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founders
Metrics and data
How to Calculate Runway & Burn Rate
Building a venture-backed startup is difficult. On top of building a useful product, hiring a great team, and attracting qualified customers, founders need to be a 1 person finance team (in the early days).
When just starting and scaling a business, founders likely have no dedicated finance team in-house to lean on for insights. Founders need to rely on their own financial savviness (hopefully with the help of an accounting firm) to keep finances in check.
In order to efficiently grow your business, you need to have an understanding of your cash position. Learn more about calculating and tracking your startup runway below.
Related resource: The Only Financial Ratios Cheat Sheet You’ll Ever Need
What is Startup Runway?
A startup runway is exactly what it sounds like — it is the amount of time (generally in months) a startup can operate before it runs out of money. For a profitable business, this metric likely means little. However, an early-stage startup that has yet to monetize its product or service will need to pay close attention to its runway.
Related Resource: The Understandable Guide to Startup Funding Stages
Your startup runway will inform how you hire, develop products, and finance your business in the coming months and years.
What is Startup Burn Rate?
The first component of your startup runway is your burn rate. According to Investopedia, “The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations. It is a measure of negative cash flow.”
Related Resource: Startup Metrics You Need to Monitor
Simply put, the burn rate is the amount of money your business is “burning” every month. For example, if your business is spending $5,000 a month on salary, $1,000 on software, and $500 on office space but has yet to bring in any revenue your burn rate would be $6,500. Your burn rate is generally the input that you can dictate the most when it comes to extending your cash runway.
Formula for Startup Runway
Calculating your runway is simple and something that every startup founder should hone, especially in the early days. To calculate your runway, simply take your beginning cash balance and divide it by your monthly net burn rate as shown below:
Related Resource: 6 Metrics Every Startup Founder Should Track
Real-Life Example of Startup Runway
For a real-life example of calculating a startup’s runway — let’s take an early-stage venture-backed company that raised a few million dollars in VC money and has been at it developing its product. At the beginning of the most recent period, their cash balance is $320,000 and their monthly burn rate is $20,000. You’d simply divide $320,000 by $20,000 to get a runway of 16 months.
How Much Startup Runway Should You Have?
There is no right or wrong answer when it comes to determining how long your cash runway should be. Your company’s stage, current market, and business model might impact how long your runway should be. As a general rule of thumb, it is suggested that seed and series A companies have a runway of 12-18 months
Formula for Burn Rate
Like startup runway, burn rate is a straightforward formula — especially for founders who have their cash statements and metrics in place. To calculate your burn rate, simply take your beginning cash balance, subtract your ending cash balance and divide that by the # of months over the given period. Typically it is better to calculate your burn rate over a longer period of time as a single month could be lumpy as expenses vary from month to month.
Related Resource: What is a Startup’s Annual Run Rate? (Definition + Formula)
Real-Life Example of Startup Burn Rate
For a real-life example of calculating a startup, let’s take a startup that raised $3M and already had $200k in the bank bringing its cash balance to $3.2M. Fast forward 6 months and their cash balance is now $2.6M. Using the burn rate formula that would mean their monthly burn rate is $100K ($3.2M – $2.6M = $600K / 6 months = $100K) as shown below:
Ways to Extend Startup Runway and Reduce Burn Rate
As we mentioned earlier, the easiest way to manipulate your runway and extend your runway is by controlling your monthly burn rate. Learn more about how to extend your runway below:
Drive More Sales
First and foremost, the best way to extend your runway is by driving more sales. Of course, this is likely already a goal of your business (unless your business is not ready to monetize your product or service). By driving more sales you’ll be able to increase your cash balance and in turn, extend your startup’s runway.
Cut Non-Essential Expenses
The most straightforward way to extend your startup’s runway is by cutting non-essential expenses. This can feel difficult as it can impact your team’s day-to-day operations — however, this can be done in a thoughtful manner that extends your runway. For example, consolidating software or removing marketing channels that might not be performing well is a good way to extend the runway.
Utilize Corporate Credit Cards and other Funding Sources
You can also get creative with the financing options that your business leverages. While venture financing might take months to get cash into your bank account, new funding options could be of interest. Learn more about alternative ways to fund your business below:
Related Resource: Checking Out Venture Capital Funding Alternatives
Track Runway With Visible
Runway is a vital metric for early-stage startups. Every startup founder should be in tune with their runway and use it to inform spending decisions and strategy for the coming months and years.
Tools and software are a great way to keep tabs on your finances. Track key metrics, send investor Updates, and track the status of your next fundraise with Visible. Give it a free try for 14 days here.
Related resource: What is Internal Rate of Return (IRR) in Venture Capital
founders
Fundraising
Bootstrapping 101: Pros & Cons of Bootstrapping Your Startup
Founding and growing a startup is difficult. On top of developing a great product or experience, founders need to hone all aspects of their business — financing, hiring, etc.
Founders are faced with countless funding decisions – none of which come easy. On the Visible Blog, we oftentimes talk about venture capital. However, there are other options that are better suited for some companies. One of which is bootstrapping.
Related Resource: Alternatives to Venture Capital
Learn more about bootstrapping and what it means for startup founders below:
Defining Bootstrapping in the Startup World
As defined by the team at Investopedia, “Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when they attempt to found and build a company from personal finances or the operating revenues of the new company.”
Related Resource: Bootstrapping a Beauty Brand with Aishetu Dozie, CEO of Bossy
On the VIsible Blog, we generally write about how founders can leverage outside financing (like venture capital and angel investors), to fund their business. Bootstrapping foregoes outside funding and requires a founder to leverage their personal savings, credit, time, and customer revenue.
The Pros and Cons of Bootstrapping
Bootstrapping can be extremely beneficial for founders. However, the benefits come with real risks. Learn more about the pros and cons of bootstrapping below.
