Raising a Seed Round in Canada

I stopped by Notman House yesterday to visit the current Founderfuel cohort and share some thoughts on how to raise their seed rounds.

I thought I’d share some of the insights from yesterday for those of you thinking of raising your own seed round.

The VC Funnel

CB Insights recently looked at 1,027 companies that raised seed funding and tracked them to death/ exit. Continue reading Raising a Seed Round in Canada

Make your pitch stand out

The blogosphere is littered with posts on how to prepare an investor pitch. Many VC firms have even posted their preferred format. As an example, here is Sequoia’s.

Source: https://docsend.com/view/p8jxsqr
Source: https://docsend.com/view/p8jxsqr

Imagine if you’re a VC hearing 3 pitches/ day, 5 days per week. That’s over 700 pitches per year! If every one followed the same format, you’d tune out.  Continue reading Make your pitch stand out

The long, windy road to a closed deal

0_nr_photo_phb_Winding_Road

The typical way that startups raise capital is to wait until they have 6 months of runway and then start a roadshow. They put a slide deck, model and pipeline together and hit the road.

Sometimes, this approach is unavoidable. Especially early on when you have less time and runway to be strategic. The problem with this approach, however, is that you are more than likely to get lots of “no”s.

The reason is that you’re asking relative strangers to enter into a multi-year, illiquid, risky relationship with you. You have to raise now. You leave no time for potential investors to track your progress. So, they will probably just pass. Continue reading The long, windy road to a closed deal

When should you get on the VC train?

train

I think we can all agree that the startup industry pays too much attention to VC. Our conferences, press, and tweets are dominated by VC-related news. Which fund just raised more capital? Who got funded? Who’s the latest unicorn? I contribute to that fixation in this blog all the time. 

With the rise of accelerators, the holy grail for young startups these days seems to be to get into YC as early as possible and then go on to immediately raise from VCs post demo day. 

There are certainly some massive successes that have followed this hype-laden path: Airbnb, Dropbox and Gusto are some of the biggest winners that come to mind. Closer to home, YC grad Vidyard is crushing it. But they passed on the hype in the Valley. They came back to Canada and took their time. Continue reading When should you get on the VC train?