Aug. 20, 2024

248. Top Fundraisers First Build Their Lists

248. Top Fundraisers First Build Their Lists
Apple Podcasts podcast player icon Spotify podcast player icon RSS Feed podcast player icon Amazon Music podcast player icon Castbox podcast player icon Castro podcast player icon Deezer podcast player icon Goodpods podcast player icon iHeartRadio podcast player icon Overcast podcast player icon PocketCasts podcast player icon TuneIn podcast player icon
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.     

Transcript
WEBVTT

00:00:01.050 --> 00:00:05.589
I have a talk that I've given at a number of accelerator programs about fundraising.

00:00:06.089 --> 00:00:12.240
In that talk I cover some of the methodologies for fundraising that I don't go into in the VC Minute.

00:00:13.240 --> 00:00:21.120
With this looming Thanksgiving deadline, I thought now would be a good time to go into the logistics of building a fundraise.

00:00:22.170 --> 00:00:28.260
After interviewing dozens of founders, I found that the best fundraisers have one thing in common.

00:00:28.890 --> 00:00:33.509
They have a highly structured, organized, and disciplined approach to fundraising.

00:00:34.170 --> 00:00:35.399
It is not haphazard.

00:00:35.899 --> 00:00:51.079
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.

00:00:51.579 --> 00:00:53.710
Thanksgiving will be here before you know, it.

00:00:54.060 --> 00:01:00.302
And a really good solid fundraise process takes about three months from start to finish.

00:01:01.302 --> 00:01:03.912
The first thing that you have to do is build your list.

00:01:04.123 --> 00:01:11.832
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.

00:01:12.102 --> 00:01:14.983
This onesy twosy stuff will burn you out.

00:01:15.533 --> 00:01:18.623
Pause on everything and focus on building that list.

00:01:18.832 --> 00:01:20.933
Find 200 investors.

00:01:21.352 --> 00:01:24.893
Research how you're a fit for each one, even at a high level.

00:01:25.412 --> 00:01:26.733
You can use Excel for this.

00:01:27.112 --> 00:01:31.272
Some of the key fields that you want to track are what is your thesis fit for this fund?

00:01:31.602 --> 00:01:34.783
And what's your entry route, who is going to introduce you to this fund?

00:01:34.962 --> 00:01:36.852
Who are you still looking for introductions from?

00:01:37.722 --> 00:01:41.772
You want to have additional fields, like the stage that they're in, as far as your process goes.

00:01:42.043 --> 00:01:45.912
You also want to have a range of what you think their check size would be and ask them.

00:01:46.662 --> 00:01:50.802
One of the things that I always encourage founders to keep track of, as well as your temperature check.

00:01:51.253 --> 00:01:52.543
Are they hot right now?

00:01:52.632 --> 00:01:53.742
Are they lukewarm?

00:01:53.742 --> 00:01:54.912
Have they gone cold?

00:01:55.093 --> 00:01:56.772
How are they feeling about your round?

00:01:56.772 --> 00:02:00.343
Are they responding to your emails right away or are you not getting any response from them?

00:02:01.135 --> 00:02:03.415
You also want to have an introductory route.

00:02:04.105 --> 00:02:09.596
You want to go to the depths of your network and find out who can introduce you to these investors.

00:02:10.135 --> 00:02:13.406
Getting that warm connection makes all the difference in the world.

00:02:13.735 --> 00:02:19.443
Don't bother with buying lists and sending out 3000 spam emails, to VCs that are not a fit for you.

00:02:19.943 --> 00:02:28.883
If you need help finding 200 potentially qualified venture funds for your fundraise, there are four places where you can do this for free.

00:02:29.383 --> 00:02:31.152
signal.nfx.com.

00:02:31.652 --> 00:02:40.532
Openvc.app, connect.visible.vc, and a new one findfunding.vc.

00:02:41.302 --> 00:02:49.723
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.