Customer Acquisition · Fundraising

Resource for Preparing for VC's?

Jordan Plosky Co-Founder and CEO at ComicBlitz LLC

October 15th, 2015

So, my topic of discussion is a little more pinpointed than the subject would have it seem.  We are a startup that has just launched, and we are preparing our financials to start to pitch to VC's for investments.  
However, we would love a resource, or a consultant to step in, and let us know if what we are preparing is in the ballpark of what VC's are looking for.  For example, is our CAC to high?  Are we giving ourselves too high a valuation?  Things of this nature, we would be happy to pay someone to walk us over certain specific financial hurdles.  We just want to be sure that what we are presenting will be met with enthusiasm, and realism.  
Thanks for any help on this!
As a founder, you’re always in fundraising mode (whether active or passive). In this course, we’ll teach you how to successfully raise follow-on capital, establish a valuation for your company, build an investor pipeline for your next round, and more...

A.J. Lawrence Data focused revenue growth executive from startups to Global1000s

October 16th, 2015

Before you talk to someone, you might want to check http://foresight.is for their material on preparing financial models (good industry metrics included) also compass.co has great benchmarks. I started with both these resources and then talked with someone and my ability to understand and use their advice was much, much higher. Good luck!

John Elkaim

October 15th, 2015

Hi Jordan, I recommend you talk to Bernard Slede: https://www.linkedin.com/profile/view?id=AAkAAAADFE4BhWZbEtJQ20UJ_w9zqzaDgElqNeM&authType=NAME_SEARCH&authToken=RC1y&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A201806%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1444968624435%2Ctas%3Abernard%20 Best, John

Peter Johnston Businesses are composed of pixels, bytes & atoms. All 3 change constantly. I make that change +ve.

October 16th, 2015

I sense fear, uncertainty and doubt here. FUD many mentors and advisors are happy to profit from.

But the answer is simple. Don't be frightened of VCs - go and talk to some. They love to be open in telling people what they want - it helps them as they get better pitches which tick all the right boxes. Along the way you'll find lots of tips on what they're looking for, ways to present and how to make yourself stand out.

Michael Lipson Executive Coach & Strategic Consultant

October 16th, 2015

My earlier responses got truncated - had said happy to give you some time & perspective (I like to pay it forward) even tho my biz is coaching founders/CEO’s. contact @ lipson@comcast.net

Rob Kornblum

October 16th, 2015

Jordan
I agree with Peter Johnston. I don't think you need a consultant. Just about everything you need to learn about preparing a pitch you can find online. If you want to see great pitches, try pitchenvy.com.

By the way, with regards to valuation, you aren't going to set it. The investors are. You will get the best valuation by creating competition for your deal.

Also, understand that most investors want to build a relationship, so you aren't preparing for a single great performance. Build the relationship, let them see you have a great product and great company.

Good luck.

Michael Lipson Executive Coach & Strategic Consultant

October 15th, 2015

Jordan Valuation is always tricky. Create demand for your deal - that's the best antidote to this concern. And that happens from how you story and pitch what you're about, grounded in facts and analysis and inspired by vision, personality and c I've been involved in 300+ start ups, CEO'd some of them, and have been coaching founders and CEOs for quite some time. Reply and I'll send you my linked in when I'm on my laptop. Sent fr phone - excuse typos pls

Kevin Carney Content Marketing works, but needs better tools.

October 16th, 2015

I can recommend a pitch coach as well. He works with The Founders Space in San Francisco. His name is Steve Austin.

http://www.foundersspace.com/mentors/steve-austin-founders-space-instructor/


Andrew Lockley

October 16th, 2015

Happy to help you FOC (for a while) Your CAC is what it is. Don't ask for permission from VCs for empirical facts. Use your preparation time to test market, to make sure you can prove your numbers. Your valuation is what the market clears at. No harm in trying reasonably high, at least at first. Best approach is to get to the point where you can prove you don't need money urgently before you look to raise it. That massively strengthens your hand in negotiations. Connect via my site Andrewlockley.com Thanks Andrew

Andrew Katz Investments/Strategy/Business Development

October 16th, 2015

Hey Jordan,

My company specializes in these types of ventures. From consulting to valuation to capital injections. Please email me at andrew@purserlabs.com and we can discuss.

Akram Benmbarek Building & Growing innovative businesses

October 16th, 2015

Jordan, Your CAC will only be high if it's does not add up with your customer lifetime value. About valuation, I would not worry about it, but I'd rather focus on having a solid story, with a strong value proposition and unique differentiators. With top tier VCs, your capital requirements, your benchmarks, and your cap structure will dictate the valuation. You ll be surprised, many VCs in the valley give a higher valuation than what the entrepreneur anticipates, because they know he/she needs more money than he/she thinks, and they need to keep a healthy cap structure. Feel free to email me if you need further help. Akram