Startup Fundraising Guide
Overview
As you set out on your fundraising journey, I'm thrilled to extend my best wishes to you. In the spirit of entrepreneurship and innovation, may this endeavor not just be a quest for capital, but a journey of learning, growing, and making meaningful connections.
Remember, fundraising is not just about the money, it's about finding the right partners who believe in your vision as much as you do. If you need deeper insights and guidance, do check out Bonny Morlak's website for expert startup coaching. And for more details about this guide or the Tech Startup Fundraising Pack, Multipasss is just a click away. Embrace this challenge with the same enthusiasm and relentless optimism that defines great entrepreneurs.
Best of luck!
Content
Outreach & Pitching Strategy
Generally speaking the 10 slide Kawasaki deck is high-level on purpose to stimulate questions and dialogue with the desired outcome of securing a first meeting.
In the first meeting you can use the very same deck but add more info verbally as well as answering questions. Collect new questions in every meeting you have and create one or more slides to answer each question in more detail - those slides go into the appendix after the 10 slides.
After each first meeting you will leave/send a follow-up deck that has the appropriate appendix slides with answers to the specific questions/objections raised in that meeting. You should also add the extra detail info you communicated verbally on each slide in the form of more detailed appendix slides with meaningful headlines.
In the second meeting the deck will be a bit more detailed (not too much though) and have the growing collection of accompanying appendix/explainer slides.
The decks creation timeline in order:
10-Slide Introduction Deck (this deck will put investors into a position to say yes or no to a meeting)
Introduction One-Pager (high level info only – less is more)
First Meeting Deck
Slides for Q&A Sessions
Second Meeting Deck (with ongoing addition of Q&A answer slides)
The Q&A answer slides will address preempted questions with data, sources, articles and graphics i.e. a chart supporting a break-even timeline or use of funds etc.
What to do in chronological order:
Create ‘10-Slide Introduction Deck’
If your potential investors are time-poor, create ‘Introduction One-Pager’ as a condensed version of the 10 slide deck. Don’t just make stuff smaller, but actually try to be even more to-the-point and concise.
Create ‘First Meeting Deck’ , leave an empty slide after 10 slides and add all your Q&A slides after – remember what slide answers what questions, so you don’t fumble around in the meeting.
If applicable, update your Angellist profile with latest pics, images and messaging (All team members and company profile)
If applicable, update your Crunchbase profile with latest pics, images and messaging (All team members and company profile)
If applicable, update your LinkedIn with latest pics, images and messaging (All team members and company profile)
Create your own personal master list of Angels and VCs (see some general lists below)
Decide on 10 Angels and VCs that are OK but not your top choices for first test mail-out
Send out test mails to those 10 Angels and VCs - personalized with one-pager attached
Collect feedback
Start ongoing creation of Q&A answer slides by anticipating questions or covering something you feel strongly about in more detail.
Apply changes if needed and send out to all Angels, VCs and other investors in your pipeline - send personalized with 10-slide intro or one-pager attached.
Arrange first meetings.
Prepare SAFE see YC resources here >>
Practice pitch 10x
Practice 15x more
Have first meetings online or in person. Present '1st meeting 10 slides + Q&A’ still with only high-level info on the deck to simply support your smooth pitch. Use Q&A slides if applicable.The desired outcome of the first pitch is getting a second meeting. It’s an intro only DO NOT pitch hard for investment. Ask questions and see if the investor is right FOR YOU. Email same deck plus appropriate appendix slides with answers to the specific questions/objections raised in that meeting.
Have meeting two to close the deal and get commitment to invest if Due Diligence is positive. Question: Assuming Due Diligence will be positive, would that put you in the position to invest?” Any hesitation here is a red flag. Get clarity what their exact conditions are for investment. Leave the SAFE term sheet.
Some notes:
You are looking for early stage investors who can add value beyond just dollars - ideally fitting into a group of investors to create synergy across the group. You are early-stage and pre-product-market-fit (PMF). Investors need to acknowledge this fact. The business has a healthy chance of success but there are no guarantees. The Seed round will largely be spent on finding PMF and with that trigger round A.
Getting an investor who expects a post product market-fit startup is dangerous as their judgment and advice will easily be wrong a lot. Pre PMF and post PMF require vastly different approaches.
I would stay clear of creating concrete financial goals before PMF - all calculations should demonstrate your current thinking process, have worst, normal and best scenarios and are a general guideline only. Do not spend a lot of time crunching numbers for the investor. It isn't our core skill and we will probably get it wrong. Let them come to their own conclusions.