Related Resource: Building a Calm Company with Tyler Tringas
Pros of Bootstrapping
Bootstrapping is a huge bet for a founder to place on themself. By steering clear of outside funding, founders will need to leverage their own time and resources to build their business. However, a founder placing their own resources on the line does not come with the opportunities to benefit. Learn about the pros of bootstrapping below:
It Allows Owners to Retain Full Ownership of Their Company
One of the downsides of taking on venture funding is the loss of ownership and equity. One of the major upsides of choosing to bootstrap a business is the exact opposite. When choosing to bootstrap a business, founders retain full ownership of the business and will experience all of the upsides in the event of a successful exit or deal.
It Makes Owners Create a Model That Works
When bootstrapping a business there are no “safety nets.” While most founders do not need a forcing function to help them prove a model, bootstrapping heightens the stakes. Bootstrapped founders are risking their own resources so it is vital that they build a successful business.
Path to Profitability
A venture capitalist’s job is to create outsized returns for their limited partners. This means that VCs are in search of companies that can grow into huge companies to create returns. Chances are that outside investors will push for quick growth.
When bootstrapping, founders will likely have a strict budget and need to grow within their own means. While it can possibly limit the possibility of hypergrowth, it can be a great way to grow sustainability and build a long-term company.
Cons of Bootstrapping
Just like any funding option, there are cons of bootstrapping as well. Weighing the pros and cons is a great way to help a founder determine what funding option is right for their business. Learn more about the cons of bootstrapping a business below:
It Can Be Riskier
As we laid out above, one of the biggest perks of bootstrapping a business is maintaining ownership and equity. On the flip side, this means there is no one else to share risk with a founder.
When bootstrapping a business, a founder will put their own resources on the line. If something goes south, it not only impacts the business but has the ability to impact a bootstrapped founder’s personal finance as well.
Bootstrapping Only Offers Limited Support
Being a founder is difficult. There are very few individuals who understand what it takes to find and grow a business. Because of this, it is important for founders to learn from their peers, investors, and leaders in the space. This comes naturally with some funding options. For example, venture-backed companies can lean on investors for help and future capital. For bootstrapped founders, chances are they will have fewer natural networking opportunities with investors and other founders.
It Requires Many Strengths
When building a company, leaders need to have strengths across the board – they might be a technical founder or great marketer, etc. Many founders, they can lean on co-founders and their investors to help balance their weaknesses. For a solo founder or bootstrapped founder, they will need to rely on themselves across the board.
Stages a Bootstrapped Company Goes Through
Companies go through different stages and lifecycles. At their core, most startups follow a similar journey. For venture-backed and bootstrapped companies, this journey might look slightly different but is similar at their core. Learn about the basic stages a bootstrapped company goes through below:
1) Starting Stage
When starting a bootstrapped business, it likely looks no different than starting any other business. The founder or founding team likely has an idea or big problem they’d like to solve. From here, there are the formalities of setting up a business.
However, a bootstrapped founder will have the ability to pursue their new business on the side (or dedicate they full day-to-day). Because there are no outside stakeholders, the pace at which a bootstrapped founder launches is solely up to them.
2) Customer-Funded Stage
Once a bootstrapped founder has built a product and determined channels for distributing their product, they can begin to bring in revenue from customers. While bootstrapped founders can work at their own pace, bringing in customer revenue is vital as it is the likely source of financing and future growth.
3) Profitability & Growth
If a bootstrapped founder can build a product and find their first customers, the next step is profitability and growth. Because bootstrapped companies use their customer revenue to fuel their growth, it is incredibly important they are wise with their spending decisions as customers grow – they likely won’t have the cash cushion and safety net in the early days.
Find Out More Information on Bootstrapping
Bootstrapping can be a great way to fund and build a startup for many startup founders. At the end of the day, founders need to evaluate their funding options and determine what is right for their business. To learn more about bootstrapping and funding a business, subscribe to the Visible Weekly. We curate the best resources to help founders hire top talent, raise capital, and build great products. Sign up here.
founders
Fundraising
6 Helpful Networking Tips for Connecting With Investors
Fundraising is a challenge. We find that the most successful founders treat a fundraise like a traditional B2B sales process. It is a game of relationships and is important that you are connecting with and finding the most qualified investors for your business — just as a sales and marketing team finds the best leads for their product.
Related Resource: 9 Tips for Effective Investor Networking
In order to help you better connect and find the right investors for your business, we’ve put together a quick guide below:
Understanding the Different Types of Investors
First things first, you need to understand who you are talking to. At the highest level, there are different types of investors that are willing to fund privately held companies. From here, you’ll be able to take things a level deeper and identify the specific investor and firms that are best suited for your business.
Related Resource: How To Find Private Investors For Startups
Check out some of our tips for connecting with different types of investors below:
Angel Investors
A common type of startup investor is the angel investor. As we put in our post, How to Effectively Find + Secure Angel Investors for Your Startup, “An angel investor is generally a wealthy individual who is looking to invest spare cash in an alternative investment.” A few tips when it comes to connecting with angel investors:
Warm introductions — find if anyone in your network can make an introduction
Social media — some angel investors might have an online presence. Check out Twitter, LinkedIn, etc. to see if there are any in your network
VC Firms
The most common type of startup investor is a venture capital firm. As defined by Investopedia, “A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.” VCs are professional investors so it is important to have a strategy when finding and pitching them. A few tips below:
Warm introductions — like angel investors, use your immediate network to find introductions to VCs in your network. Existing investors, other founders, and customers can be great sources of warm introductions
Cold outreach — If you do not have any connections to a VC fund, you can use cold outreach. To learn more, 3 Tips for Cold Emailing Potential Investors + Outreach Email Template.
