Documents You Need

19.01.2016 |

Episode #9 of the course “A guide to seed fundraising” by Geoff Ralston, Y Combinator

 

Do not spend too much time developing diligence documents for a seed round. If an investor is asking for too much due diligence or financials, they are almost certainly someone to avoid. You will probably want an executive summary and a slide deck you can walk investors through and, potentially, leave behind so VCs can show to other partners.

The executive summary should be one or two pages (one is better) and should include vision, product, team (location, contact info), traction, market size, and minimum financials (revenue, if any, and fundraising prior and current).

Generally make sure the slide deck is a coherent leave-behind. Graphics, charts, screenshots are more powerful than lots of words. Consider it a framework around which you will hang a more detailed version of your story. There is no fixed format or order, but the following parts are usually present.

Create the pitch that matches you, how you present, and how you want to represent your company. Also note that like the executive summary, there are lots of similar templates online if you don’t like this one.

  1. Your company / Logo / Tag Line

  2. Your Vision – Your most expansive take on why your new company exists.

  3. The Problem – What are you solving for the customer–where is their pain?

  4. The Customer – Who are they and perhaps how will you reach them?

  5. The Solution – What you have created and why now is the right time.

  6. The (huge) Market you are addressing – Total Available Market (TAM) >$1B if possible. Include the most persuasive evidence you have that this is real.

  7. Market Landscape – including competition, macro trends, etc. Is there any insight you have that others do not?

  8. Current Traction – list key stats / plans for scaling and future customer acquisition.

  9. Business model – how users translate to revenue. Actuals, plans, hopes.

  10. Team – who you are, where you come from and why you have what it takes to succeed. Pics and bios okay. Specify roles.

  11. Summary – 3-5 key takeaways (market size, key product insight, traction)

  12. Fundraising – Include what you have already raised and what you are planning to raise now. Any financial projections may go here as well. You can optionally include a summary product roadmap (6 quarters max) indicating what an investment buys.

 

Recommended book

“Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms” by by Jeffrey Bussgang
Share with friends