What is your fund-raising strategy? Have you given it any thought or do you think that once you’ve built your product the money will flow? Successful investors will tell you that you should have a strategy and it’s very different from seed round to Series A, B and C rounds. Aydin Senkut, Felicis Ventures, advises that it’s all about the relationship between you and the investor. There has to be some chemistry and camaraderie because of shared interests beyond your technology. Accordingly to Aydin, building rapport over common interests goes a long way to building trust in you as someone who can realize a vision. Moreover it can demonstrate that you are worth supporting even if you haven’t yet achieved market traction. Aydin commented that as an angel investor he’s scouting for the best out of the box technology. However, he’s an investor who invests in people as much as the technology. He’ll even travel to find the best talent and ideas and from there determine if there’s a cultural match so that together you can realize your vision.
In comparison, as Ann Winblad of Hummer Winblad points out by the time you get to Series A you need to articulate your business vision – not just your landing strategy but also your expanding strategy. She observes that most entrepreneurs seeking angel funding only are able to describe the product features and not how they’ll grow a business out if it: how you’ll sell it, who will buy it and how much will they pay. A company who is really ready for Series A has validated their business model and they know how they’ll deliver high value from a customer point of view.
Companies looking for Series A funding choose Vision & Execution to help them articulate their expanding strategy to increase their chances for funding success.