16 Common Questions About Fundraising

Raising venture capital isn’t easy for more startups. Many struggle through it because most aren’t fundraisers by nature and because it’s scary and hard to determine when you should start and why. Steve McDermind from Andreessen Horowitz identified 16 Common Questions about Fundraising. Below are the main ideas. To read the full article, click the link at the bottom of the list.

  1. When Should We Raise Capital: How Do We Time It Right?
  2. What Does A Typical Company Raising A Series C Look Like, And What Are The Right Milestones We Need To Hit In Order To Ensure A Successful Raise?
  3. Should We Ask For A Specific Valuation?
  4. How Much Capital Should We Raise?
  5. What Investors Should We Target?
  6. What Are ‘Crossover’ Investors?
  7. Should We Include ‘Strategic’ Investors In Our Round?
  8. How Many Investors Should We Approach? Can’t I Approach Just A Select Few?
  9. Can’t I Just Have A Conversation With The Investors? Do I Really Need To Prepare A Full Slide Deck?
  10. How Long Does It Take To Raise A Round?
  11. I’m Worried About Sharing Confidential Information. How Much Information Should We Share — And When Should I Provide Customer References?
  12. What Kind Of Financial Model Should I Provide To Investors?
  13. Should We Raise Debt Instead Of Equity?
  14. Should We Use An Advisor To Help Us Raise The Round?
  15. Should I Sell Some Secondary Stock?
  16. What Happens If I Come Up Empty After Running A Process, Or If The Market Conditions Turn Against Me?