Events — Many VC funds host events dedicated to founders, or attend larger startup events. Leverage these as an opportunity to meet and connect with targeted funds.
Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors
Banks
Traditionally, banks are a source of capital for businesses. With early-stage startups, bank loans have become less common as they are not able to take the risk on early-stage companies. However, for later-stage and proven startups, bank loans can be a strong funding option. A few things to keep in mind:
Strong performance — your business needs to demonstrate a strong track record and predictability that you can pay back the bank
Collateral & cash — having high-value collateral and a strong cash position will increase the likelihood that a bank approves your leone.
Alternative Investors
New funding options have taken the startup world by storm over the last few years. Depending on your business and model, some of the newer funding options can be an option. Check out a few of the common options below (from our post, Checking Out Venture Capital Funding Alternatives)
Pipe — As their website puts it, “Pipe turns MRR into ARR.” So how does it work? Pipe looks at your monthly contracts and offers a cash advance on the annual value of those contracts. In turn, they will take a small % of that contract for offering the cash advance.
Calm Company Fund — Calm Fund uses their own financing instrument called a Shared Earnings Agreement (SEAL). Essentially, SEALs are geared towards bootstrapped companies that are profitable or approaching profitability.
Corl — Rather than explaining it ourselves we’ll let the Corl website explain what they do. “Corl uses machine learning to analyze your business and expedite the funding process. No need to wait 3-9 months for approval. Find out if you qualify in 10 minutes.”
6 Helpful Tips for Connecting with Investors
No matter the type of investor, there are common tips and strategies that you can use to connect with investors. Making warm introductions, or connections through people in your network, is typically the best way to get an introduction to an investor. However, attending events, networking with peers, cold outreach, and your current investors are great opportunities. Check out some tips below.
Related resource: How to Get Into Venture Capital: A Beginner’s Guide
1) Use the Right Tools or Platform
Just as sales and marketing teams have dedicated tools for their process, so do founders that are fundraising. By using a tool to find and connect with qualified investors, you’ll set yourself up for success and smoother fundraise.
At Visible, we offer a free investor database, Visible Connect, that allows you to filter by the fields and properties that are most relevant to your business. For example, you can search by their investment geography, stage, market, and more. Give it a try here.
From here, you can add your investors directly to a Fundraising Pipeline in Visible. This is the headquarters of your fundraise and allows you to keep tabs on the status of conversations and pitches throughout your fundraise. Give it a free try for 14 days here.
Related Resource: A Step-By-Step Guide for Building Your Investor Pipeline
2) Target the Right Investors
Spending time on the right investors is a vital part of a successful fundraise. Just as a sales team would only spend time on the most qualified leads, the same is true of a fundraise. By building out a profile of what your ideal investor looks like, you’ll be able to focus on the investors that truly matter to your business.
Learn more about determining your ideal investor profile in our post, Building Your Ideal Investor Persona.
3) Build a List
Once you’ve determined who the right investors are for your business, you need to build a list. Over the course of a fundraise, you will hear countless “Nos” so it is important to have a list of investors to speak with. For an early-stage company, we generally suggest having somewhere around 50 investors to speak with. Brett Brohl of Bread & Butter Ventures recommends talking with at least 60:
4) Tell a Data-Backed Story
At the end of the day, investors want to fund companies that have the ability to turn into huge exits and create returns for them and their LPs. In order to help paint the picture of your potential for growth, you need to use data that helps supplement the story.
When discussing with potential investors, you do not need to go overboard with the data you are sharing. Stick to a metric or 2 from your own business that demonstrates traction. You can even share compelling data from the market that shows why you are set up for success.
Related Resource: How to Model Total Addressable Market (Template Included)
5) Reach Out
Having your assets in place is only half the battle. Having a concise plan and tone for reaching out to potential investors is a must. Generally, finding warm introductions to your ideal investors should be the first line of defense. If you are unable to find warm introductions, don’t be afraid to use cold outreach.
Related Resource: 3 Tips for Cold Emailing Potential Investors + Outreach Email Template
Learn about what Ezra Galston of Starting Line Ventures likes to see in cold outreach below:
As we previously mentioned, chances are you will be talking to 50+ investors over the course of a fundraise. It is important to have a game plan and process in place to track conversations and the status of your raise. With Visible, you can find investors, add them to your pipeline, and track the status of your fundraise all from 1 tool. Give it a free try for 14 days here.
Related Resource: How To Write the Perfect Investor Update (Tips and Templates)
Visible Can Help You Connect With The Right Investors
Fundraising is comparable to a traditional B2B sales and marketing process. Just as any sales process starts by finding the right leads, so should a fundraise. Use Visible Connect, our free investor database, to find the right investors for your business. Give it a try and start searching for investors for your business here.
founders
Fundraising
Emerging Fund Managers You Want on Your Cap Table
“Rolling funds, the rise of solo capitalists, crowd syndicates and team-based seed funds all scream one thing in unison: venture capital is growing and getting unbundled at the same time.” TechCrunch
Emerging Managers are Venture Capital Fund Managers whose assets under management (AUM) range from $25 – $100M and have typically raised less than three funds. These types of managers are playing an important role in the ‘growing and unbundling’ of the Venture Capital landscape as they oftentimes focus on previously overlooked founders and markets. Emerging managers bring unique perspectives and experiences to the world of Venture Capital which is why startups should have a solid understanding of this type of investor as they start their fundraising journey.
How are Emerging Managers Different Than More Established VCs
If we compare established fund managers to emerging fund managers, a known investment claimer holds very true, “past results are not an indicator of future success,”– According to Pitchbook research “Nearly 18% of first-time funds nab an internal rate of return (IRR) of 25% while later funds only exceed that number about 12% of the time”.
Many respected LPs have also reported that emerging managers tend to outperform more established funds that are larger scale.