Unless they want to invest and take on the BOA role in a Financial Advisor capacity. That would be smart money and come in handy at later rounds.
Pitch preparation
Watch this:
Emotions make deals
Understand that investors are just people. People make decisions 80% based on their emotions 20% on justifying that emotion with logic. They will invest because they love the product, market opportunity and team (YOU).
How emotional are people in different countries?
https://www.washingtonpost.com/news/worldviews/wp/2012/11/28/a-color-coded-map-of-the-wo rlds-most-and-least-emotional-countries/
Investor Lists
Overview
Angel Investors
AngelList
AngelList should be your first option when searching for an angel investor. This website has a large database of angel investors and startups, and it allows you to filter your search by location, industry, and more. There are over 5 million members on AngelList and over 100,000 startups, employers, and investors. Startups can even connect the platform to their social media accounts to receive recommendations to grow their network.
Members are able to raise funds from angel investors for free after making a profile for their company. Then, they can message investors and connect with them through the website. Startups even have the option of finding employees and workers through the platform. There are engineers, data scientists, product managers, and more on the platform.
Gust
Using Gust, entrepreneurs gain access to a platform that includes everything they need to succeed and scale their businesses. There are over 80,000 investment experts and 800,000 companies all over the world that use Gust. This website has been used to raise over $50 billion in funding. Gust even includes a service called Accelerate, which assists in launching a product and covers all legal blocks.
Gust provides entrepreneurs with resources such as a CRM, investor communications, and legal documents. They also offer free access to their online community, which includes a forum and blog posts. This website is best for entrepreneurs who are looking for a one-stop shop when it comes to finding resources and investors. Any entrepreneur with little experience obtaining an angel investor will enjoy the convenience of gust.
Angel Investment Network
You won't find a larger group of angel investors in one place than you will with Angel Investment Network. This website has over 300,000 investors and has helped entrepreneurs raise over $300 million. In addition, entrepreneurs can search for investors by location and industry. A large number of investors makes it ideal for businesses of all industries and markets to join.
This website is different from others because it also provides resources such as a blog, forum, and articles on how to raise capital. They also offer fundraising courses that help entrepreneurs learn more about the process of obtaining an angel investor. This website is perfect for entrepreneurs who are just starting their journey to raise capital and don't already have a large network.
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Angel Capital Association
Angel Capital Association is unique in that it functions as a non-profit trade association. This website is perfect for entrepreneurs who want to connect with a group of highly-vetted and qualified angel investors. There are over 15,000 members in the Angel Capital Association from all over the world, including Canada, South America, and the Middle East. Although, they largely concentrate on investors from the USA.
The platform also offers professional development as part of its membership. They have an online community, webinars, and conferences that entrepreneurs can attend. This website is best for entrepreneurs who want to work with angel investors that believe in the sustainability of the industry. The advocacy of the ACA with decision-makers helps protect the rights of angel investors.
Angel Forum
Angel Forum is another nonprofit organization that focuses on the Canadian market. It is essentially a marketplace for entrepreneurs and angel investors to connect. They have a selective process for entrepreneurs who want to join and present at their events. Startups can join the platform for free, but angel investors are required to pay a $315 yearly membership fee. Each founder has ten minutes to pitch and ten additional minutes for a Q&A.
This website offers more than just the connection between entrepreneur and investor. Entrepreneurs can learn about the condition of BC's early-stage ecosystem and engage with professionals in the same field. The platform allows social media integration to connect with people you may already know.
Funded
Funded is more than just a place to find angel investors; entrepreneurs are able to access a wealth of resources that help launch, expand, and create businesses with investors. The company has received several awards for its commitment to helping entrepreneurs succeed. They even have an A+ rating from the Better Business Bureau.
The Funded Lender Match feature helps connect founder pitches to the right investors quickly. By creating a profile, startup founders are able to connect with people, businesses, and investors. This can include angel investors, venture capitalists, private equity firms, and seed capital. What makes the platform nice is investors don't have to pay anything to join. There are also opportunities for founders to seek alternative forms of funding like microloans.
Envestors
Envestors works similarly to many other angel investor platforms in that it helps connect startups with potential investors. However, what makes this website different is it also provides information about the latest news, events, and resources for entrepreneurs and is based in the UK. They have a wide range of services, such as market reports, subscription services, and an academy. The platform has over 4,000 angel investors and has helped facilitate more than 500 investments into various firms over the years.
