Fundraising Advice from Mark Organ

Screenshot 2015-08-24 09.09.05

There’s lots of noise out there on the twitter-sphere, but at least once/ day there’s gold. Today’s gold came in the form of a tweet-storm by Influitive‘s founder and CEO Mark Organ. Mark shares some great advice on fundraising. The thing with tweet-storms is they really should be blog posts. So, here you go:

  1.  Nail the Ying-Yang – absolute determination to win YET coachable/likeable/humble
  2. The closer you are to A16Z at Sand Hill Road, the more you gotta look a little nuts. Part of the pattern.
  3. your pitch should be Hollywood-esque. Joy/Pain. Hero/Villain. Suffering. Elation. Take your audience on a trip.
  4. 95% of VCs do not have any clue. You must take this into account in your pitch, yet make them feel like smartest in the room
  5. Own the room. It is yours. Those people are fools if they don’t see the magnitude of the opportunity.
  6. You should have one jaw-dropping metric (esp for the B). That is what the main partner will be repeating in elevator.
  7. get the founder-market story down. Partner should think “this founder is the best person to be tackling this problem.”
  8. if 4 out of 6 partners want to hear a formal pitch after coffee meeting, then it’s a good time to start a process.
  9. there are 3 types of processes. #1 is the horse race and takes most cojones. Tell all firms they must have term sheet by X date.
  10. #2 is the steeplechase. Focus on 5-8 firms most likely to give term sheet (”rabbit”) then get others to chase the rabbit.
  11. #3, my specialty, is wounded rabbit. It’s a term sheet w/ high valuation & shitty terms that nobody else needs to know
  12. if you are outside of the US, get a US term sheet, then your locals will be a lot hornier for your stock.
  13. resolve financing timing issues by raising 2 rounds simultaneously. Current round and the next one. They reinforce.
  14. get your independent board members on before fundraising. It is more impressive and you’re less likely to get shot post-$
  15. bring 1 other person with to pitch if possible, they should have defined role.
  16. have fun, be grateful for the oppty. U could be picking rocks but instead you’re pitching 4 $$$ at alternate universe prices.
  17. that is collected “wisdom” of my financings. Get out there and get that money!!