How to raise a seed round. Six great reads for early stage startups.
Do you know your redemption rights from your representations? If you’re considering raising a round of funding - it’s crucial to get to grips with the landscape and the terminology.
We’ve collected some of our favourite articles on fundraising. Consider it a little crash-course on raising a round - with some great hints and tips for veterans too.
- A beautifully simple introduction to raising capital. Start here. Alex Taub, A Very Simplified + Formulaic Way To Raise Your Seed Round.
- A classic from Paul Graham of Y Combinator, How to Raise Money. Read this for practical, sometimes brutal advice on what to do, how to approach funding and what to expect from investors. Well worth a read.
- Do you really know how a VC works? Taylor Davidson lays it out in Fundraising for Entrepreneurs. Treat your investors like you treat your customers - find investor-startup fit. Understand your market, then talk in their terms. You’re likely to get far better results - and get there faster too.
- Great advice from Steve Schlafman of RRE Ventures, on Raising Seed Capital. Like Taylor’s slides above, he outlines your options (VC and Angels are not the only way for you to grow your business).
- Term sheets (and why they matter more than you think). Read this to get a quick handle on general terms. How to Read a Term Sheet.
- Do you even know what you’re doing wrong in your funding round? Here’s Sam Altman from Y Combinator on Fundraising Mistakes Founders Make. It’s got some great tips you’ve probably never thought of (there were a few ‘doh’ movements for us too).
THE SECRET TO SECURING INVESTMENT AND A GREAT VALUATION.
If you're working on a round of investment, it's often difficult to know what to focus on.
Here's the secret. There's little more important to an investor than a great business model, and a strong financials behind it. It's the key to raising capital. And getting the valuation that you and your business deserve.
We're offering a free course to get you started. Developed in conjunction with the Design Council - we'll outline our approach to building a great investment case, and exercises to building your own. What are you waiting for?
No doubt about it, raising a seed round is tough. These articles are only the start - but they're a good start. Learn from others. Don't get too bogged down in strategy. Simply make sure you've got a great product. The beginnings of a profitable business opportunity. A great pitch. Then get out there, build and leverage that network as hard as you can.
If you’re raising and you're feeling stuck, get in touch. Advice is free, and I’d love to hear your plans.
Jared is a partner at Think Plan Thrive, a London based Strategy company. We help organisations seize opportunity. Execute and grow, fast. We’re specialists in commercial and marketing strategy, pitch and investment cases.