The website has been operational for over 15 years and has helped raise over £100 million for startups. They have a team of professional advisors that help entrepreneurs with their pitches and business plans. This is a great website for entrepreneurs who want to be well-informed about the latest news in the startup industry as well as have access to resources that can help them succeed.
Golden Seeds
In 2021, female founders of companies only secured 2% of the venture capital in the US. It's the smallest share since 2016 and a sign that the industry lacks women entrepreneur resources. Golden Seeds addresses the issue by creating a network of over 340 angel investors focused on investing in women-led businesses. Women can access the Golden Seeds network to receive guidance on developing their businesses faster.
The organization requires companies who are seeking funding to have at least one woman in a C-suite role or be led by a woman. The company has successfully invested over $170 million in more than 225 different women-led businesses. Golden Seeds have a number of meetings and events throughout the year that help connect women entrepreneurs with investors as well as provide resources and advice.
Wefunder
Wefunder was created through a JOBS Act program and allows investors to fund entrepreneurs with as little as $100. The platform works similarly to a crowdfunding site like Kickstarter, but investors receive equity in the company instead of rewards. Wefunder has helped startup companies raise over $616 million and has helped over 2,700 entrepreneurs. Startups using the company can raise anywhere from $50,000 to $5 million.
The website is easy to use and provides a lot of information about each startup that is seeking funding. This includes the amount of money they are looking to raise, how much they have raised so far, their business plan, and more. Wefunder is a great option for entrepreneurs who are looking to raise a smaller amount of money and don't mind giving up equity in their company.
FundingPost
FundingPost has been around for over 19 years and has helped startup companies raise millions of dollars through angel investors. They offer a number of resources for entrepreneurs, such as an online database of investors, events, and articles. FundingPost also offers a number of services that help connect startups with investors, like roundtable events, venture guide magazines, and the venture exchange.
The roundtable events are where entrepreneurs can connect with over 500 people or participate in the pitch competition to secure funding that day. There are dozens of vendors, guest speakers, the pitch competition, awards, demos, as well as an open bar. The events are hosted regularly and even include food — all for the price of one ticket.
Leapfunder
Leapfunder has been committed to helping entrepreneurs seek funding for years and specializes in early-stage funding. The convertible note is their core offering, but investors only need a minimum investment of $1,000 to start. It's a Dutch company that helps with funding but doesn't currently offer entrepreneurs any access to financial guidance. The company focuses on entrepreneurs and angel investors in the European area.
There are no complexities involved with investing, unlike traditional angel investments. Instead, it's a simple, fast, and easy process that has helped over 500 companies raise millions of dollars. They have a wide range of investees from all different industries, which makes it easy for entrepreneurs to find the right match. Leadfunder even organizes events where entrepreneurs can connect with investors as well as other entrepreneurs in person.
US Investment Network
As the name would imply, US Investment Network concentrates on investments that are based in the United States. They have a wide range of experience and have helped startup companies raise millions of dollars. The website is easy to use and provides a lot of information about each startup that is seeking funding. This includes the amount of money they are looking to raise, how much they have raised so far, their business plan, and more.
The platform allows individual angel investors, as opposed to angel groups, to make the process less challenging. US Investment Network also has a number of events that help connect startups with investors as well as other entrepreneurs. These events are held all over the country, providing a great opportunity to network and learn more about the process.
iAngels
Shelly Hod Moyal and Mor Assia both started iAngels as a way to help other women get into angel investing. They're based in Israel but have expanded to include investors from all over the world. The company gives investors exclusive access to some of Israel's best tech and scaleup investment opportunities.
iAngels is easily one of the most active investors in the Israeli tech ecosystem. The company currently has over 6,000 active startups, with over 1,400 new startups added each year. This makes it ideal for investors who want to be at the forefront of new and upcoming technologies. The company helps investors build a customized venture portfolio that is led by some of the country's best entrepreneurs.
LetsVenture
LetsVenture is a private market ecosystem for more than 400 businesses in India. The platform has over 19,000 investors from 60 different countries and over 34,000 registered businesses. In total, the company has funded more than $140 million to startups and entrepreneurs. Some of the biggest names in financing, including Accel, Ratan Tata, and Chiratae Ventures, are attached to LetsVenture.
Tech Coast Angels:
Surf's up with these Southern California big fish! Tech Coast Angels aren't just about dishing out dollars; they're your mentors, network expanders, and business gurus. They're big on diverse industries, so if you're in medtech, SaaS, or IoT, ride these waves!
