Aug. 20, 2024

248. Top Fundraisers First Build Their Lists

248. Top Fundraisers First Build Their Lists
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Season 4

Text your thoughts directly to Rich.

Before you send a single email, build a list of 200+ target VCs. Here are four sites you can use for free.

signal.nfx.com
Openvc.app
connect.visible.vc
findfunding.vc

About AVL Growth Partners
AVL Growth Partners, founded in 2009, is the leading fractional Finance and Accounting firm supporting organizations in pivoting from growth to scale. AVL brings an experienced team of CFOs, Controllers, and Accountants to your organization, delivering transparent, strategic actions for short and long-term success. Transform your financial approach affordably with AVL, supporting companies coast to coast - get to know AVL Growth Partners at avlgrowth.com. (Sponsored)

About SpringTime Ventures
SpringTime Ventures seeds high-growth startups in healthcare, fintech & insurtech, and logistics & supply chain. We look for founders with domain expertise, forging a path with a truly transformative technology. We only invest in software-based businesses in the USA. We bring a people-focused approach, work quickly, and reach conviction independently. Our initial check size is $600k. You can learn more about us and our approach.     

WEBVTT

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I have a talk that I've given at a number of accelerator programs about fundraising.

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In that talk I cover some of the methodologies for fundraising that I don't go into in the VC Minute.

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With this looming Thanksgiving deadline, I thought now would be a good time to go into the logistics of building a fundraise.

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After interviewing dozens of founders, I found that the best fundraisers have one thing in common.

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They have a highly structured, organized, and disciplined approach to fundraising.

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It is not haphazard.

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If you go back and listen to some prior episodes, you'll hear folks like Liz, Giorgi from Soona, or AJ Bruno from Quota Path, or Neha Govindraj from Bonside and really all of the founders, talk about how focused they are in their fundraise.

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Thanksgiving will be here before you know, it.

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And a really good solid fundraise process takes about three months from start to finish.

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The first thing that you have to do is build your list.

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What you don't want to do is have a haphazard approach, where you email some investors and then you come back and you find more investors and you take a few meetings.

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This onesy twosy stuff will burn you out.

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Pause on everything and focus on building that list.

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Find 200 investors.

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Research how you're a fit for each one, even at a high level.

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You can use Excel for this.

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Some of the key fields that you want to track are what is your thesis fit for this fund?

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And what's your entry route, who is going to introduce you to this fund?

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Who are you still looking for introductions from?

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You want to have additional fields, like the stage that they're in, as far as your process goes.

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You also want to have a range of what you think their check size would be and ask them.

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One of the things that I always encourage founders to keep track of, as well as your temperature check.

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Are they hot right now?

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Are they lukewarm?

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Have they gone cold?

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How are they feeling about your round?

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Are they responding to your emails right away or are you not getting any response from them?

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You also want to have an introductory route.

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You want to go to the depths of your network and find out who can introduce you to these investors.

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Getting that warm connection makes all the difference in the world.

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Don't bother with buying lists and sending out 3000 spam emails, to VCs that are not a fit for you.

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If you need help finding 200 potentially qualified venture funds for your fundraise, there are four places where you can do this for free.

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signal.nfx.com.

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Openvc.app, connect.visible.vc, and a new one findfunding.vc.

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All of these are free databases listing venture capital firms, and you can filter and sort the information looking for ways that you would be a fit for those funds.