Fundraising

The process of raising money by selling equity — preparing, building an investor list, taking meetings, diligence, term sheet and close.

Example

Three to six months from preparation to money in the bank.

Start with nine to twelve months of runway, not three. Run meetings in parallel — being able to walk away is your only real leverage.

Venture capital (VC) — Professional investors who manage a fund of other people's money and invest it in high-growth startups in exchange for equity.
Term sheet — A short, mostly non-binding document setting out the main terms of an investment before the full legal documents are drafted.
Pitch deck — A short presentation covering problem, solution, product, market, traction, model, competition, go-to-market, team and the ask.
Due diligence — The investigation a serious investor or acquirer runs before completing a deal — financial, legal, technical, commercial.
Valuation — The agreed price of the whole company, used to work out what percentage an investment buys.