Pasadena Angels:
Nestled in Altadena, CA, these angels are all about those high-growth, scalable startups. They've got a sweet spot for Cali-based ventures, especially in early stages.
Alliance of Angels:
Seattle's finest, raining over $10 million annually on more than 20 startups. Early-stage, Northwest-based, IT-focused – these are your guys.
New York Angels:
The Big Apple's finest, a crew of ex-entrepreneurs and business leaders. They're into Northeast startups, early stages, and tech. Also, they're nurturing future angels – how cool is that?
Band of Angels:
Silicon Valley's original gangsters in angel investing. They're high-tech honchos investing in 20+ startups a year. Tech and life sciences are their jam.
Hyde Park Angels:
Chicago's own, with a penchant for midwest startups. Think industrial tech, IT, and financial services. They're all about seed and early stages.
Sand Hill Angels:
These Silicon Valley veterans are alpha/beta stage aficionados, solving well-defined problems. Tech startups, this is your haven.
New World Angels:
Florida's rising stars since 2014 with a $20 million track record. Biotech, tech, and local startups, take note!
Queen City Angels:
Over two decades, these angels have sprinkled $110 million across various startups. They're big on tech, advanced materials, and life sciences.
Park City Angels:
Utah's pride with a 50+ strong investor team. They've pumped over $80 million into startups, focusing on healthcare and tech.
Blue Tree Allied Angels:
Pennsylvania's finest, targeting startups seeking $200,000 to $3 million. High-growth is their middle name.
Launchpad Venture Group:
Boston-based science and tech gurus with a $125 million impact on over 150 startups.
Marc Andreessen:
This legend's not just one-half of Andreessen Horowitz; he's a Silicon Valley rockstar. With 37 investments and 29 exits, Marc's portfolio is like a tech hall of fame. Think Halo Neuroscience and Canonical Crypto – that's where Marc plays.
Naval Ravikant:
The mastermind behind AngelList, Naval's the guru of startup investing. 191 investments and 60 exits, including stars like Twitter and Uber. He's got the Midas touch!
Fabrice Grinda:
The internet entrepreneur turned angel, Fabrice is the OLX guy who knows how to spot winners. 213 investments and a whopping $300 million in exits – he's got the golden eye.
Kim Perell:
From CEO to angel, Kim's journey is inspirational. 25 investments, 12 exits, and a whole lot of wisdom. She's a Pepperdine alum who's making waves in the startup world.
Paul Buchheit:
The man who gifted us Gmail, Paul's more than a one-hit wonder. He's a Y Combinator partner with a hefty 157 investments and 64 exits. Silicon Valley's heavy hitter!
Ron Conway:
They call him the "godfather of Silicon Valley" for a reason. 95 investments, 58 exits, and a portfolio that reads like a who's who of tech giants. Ron's the angel investor you want in your corner.
Esther Dyson:
Flying high in healthtech and biotech, Esther's 96 investments and 29 exits show her sharp eye for transformative tech. She's the executive founder of Wellville, making big waves in wellbeing.
David Tisch:
This managing partner at BoxGroup knows his stuff. 82 investments, 46 exits, and a knack for picking New York's finest like ClassPass and Houseparty. David's the East Coast angel to watch.
Gary Vaynerchuk:
Loud, proud, and incredibly savvy, Gary's 65 investments and 31 exits are just part of his story. A bestselling author and digital marketing wizard, he's a force in the angel world.
Joanne Wilson:
Joanne's eclectic career path has led her to over 90 company investments. From Union Station to Clutter, she's got a keen eye for potential, and her blogs and podcasts show her passion for life.
Mark Cuban:
Shark Tank star and Dallas Mavericks owner, Mark's not just about basketball and TV. With over $100 million in annual investments, he's a major player in the angel world.
Reid Hoffman:
The LinkedIn co-founder, Reid's 70 investments and 35 exits show his knack for spotting winners. He's a Greylock partner and an early investor in Facebook and Zynga.
Marissa Mayer:
From Google to Yahoo, Marissa's been a tech trailblazer. Now, with 22 investments and 10 exits, she's making her mark as an angel investor too.
Alexis Ohanian:
Reddit's co-founder isn't just an internet icon. With 145 investments and 41 exits, Alexis is a champion of startups, backing companies like Hipmunk and Breadpig.
Paige Craig:
Co-founder of Outlander Ventures and a partner with a purpose, Paige's 41 investments and 18 exits demonstrate his keen eye for potential in the tech world.
