Lesson 6. The Realities of Funding

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What is funding for? How do you find it?

Why do investors expect a “10x” return? How do you determine the value of your startup?

This lecture answers these questions, explains this process from the perspective of the investors, and explains the realities of raising funds for early-stage (impactful) companies.

(Total running time: 64 minutes)

1. What is funding?
2. Realities
3. Sources
4. Angels
5. Angel groups
6. Venture capital
7. Investor returns
8. Funding is sales
9. Forms of funding
10. Preferences
11. Valuation
12. Traction
13. The “ask”
14. Investor relations

Worksheet

The Next Step – Worksheet

Related articles

MailChimp and the Un-Silicon Valley Way to Make It as a Start-Up – The New York Times
Advice for Companies With Less Than 1 Year of Runway – Dalton Caldwell
How to Build a Unicorn… and Walk Away With Nothing – Heidi Roizen
The Most Important Advice I Could Give You About Unicorns – Both Sides of the Table
Why would investors prefer equity rather than a convertible note? – – Quora
Heat Death: Venture Capital in the 1980s – – Reaction Wheel
A Venture Capital History Perspective – Feld.com
Selecting, not filtering: Give me a reason to say yes – Reaction Wheel
The Problem in Everyone’s Capped Convertible Notes – Silicon Hills Lawyer
The “Doubling Model” For Fundraising – AVC.com
There’s an alternative to raising VC and it’s called revenue-based financing – TechCrunch

Venture-scale Fundraising

Y Combinator’s Guide to Series A

 

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