Other distinguishing attributes of Emerging Managers include:
They generally write smaller checks
They’re more hands-on with their fewer number of investments
They’re focused on brand building
They’re agile and less organizationally bureaucratic
There has historically been a high-risk bias on emerging managers because of some constraints that they faced in the past with regards to limited partners, but as they “consistently outperform industry benchmarks” you can see that isn’t holding Emerging Managers back from growing rapidly year over year.
Why Would You Want Emerging Managers On Your Cap Table Instead
Emerging Managers usually come with years of experience from larger funds where they had the chance to learn and work with the big players. Since the IRR of their new funds are the key indicator of success for LPs, they are highly motivated to make their investments successful.
As they are also more agile, they are able to bring more innovation and ideas to the table which allows them to recognize and jump on new trends which takes more time for established VCs to react to.
The number of Micro VCs, which are also considered emerging managers, jumped 9x from 2012 to 2019, “The underpinning insight was that the “generalist” approach by legacy VC created an opportunity for bespoke firms that could better support founders at the early stage in their respective markets and that this would lead to improved outcomes.” Kaufman Fellows
Other benefits of emerging managers include:
They have more real-life experience that’s recent and relevant
They’re more engaged investors and are more motivated to help you out as they’re establishing their brand
“At the end of the day, LPs look for evidence that an emerging manager can, and will, identify the best companies in their area of focus, and be able to win those deals based on their approach, skills, and expertise. The best early-stage VCs bring tremendous value to their portfolio, creating a flywheel of entrepreneur referrals which in turn, fosters that GPs’ success, so they can build the next industry-leading franchise.” Crunchbase Ventures
They have more specialized knowledge pertaining to the focus of your startup.
“LPs typically look to avoid overfished ponds and overplayed deal channels, so you should make a compelling case for why they should follow you off the beaten path. The best EMs have a unique perspective within their area of focus. The prospective LPs you’re targeting need to agree that the approach and space you’re betting on is an exciting place to spend time.” Crunchbase Ventures
They serve as a pathway that enables more diversity in venture.
Emerging Managers include more women and racial minorities than in established VCs, which operate with “predominantly homogenous teams” that have been proven to yield poorer outcomes than in diverse teams.
“Emerging managers are grinders, hungry for success the way a young underdog is against a perennial winner in the sports world. This tightly aligns their goals with LPs – a strong return means both the manager and their partners win.” Gridline
How to Find Emerging Managers
Filter investors by AUM that are less than $100M and (pre) seed and Series A funding stage on our Connect Investor database
Emerging manager training programs (Recast Capital, Strut Consulting, Kauffman Fellows, and the VCI Fellowship for BIPOC First-Time Fund Managers)
Networking Events
Emerging manager communities (Transact Global, Raise Global)
VC Guide’s List of Emerging Managers
Emerging Managers to Check-out
Base Case Capital
Location: San Francisco, California, United States
About: base case capital is an early-stage venture capital firm focused on the next generation of enterprise software.
Investment Stages: Pre-Seed, Seed, Series A, Series B
Recent Investments:
Ashby
Supergrain
Fiberplane
Conscience
Location: Miami, Florida, United States
About: Conscience VC invests into early-stage, science-led consumer companies.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Aqua Cultured Foods
Last Gameboard
Wayfinder Biosciences
Atman
Location: New York, United States
About: We partner with inevitable people. We provide leverage, access, and acumen through aligned principles. We partner with founders at the pre-seed and seed stages. At Atman Capital, every founder in our egregore is a partner of the fund.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Chico.ai
Bamboo
Pipefy
NP-Hard Ventures
Location: Amsterdam, Netherlands
About: We support early teams in Europe and the US to build the infrastructure, tools, and decentralized platforms that simplify the way we work, by making technology more accessible and unlock creativity.
Investment Stages: Pre-Seed, Seed
Recent Investments:
tldraw
Universe Energy
eDRV
Empath Ventures
Location: Los Angeles, California, United States
About: Empath Ventures is a venture capital firm that mainly invests in psychedelic medicine companies.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Freedom Biosciences
MAPS Public Benefit Corporation
Pangea Botanica
Garuda Ventures
Location: San Francisco, Bay Area, California, United States
About: Garuda is an angel fund run by full-time operators Rishi Taparia and James Richards. We spend every day on the founder side of the table.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Paragon
ConductorOne
Arena
Lorimer Ventures
Location: Brooklyn, New York, United States
About: We’re a Brooklyn-based investment firm made up of founders, operators, and financial professionals with experience building and operating businesses from pre-revenue to post-IPO. We bring a founder-first perspective to each startup we back, and strive to be on a speed-dial basis with the founding teams we back.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Tyba
Circuit Mind
OatFi
m]x[v
Location: New York, United States
About: m]x[v Capital is an up and coming early-stage venture fund building momentum for the next generation of cloud disruptors. We bring a founder and operator perspective to the cap table, helping our founders build their vision, product, and teams.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Epoch
Mailmodo
Postscript
Brickyard
Location: United States
About: Brickyard is an early-stage capital and founder outpost backing builders.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Krepling
Joon App
IRON
Acquired Wisdom Fund
About: Acquired Wisdom Fund helps seasoned professionals create scalable technology products. We invest in early stage tech startups.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Achievable
NOCAP Sports
Angler AI
True Wealth Ventures
Location: Austin, Texas, United States
About: We see value in the impact of women. True Wealth Ventures invests in smart female entrepreneurs, from health innovators to sustainable solution pioneers. Women-led companies have proven they deliver higher returns. It’s time to invest in new perspectives.