Max Levchin:
A PayPal original and founder of Affirm, Max's 80 investments and 30 exits are testament to his deep understanding of tech startups. He's a Silicon Valley staple.
Alex Chesterman:
UK's angel hero, Alex's 28 investments show his commitment to early-stage startups. He's also the brains behind Cazoo, making big waves across the pond.
Amos Ben-Meir:
Silicon Valley's hidden gem, Amos' 187 investments and 3 exits reflect his commitment to startups. He's a Sand Hill Angels VP and a Green Visor Capital partner.
Auren Hoffman:
With 74 investments and 35 exits, Auren's a business powerhouse with a deep tech portfolio. He's the angel with a plan for every startup.
Alex Moskalyuk:
The entrepreneur who's seen it all, Alex's 88 investments show his dedication to early-stage companies. He's a co-founder of Zirtual and the brain behind Pillow.
Benjamin Ling:
The man behind Bling Capital, Benjamin's 73 investments show his commitment to early-stage companies. His portfolio includes Robinhood, Affirm, and AppDirect.
Roger Ehrenberg:
A data-driven investor, Roger's 22 investments and 14 exits show his keen sense
Brad Feld:
With nearly 35 years in the game, Brad's 142 investments prove his staying power. A Foundry Group co-founder, he's a mentor to many.
Aydin Senkut:
A "super angel" and Felicis Ventures founder, Aydin's 117 investments demonstrate his keen eye for tech potential. He's a regular on Forbes’ “Midas List”.
Keith Rabois:
A Founders Fund general partner, Keith's 57 investments and 35 exits show his expertise in consumer and enterprise tech. He's a Silicon Valley veteran.
Mark Goines:
An entrepreneur and angel, Mark's 23 investments and 15 exits show his focus on financial tech. He's a TurboTax trailblazer.
Kevin Rose:
The mind behind Digg and Revision3, Kevin's 23 investments and 14 exits show his entrepreneurial spirit. He's a partner at True and a startup sage.
Chris Sacca:
A Shark Tank regular and Twitter, Uber, and Instagram early investor, Chris' 34 investments and 20 exits are just part of his Lowercase Capital story.
Bob Pasker:
AngelPad's founding partner and a Google alum, Bob's 27 investments and 19 exits show his acumen. He's a Silicon Valley mentor.
Pejman Nozad:
Pear Ventures' founding managing partner, Pejman's 21 investments and 12 exits show his knack for spotting tech gems. He's an angel with a keen eye.
Cambridge Angels: U.K.-based high-net-worth investors with over £150 million in 110 companies.
Focus: B2B.
Ticket size: £150K - £1.5M.
Process: Email pitch → Zoom session → Dinner presentation.
RobinHood Ventures: Comprising over 70 investors with diverse past careers.
Focus: Software, Biotech, Consumer Products, Cyber Security, FinTech, HealthTech.
Ticket size: $250K - $500K.
Process: Online application → Monthly review → Due diligence.
Keiretsu Forum: A global network since 2000, investing over $1 billion in 950+ companies.
Focus: Tech, Life Sciences, Real Estate.
Ticket size: $250K - $500K.
Process: Direct member investment through online application.
Alumni Associated Angel Investing Groups
A list focusing on university alumni startups.
University of California, Berkeley: Berkeley Angel Network
UCLA: UCLA Ventures
Massachusetts Institute of Technology (MIT): Multiple chapters across MA, CA, DC, NY
University of Cambridge: Cambridge Angels and Networks
Harvard University: HBS Angels, with chapters globally and in NY, CA, MA
Stanford University: Stanford Angels and Entrepreneurs, with chapters in CA, UK, India
National University of Singapore: NUS Alumni Ventures
University of Chicago: Chicago Booth Angel Network in CA, IL
University of Pennsylvania: Wharton Alumni Angels
Yale University: Yale Angels
Columbia University: Columbia Angel Network and Group
Johns Hopkins University: Blue Jay Syndicate
Top Individual Angel Investors
A list updated regularly with key players in the angel investing world.
U.K.: Simon Hulme, Professor and Angel Investor
U.S.: Nat Friedman, former CEO Github; Daniel Gross; Paul Buchheit; Mark Cuban; Alex Ohanian Sr.; Naval Ravikant; Jason Calacanis; Ron Conway
Global: Fabrice Grinda
Australian funding resources:Angel investor list and VC list by the fine people at Airtree Ventures.
VCs
Americas