Sep 252013
 September 25, 2013  Posted by at 8:49 pm  Add comments

Today’s Lunch-N-Learn at ATDC was John Yates giving his Top 10 Points for Raising Money From VCs:  How To Do It Right From a Seasoned Veteran

John is one of the most experienced startup lawyers in Atlanta and he shared his views on what VCs were looking for in Series A rounds.  He based the presentation on the 10 ‘Investor Scorecard’ criteria he uses with his clients to assess their readiness to raise funds.

Here’s a summary of John’s tips:

1.  Market Size

Select a large and growing market and master it – conduct your market research on competitors, market size and customer profile.

 2.  Protectable Product / Service

Build a protectable product/service – articulate bariers to entry and remember patent protection under the America Invents Act.

3.  Management Experience

Locate a seasoned entrepreneurial friend – and make him/her a member of your management team, investor or Advisory Board

4.  Investor Quality

Find a small group of impactful angel investors to support the initial funding – avoid large numbers.

 5.  Cap Table

Don’t mess up the cap table – avoid investor terms or valuations that may preclude future financings

 6.  Ability to Pivot

Be prepared to pivot/morph the company’s business model – and display a willingness to do so, if needed

 7.  VC Targets

Carefully select VC targets and learn as much as you can about them and their key metrics before meeting – note the differences in funds in Silicon Valley, Boston, NYC, Atlanta/SE

 8.  Financial Experience

Master the financial numbers – and practice answering the tough financial questions

 9.  Sales Forecast

Prepare a believable sales forecast and be able to defend it

10. Presentation Style

Practice your investor presentation with colleagues, advisors and friendly VCs in advance

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>