Thesis: Women-led companies improving either human health or environmental health
Investment Stages: Pre-Seed, Seed
Recent Investments:
De Oro Devices
Reharvest Provisions
Aeromutable
CapitalX
Location: San Francisco, California, United States
About: CapitalX.vc – enterprise focused generalist with $100k – $500k initial checks in preseed/seed.
Thesis: Women-led companies improving either human health or environmental health
Investment Stages: Seed, Pre-Seed, Series A
Recent Investments:
Simplifyber
Impossible Mining
Front Finance
Overlooked Ventures
About: We support founders who operate early-stage technology companies that are historically overlooked and provide them capital, resources, and connections to scale their business. We’ve been in your shoes. We’re tech founders with 10+ years of experience running companies and making deals. Now we’re authentically supporting entrepreneurs with capital and a founder-friendly focus.
Recent Investments:
Pipe
Stagger
West Tenth
Chingona Ventures
Location: Chicago, Illinois, United States
About: Chingona Ventures invests in founders from backgrounds and industries that are not well understood by the traditional investor.
Thesis: Focus on industries that are massively changing and founders whose backgrounds uniquely position them to create businesses in growth markets that are often overlooked. Focus areas are in financial technology, female technology, food technology, health/wellness, and future of learning.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Cartwheel
Sigo Seguros
Encantos
Forum Ventures
Location: New York City, San Francisco, and Toronto, United States
Thesis: B2B SaaS; Future of Work, E-commerce enablement, Supply Chain & Logistics, Marketplace, Fintech, Healthcare
Investment Stages: Pre-Seed, Seed
Recent Investments:
Sandbox Banking
Tusk Logistics
Vergo
Check out Forum Ventures profile on our Connect Investor Database
Dream Machine
Location: Palo Alto, California, United States
About: Dream Machine is an opportunistic seed fund interested in consumer and frontier tech. It is founded by Alexia Bonatsos, the former co-editor-in-chief of Techcrunch and one of the earliest reporters to write about WhatsApp, Uber, Instagram, Airbnb and Pinterest. With Dream Machine, she hopes to help exceptional founders make science fiction non-fiction.
Investment Stages: Pre-Seed, Seed
Recent Investments:
TTYL
BlockParty
Powder
VamosVentures
Location: Los Angeles, California, United States
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Miga Health
Form Energy
Zócalo Health
Revent
Location: Berlin, Germany
Investment Stages: Series A, Series B, Series C
Recent Investments:
Resourcify
Noscendo GmbH
Sylvera
Spark Growth Ventures
Location: San Diego, California, United States
About: Spark Growth Ventures is a community driven, early & mid stage, vertical-agnostic, technology venture capital firm. Our mission is to support gritty and exceptional founders in their missions by bringing forth the combined value of our strong community. We are fortunate to have a global network of entrepreneurs, C-level relationships, subject matter experts, world-class talent, institutional investors, high net worth individuals and family offices, many of who are investors in our platform. Our team has several decades of global experience in venture capital, entrepreneurship, innovation, executive & board management, functional leadership and advisory work.
Thesis: Capital efficient and scalable business model rooted in tech enabled products and services solving real and large problems. Mission oriented and gritty founders are a must.
Investment Stages: Series A, Series B, Series C
Recent Investments:
Redcliffe Labs
Tab32
Placer.ai
Nomad Ventures
Location: Los Angeles, California, United States
About: Nomad Ventures is an LA-based Venture Fund focused on Early-Stage Marketplace businesses. The GPs (Chris Taylor and James Mumma) are entrepreneurs who have helped build some of the fastest growing startups in recent history (Uber, Uber Eats, Opendoor) and they support founders by providing both expertise and capital to build the next big tech businesses. ???? ???? ????
Investment Stages: Pre-Seed, Seed
Recent Investments:
Intro
Minoan
Lunch
Climentum Capital
About: Climentum Capital is a Venture Capital firm based out of Copenhagen, Berlin and Stockholm. We invest in European startups that can cut down megatons of CO2 emissions in a concrete and measurable way. The fund targets late Seed and Series A investments into the six sectors that demonstrate the largest CO2 reduction potential: – Industry & Manufacturing – NextGen Renewables – Food & Agriculture – Buildings & Architecture – Transportation & Mobility – Waste & Materials As one of the first Venture Capital funds with a double carry structure (with both financial and impact targets), Climentum is dedicated from day one to evaluate and only invest in companies that hold true carbon reduction potential.
Investment Stages: Seed, Series A
Recent Investments:
Entocycle
Qvantum
Continuum
Seed Club Ventures
About: Seed Club Ventures is a Venture DAO backing early-stage founders building at the intersection of web3 and community. With a membership of 60+ leading innovators and investors in crypto, we are diverse in our ability to support projects throughout their life cycle. Launched in partnership with Seed Club, the leading network for DAO builders, our mission is to build a community-owned internet.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Guild
Stability AI
Molecule
Capchase
Location: New York, New York, United States
About:Capchase is the growth partner for ambitious software-as-a-service (SaaS) and comparable recurring-revenue companies. They help founders and CFOs grow their businesses faster through non-dilutive capital, market insights, and community support. Founded in 2020 and headquartered in New York City, Capchase provides financing by bringing future expected cash flows to the present day – thereby securing funding that is fast, flexible, and doesn’t dilute their ownership.
Investment Stages: Series B
Recent Investments:
Fondo
Enerex
BlogTec
Gold House Ventures
About: Gold House Ventures is the definitive fund investing in Asian/Pacific Islander-founded companies. We back founders building industry-changing, culturally-compelling businesses by providing a singular suite of services that includes our accelerator, Gold Rush (whose alumni have collectively raised $500 million+); our talent placement vehicle, the Multicultural Leadership Coalition, which partners with leading multicultural funds to increase diversity in Board and Advisory pipelines; media marketing with every major film studio and streaming platform, and access to Gold House’s network of top Asian Pacific leaders across venture capital, media, entertainment, and tech.
