Fundraising

What documents do investors need for a small seed round, 50-100k Early stage pre revenue?

Lexi Sprague Driven to improve parking.

November 6th, 2015

I am working on a startup in the online job market space and we are looking to raise a small seed round to keep us funded until launch. 

Annette Tonti Founder, President at The Start Exchange

November 6th, 2015

You need a pitch deck, financials and I like a (very) brief exec summary (2 pages).  These materials are to help you get in front of them.  Investors will be most interested in you, your team first, the the size of the market and your idea.

Nash Ogden Drupal, Magento, and Mobile App Development Development and Consulting

November 6th, 2015

The pitch deck needs to show clearly what problem you solve and how you will reach your target market.  Know what your cost of customer acquisition is! That is not easy but do your research and be prepared to talk about it. Too many folks pitch the idea and and fail at demonstrating explicitly how they will reach their market audience. 

Robinson Kelly CEO Clay Tablet Technologies Inc., President CSC Inc.

November 6th, 2015

At this early stage - its' VERY much about you and your team. As we raised our first and only round, a high-net worth individual said, after I'd walked through my carefully crafted, revolutionary value prop, "You know, I don't really get what you just told me, but I like you guys, I'll invest". So while you DO need a crisp clear compelling path to revenue - it's also very much about the comfort and fit between you and the potential investors. When I look at early stage investment opps now - the need for a great deck and feasible business model is a given - but the sense I get of the founders is the deal breaker for me.

Mark Lieberman Chief Startup Officer and Director, Advantage Accelerator at Oregon State University

November 8th, 2015

The documents you need will vary depending on which State you live; and which angel or angel group is investing and the amount of investment. Getting money in Silicon Valley is easier than say, Montana. Usually, the documents required for closing is dictated by the Angel(s). This could run from a priced round to a convertible note (most likely for a seed round). I am assuming that you mean the documents required to get their attention. This would include at a minimum:
A pitch deck (lots of examples online) with a good story arc;
One or two-page executive summary;
A good set of pro-forma financials;
An explanation of what the funds will be used for and milestones to achieve this objective;
A cap table; and
A good lawyer experienced in startup funding.

Make sure you have identified the team members or missing skillsets. Investors bet on the team, not the jockey. One last item: begin preparing a due diligence book.

Thomas Kaled Business Development Consultant @ thomas.kaled@gmail.com

November 6th, 2015

A 3rd for @ Annette Tonti and @ Nash Ogden-short and sweet, hold the dissertation at this level for the future. 

John Butler Founder and President at Quantumcyte, Inc, Director of Process Development at Stanford University School of Medicine

November 6th, 2015

Robinson is right regarding you and your team.  For the investment agreements,
we are in the middle of a seed round and are using a SAFE (simple agreement for future equity (https://www.ycombinator.com/documents/) for our investors.  It is convertible equity that offers premium shares at a discount.  We are a med device company and find that this works well for us.  

Neil Gordon Board Member, Corporate Finance Advisor and Strategy Consultant

November 7th, 2015

Investors don't need documents, they need information. The medium is not the message.

Anonymous

November 6th, 2015

Here is what I just did for another project.

Cover Letter                                                                                          1.

Technology Overview                                                           2.

Our Technology Roadmap                                                                      3.

Market Analysis                                                                                     4.

SWOT Analysis                                                                                      5.

P&L Schedule & Budget                                                                         6.

3D Models                                                                                            7.

2D Shop Drawings                                                                                 8.

Electrical Schematics                                                                             9.

BOM                                                                                                     10.

Copies of NDA'S                                                                                    11.

Patent Search                                                                                        12

Intellectual Property Claims                                                                    13.

International Energy Agency Hydrogen Initiative                               14.

President Bush’s Hydrogen Posture Plan 2005                                         15.

The Presidents Hydrogen Initiative 2007                                                  16.

The President Obamas’ 2015 Green Federal Fleet                                    17.

NREL - 2015 DOE Hydrogen & Fuel Cell Program                            18.

DOE - Storage Solutions                                                                         19.

DOE - Grid Solutions                                                                              20.

Shaping The Deal                                                                          21.

Conclusions & Considerations                                                        22.

Reference Materials & Resources                                                            23.

Accredited Investor Form                                                                        24.

Additional Information