What’s the best way to raise money?

Bruce Gibney (Former Partner @ Founders Fund)
Peter Thiel’s CS183: Startup – Class 8 Notes Essay

There’s a romantic notion that the only thing that matters is product and that you can devote yourself to that entirely. That is false. In fact, fully half of your job is selling the company because the CEO is the only one who can actually pitch effectively (no VC wants to be pitched by the VP of Sales).

What’s the best way to raise money?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
What Seed Financing Is For – AVC

The first step you need to climb is building a product, getting it into the market, and finding product market fit. I think that’s what seed financing should be used for. The second step you need to climb is to hire a small team that can help you operate and grow the business you have now birthed by virtue of finding product market fit. That is what Series A money is for. The third step you need to climb is to scale that team and ramp revenues a… (read more)

What’s the best way to raise money?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
In Between: The Tough Place To Be – AVC

Entrepreneurs need to understand this. There are a ton of options out there for early stage funding. And if you get to the stage where you need a growth round from a big fund, there are plenty of options for that too. But if you are looking for a Series B round to help you grow from early revenue status to true growth status, you are going to find that challenging. To put it another way, there are plenty of us who fund hopes and dreams. And plen… (read more)

What’s the best way to raise money?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Revenue Based Financing – AVC

A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenues to the investor. For simplicity, you can think of it as a revenue share type of arrangement. Investor gives capital to company in exchange for a small percentage of gross revenues. RBF lives as a hybrid of bank debt and venture capital. This kind of financing has been around for a while in non-tech industries … (read more)

What’s the best way to navigate the fundraising climate?

Reid Hoffman (Partner & Co-Founder at Greylock Partners)
LinkedIn’s Series B Pitch to Greylock: Pitch Advice for Entrepreneurs

Understand the broader financing climate. In 2004, investors regained interest in the consumer internet again. Friendster raised a big round in 2003; MySpace started gaining traction. But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue.

What’s the best way to navigate exit options?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Founders Circle – AVC

In a nutshell, Founders Circle provides liquidity for the founders and employees of a “breakaway growth companies” so they don’t need to sell or take the company public prematurely. It’s great to have investment vehicles like Founders Circle in the venture capital market. It provides an important part of the “capital stack” that startups need to access to go all the way to the finish line.

What’s the best way to decide when to raise money?

Bruce Gibney (Former Partner @ Founders Fund)
Peter Thiel’s CS183: Startup – Class 8 Notes Essay

You should always try to pitch when you don’t need money. That is when you are strongest. Short runways are often perceived as a sign of massive weakness. If everybody knows you’re desperate, the best that can happen is you get screwed on terms.

What’s the best way to decide when to raise money?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Reblog: VC Cliché of the Week – AVC

Some of the best companies I’ve ever worked with were funded at the height of the last bubble and they are doing great now. So it doesn’t really matter when you start a company, but it does matter that you can make it through tough times. Because right now we have a rising tide that is lifting all boats and that won’t last forever.

What’s the best way to create your pitch deck and demo?

Reid Hoffman (Partner & Co-Founder at Greylock Partners)
LinkedIn’s Series B Pitch to Greylock: Pitch Advice for Entrepreneurs

While it’s important to think carefully about your future, don’t think too far into the future. You will change, the world will change, and the competitive landscape will change. It is useful, however, to have a strategic direction supported by confident projections.