Investment Stages: Pre-Seed, Seed, Series A, Series B
Recent Investments:
CreatorDAO
Xiao Chi Jie
Blossom.team
The Fintech Fund
About: An early-stage venture fund supporting the best fintech and defi teams.
Thesis: The Fintech Fund is a $25M venture fund investing in the top 1% of fintech and decentralized finance startups globally. Our focus is split between more established fintech markets in the US and Europe – for which picks-and-shovels SaaS and infrastructure builders will sell into a growing market of buyers – and emerging markets, where opportunities exist for consumer fintechs to dominate winner-take-all markets.
Investment Stages: Pre-Seed, Seed
Recent Investments:
TrueBiz
GuruHotel
Yave
Vibe Capital
About: Vibe Capital is a $10m Fund that invests in the Web3, AI, and Deep Science sectors at the Pre-Seed and Seed stage. We seek venture-scale returns by leaning in to the volatility caused by the exponential growth of the Web3, AI, and Deep Science sectors intertwining with demographic shifts and climate change.
Thesis: Vibe Capital is a $10m Fund that invests in the Web3, AI, and Deep Science sectors at the Pre-Seed and Seed stage. We seek venture-scale returns by leaning in to the volatility caused by the exponential growth of the Web3, AI, and Deep Science sectors intertwining with demographic shifts and climate change.
More here -> https://vibecap.co/thesis/
Investment Stages: Pre-Seed
Recent Investments:
Pipedream Labs
Circle Labs
Fauna Bio
Origins
About: We’re a new type of VC firm backing legendary consumer founders with an unfair advantage from pre-seed to seriesA. We invest $100k to $500k in consumer tech startups and also come with the power of influence of our LP’s and their 160,000,000 followers. You can reach us at hello@origins.fund
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Matchday
Stadium Live
Upway
Portfolio Ventures
About: The PV Angel Fund is backed by a great mix of investors leading UK angels, successful founders, C-level execs, and corporate NEDs who co-invest alongside the fund and provide strategic support to our portfolio companies.
Thesis: Co-investing tax-efficient capital in the best UK tech startups alongside lead investors.
Investment Stages: Pre-Seed, Seed, Series A
Punch Capital
About: Punch Capital backs early-stage founders who break new ground.
Thesis: Punch Capital backs courageous immigrants at the earliest stages. We are honored to be among Weekend Fund’s Emerging 50: signatureblock.co/emerging-50.
Investment Stages: Angel, Pre-Seed, Seed
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VCs and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
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investors
Hiring & Talent
Five Ways to Help your Portfolio Companies Find Talent
In Visible’s 2022 Portfolio Support Survey (full report here), VC Operators reported that the number one support request they receive from portfolio companies is help with sourcing and hiring talent. This makes complete sense considering funds are investing in companies they hope will scale quickly, and in order to do so, companies need to recruit top talent quickly.
This post outlines 5 ways VC Funds can better support their portfolio companies with hiring and talent.
1. Develop recruiting expertise internally at your VC fund.
For funds just thinking about making their first platform hire, consider hiring someone with a recruiting or talent background and making that your defined approach to your VC platform. Alternatively, if your fund has the resources, consider bringing on a Head of Talent either full-time or on a contract basis to lead your portfolio talent initiatives.
2. Bring in external expertise to educate founders.
Invite relevant talent service providers to deliver content to your portfolio companies on the topic of sourcing and recruiting talent. Your companies will benefit by learning best practices from an expert and also by being introduced to a vetted service provider if a company decides to outsource recruiting for a role.
Tip: Record the content and host it in a place where other portfolio companies can access the content in the future. (We like using Notion at Visible).
3. Create a curated list of vetted recruiting service providers.
If you’re not sure where to start, you can begin by asking other founders and VCs where they’ve found talent. Which service providers, job boards, and networks did they use? Document and host this information in a place that can be easily accessed in the future.
Here’s a VC & Startup specific recruiting firm to check out –> SCGC Executive Search
4. Host job-matching networking events.
Hosting events for portfolio companies is a great way to build community and expand networks. Consider hosting an event or session specifically focused on bringing together your portfolio companies and talented candidates for intentional networking.
5. Add recruiting tech to your VC Tech Stack.
If you’ve decided talent is going to be your VC Platform’s area of focus, it may be time to invest in recruiting technology to support your efforts. Here are three recruiting tech platforms to check out —
Bolster – Bolster is an on-demand executive talent marketplace that helps accelerate companies’ growth by connecting them with experienced, highly vetted executives for interim, fractional, advisory, project-based, full-time or board roles. Bolster also provides startup and scaleup CEOs with software, programming, and content to help them assess, benchmark, and diversify their leadership teams and boards. Sign up for a free partner account here to unlock a $2,000 credit for your portfolio companies.
Getro – This is an automated job board that updates as your portfolio companies add or remove job openings from their career pages. It takes the manual work out of connecting people and companies in your network.
Pallet – This is a community-led job matching platform. You can host all your portfolio job opens in a single place to host on your website and promote on social media. For an example of a VC Fund’s pallet board check out K50 Ventures Portfolio’s pallet board.
Visible for Investors is a founders-first portfolio monitoring and reporting platform.
Learn More
investors
Operations
A Guide to Onboarding New Companies into Your VC Portfolio
We can all agree that first impressions are important. Whether we like it or not, our first interactions with someone, often set the tone for the duration of the relationship. This holds true when it comes to welcoming a new company into your fund’s portfolio as well.
This is why it’s important for Venture Capital Platforms to provide new portfolio companies with an organized, well-thought-out, first impression to their post-investment support resources. This will help with company <> Platform engagement and is an opportunity to live up to your fund’s brand promise.
