembourg) and we definetly will keep in mind and notes a big chunk of what you teach us ! Keep up the great content !
Thanks so much for the kind note Lyazid! Best of luck!
Another great video! Love it!
Thank you!
Thanks Wayne, very useful and clearly explained.😊
You're very welcome! Thanks so much for the kind note!
Super useful video - great content
Thanks Arman - glad you found it helpful!
#Awesome #PureEducation!
Thanks Wayman!
Awesome video. Thanks
Thanks Abhi!
How do you keep your hair so silky smooth? 😉😝
Beautifully explained!
Thanks! Hahaha I learned from you! :)
Thank you so much!!
You're welcome! Thanks for the kind note!
Thanks for the sharing this!
You're welcome! Appreciate the note Alysia!
Great stuff thanks
Thanks for the kind comment!
Great tips.
Thank you
Thanks Franky! Glad you thought it was helpful
Ok I'm only halfway through the video but I'm wonderfully impressed. I stumbled on this while looking for some peculiar insights into the difference between pre-seed and seed funding rounds. Lemme watch till the end. Might drop another comment. But I love your aura. It's giving happy.
Yoooo this was super good. Got lots of take aways. I've always been skeptical about VCs, and getting the right investor fit has been a priority concern for me. Hopefully I'm a able to navigate this journey with wisdom.
Are you on twitter?
@@WoodyLightyearx Thanks so much Woody, really appreciate the thoughtful note, and most of all, really glad you found it helpful!
Yep I'm here: twitter.com/waynejwhu
@@nogatekeepers Awesome. Thanks. Found you and followed you. But ahhh, quite a bit of bummer that your DM is closed and unaccessible 😐. But I can understand why you might have intentionally kept it close haha 😂.
@@WoodyLightyearx Thanks for the follow! I'm actually out right now on paternity leave so things are quite busy, I'd say CZcams comments is prob best way to get ahold of me :)
That was dope
Thanks man! Appreciate that!
can you make a video explaining on what limited partners(the people who fund vc's) look for in an entrepreneur starting a vc firm also explaining what documents and paperwork to show to the limited partners and how to convince them to fund your vc firm
That's a great suggestion! I think I can do that as part of a video covering the strategies VCs use to set themselves apart, which is at the core of what LPs look for. My next set of videos is set as I'm in editing mode, but afterwards, will add this to the list!
@@nogatekeepers thanks!
Hi Wayne, I would love to get your take on raising funding using an IDO / ICO process through a lauchpad like Polkastarter or ByBit. More importantly, how it differs / competes / complements with VC funding. I notice many web3 companies / protocols tend to use both, others just token offerings. As a pre-seed / seed stage startup, am not sure which way to go.
Hi Basanti! I’m not nearly as familiar with the ICO process so I don’t feel qualified to give you a run down. I’ll be researching it more soon though!
@@nogatekeepers Thanks Wayne. Aman
How should early founders pay themselves after raising funding?
And how do they get paid as the company grows?
Depends on how much they raise, how much capital the company needs, personal need, among other things. After raising seed funding, I've seen between 25-100k. It goes up from there as the company grows and raises money. There are a number of data sources that provide some benchmarks I could suggest if helpful!
@@nogatekeepers sorry for the late reply but that would be great!
Hey Wayne, do you edit the videos yourself? It's really top notch for a new channel - would love to know what software and editing suite you use
Hey! I use the Adobe suite - Premiere for my primary workflow/editing, Audition for sound, Aftereffects for motion graphics. I work closely with some other motion graphics artists here as I'm by no means an expert!
@@nogatekeepers Good stuff Wayne, appreciate it. May make the switch from FCP to Premiere
👍🏽I know a lot of folks who use Davinci for color grading but I’ve been too lazy to learn lol
@@nogatekeepers Don't blame you man, low key amazed you're balancing this and being a venture partner
@@tenbagger Thanks! I like videography, so thankfully I don't mind for this to be my weekend projects :)
How to raise fund for start up with no personal capital raise ?
Raising money for a startup without having to put personal money in? Pretty common in Silicon Valley but I think it’s much tougher to do outside of a major tech hub with a well developed financing footprint. Much more common to bootstrap outside of Silicon Valley as a result
Amazing work. Are you ever in London or have presence here?
Thank you! I don't unfortunately. Would love to one day!
@@iskandera1783 cool
Hi Wayne, please allow us download your videos for offline listening, repetition is how we learn.
Hi Chiefo - as a creator I can't enable that, CZcams controls it. I believe you have to buy CZcams's premium service to download offline.
Wayne, I am interested in raising VC but not sure where to start. Can you reach out to me for some guidance. Thanks!
First step is figuring out whether vc is right fit your business. The vast majority of the time, other means of financing - whether it’s bootstrapping or banks - are better. If you’re convinced vc is the right path, start researching who are the right investors online for your exact kind of business, create a pitch deck and try to network to them!
Where are those funding probability numbers coming from @8:15?
From my own pipeline of roughly 3000 pitches I’ve heard over the last decade. I would say I’m a typical lead investor who will do 2-3 investments per year, and I’ve done about 30 investments total
There are definitely other VCs that may have different numbers though, like a followon spray and pray investor may have much higher probability of funding
@@nogatekeepers makes sense. thanks!