Fundraising ABC’s: How to raise a seed round for B2B SaaS
Overview of fundraising basics, a 3-step how-to guide on seed round raising tactics, and pitch tips/resources
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Venture Lane Studio - Fundraising ABC's - Jan 2022
1. Fundraising ABC’s
How to raise a seed round
D AV I D C H A N G
@ C H A N G D S
davidchang.me/startup-tips
41. • Board seat or 2
• Option pool
• Liquidation preference
• Control over sale, new options
• Debt that becomes preferred equity
when you raise it
• No valuation, but the “cap” is a
ceiling
• Interest accrues, rate <10%
• Conversion discount
Equity
42. • Not done until money is in
the bank
Key terms
❑ Board composition
❑ Option pool
❑ Voting rights
❑ Founder vesting
❑ Change of control
❑ Redemption rights
❑ Information rights
❑ Anti-dilution
44. Valuation & Dilution
37%
See ownyourventure.com
See dlopuch.github.io/venture-dealr
Raise $1M on $5M pre
34%
Raise $1.5M on $5M pre
33%
Raise $1M on $3M pre
Dilution: what’s your end stake?
Valuation ($M)
Seed A B
$15
$6
$1
$30
$12
$5
Prep Target Socialize Ignite Close
45. How long does it take?
• Longer than you expect
• 3-6 months
• Speed limited by access to investors
• Your ability to find them
• Calendar availability (surprisingly hard)
How soon to start, how long it takes,
general timeline you can expect, how to
reduce time between the initial outreach
and closing a deal?
46. Choose your investors carefully
What characteristics to look for in a
venture partner?
62. bit.ly/startresources
davidchang.me/startup-tips
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