If you’re looking to improve your onboarding experience for new companies, check out the resources and templates in this guide to get started.
This guide covers the following:
1) Sending your initial welcome email
2) Setting up your first introductory meeting
3) Sending out thoughtful swag
4) Integrating founders into your community
5) Scheduling a follow-up meeting
Related Resources:
How to Hire Your First VC Platform Role
Portfolio Data Collection Tips
Visible for Investors is a founder-friendly portfolio monitoring and reporting platform. Schedule time with our team to learn more.
founders
Fundraising
Operations
Business Startup Advice: 15 Helpful Tips for Startup Growth
Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days.
Building a startup is difficult. Being a founder can almost feel impossible. There are very few people that have been in the shoes of a startup founder. This means that there are very few people that know the difficulties that come along with building and leading a startup.
As a startup founder, you are responsible for hiring and retaining employees, securing capital, developing a product, building culture, and more. Chances are you haven’t lead all of those things in the past. Because of this it is important for you to look to the founders and leaders that have been there before to uncover advice.
Related Resource: 7 Essential Business Startup Resources
Check out our 15 helpful tips for startup success below:
1) Be Persistent
Leading a startup is full of ups and downs. Inevitably, things will not go as planned and will feel like everything is headed in the wrong direction. Paul Graham, Founder of YC, coined the term “trough of sorrow” to explain when your startup loses momentum and feels like things are all headed in the wrong direction.
In order to navigate troughs of sorrow and down periods, startup founders need to stay persistent. You’ll need to focus on what truly matters to your business and stay the course.
Related Resource: The 23 Best Books for Startup Founders at Any Stage
2) Always Be Solution Focused
As we’ve alluded to earlier, founders are pulled in a hundred different directions. — whether it be with hiring, fundraising, or developing a product. It is easy to get distracted and spend your time (and your team’s time) working on projects or initiatives that are not core to your business.
As a startup founder, it is important to stay focused on your solution and the problem you are solving. As Kyle Wong, the CEO of Pixlee, puts it,
“Having a product that does a lot of things but doesn’t do anything well is useless. Your goal should be to definitively say that your product is the best at doing X for market Y. You should ask yourself, “Which customers do I care most about, and what can I do to make their experience better?”
Determine what your company is uniquely good at and stay focused on that solution.
3) Invest in Yourself
When managing a team, it can be difficult to put yourself aside and continue to invest in the team members around you. As a startup founder, it is important that you take the time and resources necessary to invest in yourself. This will differ from founder to founder depending on they do this. For some it might be setting time off from work to hone other skills, attending leadership conferences, etc.
4) Execution, Execution, Execution
Forecasting growth and building a product roadmap is a task in itself. Executing those plans and roadmaps is vital, and difficult. In order for a startup to succeed, the leadership team needs to be focused on execution from day to day to make sure everyone is headed in the same direction.
As the team at Basis Set Ventures puts it, “Execution is the only aspect that is consistently correlated with startup success. Across all archetypes, day-to-day effectiveness and whether the founder learns and adapts quickly are most correlated with success.” Check out the image from their Founder Superpowers report below:
5) Focus on Results
Going hand in hand with execution is the ability to focus on results. It can be easy to get consumed by the inputs, but if the results are not there it is important to quickly pivot and try inputs and strategies that show real results.
Because most startups have a limited runway (cash) it is important to move quickly and stay rallied behind results. If you find a marketing or acquisition channel is not moving the needle, it is important to quickly cut that channel and focus on what is driving results.
6) Build a Reliable Network
The startup world is a tight-knit community. Different VC funds and corporations have made it incredibly easy for founders and startup employees to network and help one another.
Having a reliable network is a great way to help in all aspects of business building. Connections will be able to make introductions to potential investors, ideal customers, and job candidates. It is important to be thoughtful about the relationships you are building and focus on building trust before pursuing business interests.
As the team at Hustle Fund wrote, “Networking wasn’t about going to a bunch of conferences and exchanging business cards. Networking is simply about making friends.”
7) Protect Your Equity
Equity is the most expensive asset a startup founder has. It is important to protect and manage your equity accordingly. At Visible, we believe that startup leaders should have dedicated tools for managing their equity — just as sales and marketing teams have dedicated tools to manage their day-to-day.
Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days.
8) Become a Storyteller
Storytelling is a crucial part of building a successful startup. Sure there are more important aspects of business building but being a great storyteller will help immensely with fundraising, hiring, and messaging. As Steve Jobs puts it,
“The most powerful person in the world is the storyteller. The storyteller sets the vision, values, and agenda of an entire generation to come.”
Kristian Andersen of High Alpha joined us to discuss how founders can leverage storytelling to craft their pitch deck for successful fundraise. Learn more here or check out a snippet below:
9) Embrace the Journey
Building a startup is a journey. As we mentioned previously, there are many ups and downs when it comes to building a startup. While it can be easy to stay focused on the day-to-day it is important to take a step back and look at the journey. It is easy to focus on the lows but is rewarding to allow yourself and your team to celebrate the wins.
10) Don’t Let Yourself Get Burned Out
Building a successful startup requires solving a lot of difficult problems. At times it might feel like you are banging your head against the wall. It is easy to get consumed by a problem and put everything you have into solving it day after day. However, this can lead to burnout and cost you, and your team, in the long run.
In order to avoid burnout, it is important to make yourself, especially your physical and mental health, a priority. Learn more below.
11) Make Physical and Mental Health a Priority
Launching a startup is an exhausting job and can take a toll on a founder’s physical and mental health. As the team at Starting Line VC puts it,
“Building a startup is an exhausting process. It is terrifying, stressful, and confusing. It can also be exhilarating. The highs are higher than any other feeling; the lows depress similarly. As a founder remarked to us recently, “my mood is dictated daily by the performance of our Shopify revenue. If not managed and balanced, these volatile emotions can become unhealthy. Worse, they can affect performance.”
