You created your perfect fundraising pitch deck, despatched it to VCs, and now they wish to speak to you. Improbable!
So, what’s occurring on a median intro name with a VC, and methods to put together for it?
Typical founders fundraise 1–3 occasions of their life, every time speaking to 10–30 buyers. The common investor talks to about 3–5 firms day by day, with a whole bunch of intro conferences a 12 months. Unsurprisingly, first-time founders may really feel nervous concerning the assembly, not understanding what to anticipate from the decision.
Particularly if they’re elevating for the primary time. Nevertheless it shouldn’t be like that!
So I wish to assist right here. Over the past 5 years, we invested in 35 firms in our earlier fund and already in 17 from The Games Fund.
I analyzed our calls and picked up information from our portfolio firms who have been speaking to numerous VCs in some unspecified time in the future, and right here is our expertise:
Please notice, The Video games Fund invests in Video Video games firms, so some questions are sport industry-specific, however you’re going to get the concept.
Be sure that to test the profile of the fund you’re speaking to. Test their web site, CrunchBase, LinkedIn, and portfolio. Perceive what sort of firms they fund. Have context.
Mostly, you’ll speak to the funding supervisor in your first name and later with the associate.
Often, the intro name takes about 1 hour, however it’s price asking how a lot time we’ve got for this name.
Questions could possibly be requested in the course of the pitch or after it. We choose inquiries to buyers proper after our intro and inquiries to founders after the pitch.
Typically buyers may politely interrupt you and ask to elaborate on explicit matters and provides them extra particulars. How precisely will matchmaking be designed? Or how would gear have an effect on the participant’s energy and effectivity within the sport? Or how lengthy is the typical match?
Buyers count on founders to have a stable understanding of the sport’s core pillars. Nonetheless, it’s alright to say that to reply this particular query, you’ll need to convey in your Lead Designer or CTO — you’ll be able to present that info in a follow-up e-mail or arrange one other name together with your core staff to have a deep dive into particulars.
Bear in mind that you’re additionally anticipated to ask inquiries to buyers in case you’d prefer to.
Buyers are individuals, and you’ll cope with individuals, not summary companies. It’s essential to know if it’s a match.
Often, the analysis course of takes 1 to 4 weeks and will embody a number of interviews and requests.
You may be requested to offer extra info: company budget, hiring plan, prolonged presentation, information room, design documentation, go-to-market technique, PnL, and many others. (you can find our templates here). There could possibly be a request to have one other name together with your management staff. You may be requested for references out of your earlier colleagues.
Don’t be afraid to share info. Don’t ask to signal NDA. Don’t breach the NDAs you’ve signed. It would really feel uncomfortable, however no person is stealing concepts, and your energy is in execution and talent to generate new concepts. And no person needs to be forcing you to reveal info you legally or morally can’t.
We additionally felt that after we have been fundraising and pitching our fund to potential buyers. And we’ve got over 40 buyers who mentioned sure, so you’ll be able to think about what number of pitches we’ve made. And a few individuals have been dishonest, had no intention to take a position and simply collected info from us. Sure, it doesn’t really feel good. Nevertheless it doesn’t matter. What issues is to be sincere and clear.