Venture Capital Guide for Startups
Funding can often be one of the biggest obstacles for startup success. Perhaps you’ve gone through the seed stage and acquired funding from angel investors. These early investments served their purpose to help your business move from ideation to early product development, but now it’s time to move on to venture capital.
Your first VC funding milestone, Series A, is the equivalent to stepping up to the major leagues. Unlike the tens of thousands of dollars you raised in your earlier investments, Series A brings the big bucks—we’re talking millions of dollars. In fact, the average Series A funding in 2019 was more than $11 million.
In addition to knowing when you’re ready to move onto Series A, there are some important factors to consider.
- Finding the right VCs - do your due diligence to research different venture capitalists and their firms. This will help you identify core competencies and areas of conviction as well as to narrow down your search because some may have investments in competitors or potential competitors.
- Go beyond the cold emails - stand out from all the other startups and network. Whether it’s a warm introduction or through social platforms and local networking events, building relationships can be a game changer in the VC world.
- Craft an exceptional pitch deck - consider bringing a pitch deck teaser that touching on broad topics in addition to a detailed deck. Other basic best practices include hiring a designer to polish your presentation, avoiding vanity metrics and including a call to investment.
Check out more best practices and tips in Embroker’s Guide to Raising Venture Capital, geared specifically for startups.