Step #1: Learn how venture capital works and decide if its right for you

Glossary

Fundamentals

SAFE Notes

Convertible Note

Step #2: Create a fundraising plan

If you have decided venture capital is right for your company then the next step is to plan how you will fundraise. The first aspect to plan is how much? This determines how much equity you will be giving up for this round. The price shouldn’t be a random amount or an amount you saw another company receive. Ideally you should fundraise enough in order to be profitable and reach milestones. Depending on the amount size you will be in a funding stage.

< $500,000 = Pre-Seed Stage

• Has MVP in development or planned. Has done market research with clear problem and solution.
• Zero to some initial traction. Waitlist, website views, followers, ect.
• Typical Equity size: 5-15%.
• Investors: FFF, Angel investors, Syndicates, Micro VCs, Accelerators, Venture Studios, Bootstrapping, Crowdfunding*, Grants.

$500,000 - $5,000,000 = Seed Stage

• Has MVP or Products launched or late stage development.
• Growing users, customers, earning monthly revenue. Found a strong market that they will scale in.