How to Raise Money in 9 Easy Steps

VC

Nicolas WittenbornPoint Nine Capital

About me

I blog (too little) at heyni.co and tweet (too much) @ncsh

Associate at Berlin based early-stage VC Point Nine

Get familiar with potential investors

Make sure they are investing in your area

And that it’s the right stage

Step 1: Select a target

Make sure there is a fit!

Not every VC invests in everything

Step 1: Select a target

(Not the typical VCs)

Find some context

Make subject line & intro count

Have all material at hand

Step 2: Approach & Open

Don’t ‘shotgun’ your pitch

Your potential investor wants to feel special ;)

Step 2: Approach & Open

Precise Deck

Financial Plan

First Traction

Step 3: Demonstrate Value

Don’t overcomplicate it

The material should be concise and easy to understand

Step 3: Demonstrate Value

BUT don’t make it too simple either

Step 3: Demonstrate Value

Be Ambitious

But not overconfident

Or unrealistic

Step 4: Manage Expectations

Step 4: Manage Expectations

Looks good but won’t happen

Ask for a ‘coffee meeting’

Book a nice hotel, buy flowers & champagne

Step 5: Extract to a seduction location

Ask for a ‘coffee meeting’

Book nice hotel, buy flowers & champagne

Step 5: Extract to a seduction location

Wait, this was for the ‘other’ Game… … let’s move on to the next step

Step 6: Make a physical connection

Bring your co-founders

Be on time & prepared for a discussion

Have some slides as backup

Step 6: Make a physical connectionDon’t be a ‘ballhog’

Let your team chime in

Identify last question marks

Provide missing data (incl. sources)

Set up reference calls

Step 7: Disarm the obstacles

Step 7: Disarm the obstacles

Don’t go on vacation during fundraising

Why would you do that?

Solicit a decision deadline

Communicate that there are other options on the table

Update on major developments (numbers, deals, hires)

Step 8: Pump Buying Temperature

Don’t name drop (or worse, lie)

Avoid an ‘investor cartel’ forming behind your back

Step 8: Pump Buying Temperature

Get lead investor to sign a term sheet

Let potential co-investors and/or lemmings know

Close the round & get back to business

Step 9: Blast Last-Minute Resistance

Step 9: Blast Last-Minute Resistance

A handshake is not a contract (unfortunately)

Keep all options open until the deal is signed

Ready to make it rain?!

Send your pitch to nicolas@pointninecap.com (pls don’t try #5)

Or snapchat your Executive Summary to nc5h(just kidding, but I would be impressed)

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