Learn more about managing your physical and mental health with Ezra Galston of Starting Line Ventures here.
12) Strategically Plan Out Every Work Day
If you’ve been following along, you have probably noticed that focus is a core aspect of startup success. Focus in everything from product development to your daily routine can help a company succeed. By having a strategic plan for each workday, you’ll be able to maintain that focus on the big problems you are solving. Of course, there is no one size fits all strategy to planning out a work day. Find what works best for you and stick to it.
13) Make Different Mistakes
Things never go as planned when building a startup. Mistakes are inevitable. The only thing you can do is learn from your previous mistakes and do your best to make them again. Mistakes are a great way to learn, especially as an early stage startup. You can’t let the mistakes weigh you down and have to be viewed as a learning opportunity that won’t happen again.
14) Progress Not Perfection
Many times it can be intimidating to put a product, pitch deck, email, blog post, etc. out before it is perfect. However, most startups are strapped for cash and need to balance speed with perfection. Of course, it would be ideal to have every aspect of your product be perfect, but that is not realistic. One of the differentiators of a startup is the ability to move quickly. In order to do so, you need to focus on the progress. Finding the right balance of progress and perfection is key to moving efficiently.
15) Know Your Customers
Without customers, a business fails to exist. Having a voice of your customers and a true understanding of their needs is a surefire way to make sure you are building the right product, sending the right message, and hiring the right team members. In order to know your customers, you need to take the time to understand their needs and build relationships with individuals.
Building relationships with customers will also reduce the likelihood of churn. Chances are your customers are working through the same things as you and will understand what you are going through. Scott Dorsey of High Alpha stresses that founders should be close to their customers than ever before when working through tough times. From our post, 4 Takeaways From Our Webinar with Scott Dorsey,
“During uncertain times, it is more important than ever to be close to your customers. Your customers are going through the same things that you are going through. Establish and preserve your relationship so you can grow together on the other side of the downturn.”
Learn Everything You Need to Know About Funding With Visible
Boiling down what it takes to build a successful startup into 15 tips is unrealistic. Some things may work for one company and not the other. The only way to truly understand what works for you and your business is by getting out there and doing it. At Visible, we want to be there along the way to help you with all things related to fundraising, investor relations, and metric tracking. Learn more about how we can help with your fundraising efforts here.
Related resource: Strategic Pivots in Startups: Deciding When, Understanding Why, and Executing How
founders
Fundraising
[Webinar Recording] Raising a Founder-Led SPV With Nik Talreja of Sydecar
Nik Talreja is the CEO and Founder of Sydecar. Sydecar helps you start and run your fund or SPV — so you can focus on making deals, not spreadsheets. Nik is joining us to break down the structure, mechanics, and considerations for founder-led SPVs. Check out the recording below:
Webinar Recap
Nik joined us on July 12th to break down all things related to SPVs. We’ll cover the ins and outs of raising your first SPV. In this webinar, you can expect to learn:
What an SPV is
Why founders should consider using an SPV
Considerations for a founder-led SPV
The mechanics behind an SPV
Watch Recording
Check out the recording of our webinar with Nik below:
founders
Fundraising
What is an Incubator?
Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days.
Venture capital is relatively new. In the 80s and 90s venture capital was simply capital available to “tech” companies (e.g. silicon chips in the 90s). At the time, capital was enough of a differentiator for a VC fund to stand out. Since then, the market, and funding options available to startups, have exploded.
Y Combinator launched in the mid-2000s and began transforming the space. Since then name-brand VC funds have popped up throughout the country and the globe. Now, founders are looking for more from their investors (hiring help, future capital, leadership skills, technological help, etc.).
Related Resource: Seed Funding for Startups 101: A Complete Guide
One of the popular funding options and resources that has popped up over time is the incubator. As put by the team at Investopedia,
“An incubator firm is an organization engaged in the business of fostering early-stage companies through the different developmental phases until the companies have sufficient financial, human, and physical resources to function on their own.”
Related resource: Accelerator vs. Incubator: Key Differences and Choosing the Best Fit for Your Startup
What Do Incubators Do?
While different incubators will likely specialize in different aspects of business building, they generally help in all of the ways below.
Provides Feedback & Assistance With Business Basics
Incubators are generally suited to extremely early product ideas or businesses. One of the areas they are the best fit to help is by providing feedback and covering business basics. This might include things like establishing your business, brand, distribution strategy, and more.
Introductions to Other Startups & Networking Opportunities
Generally, incubators have cohorts or classes of startups. This means that they are seeing hundreds of startups throughout their lifecycle. Incubators are a great way to find introductions to other startups, founders, and partners they might have worked with in the past.
Includes Necessary Equipment – Including High-Speed Internet
Historically, incubators have a physical office space for startups to leverage. This is an opportunity for startups to save on office rent and leverage the equipment and tools they need to succeed — internet, conference rooms, desk space, etc.
Access to Investors
Once you’ve worked your way through an incubator, chances are you are ready to hit the ground running on your business. One of the common ways to do this is by scaling strategies you worked on during the incubator. To help with this, many incubators have demo days or a network of investors they will be able to introduce you to for a future round of financing.
Related Reading: All Encompassing Startup Fundraising Guide
Connections to Strategic Partners & Other Service Providers
Another benefit of an incubator is the partners and service providers that they work with. Oftentimes, incubators work closely with large organizations or have individuals present with their expertise. For example, an incubator might bring in someone that is an expert in product-led growth and can help you set up your process and make introductions to potential hires. On the flip side, they generally offer discounts to service providers to help you get things started.
Types of Business Incubators
Incubators tend to be a proving ground for different startup ideas and products. Due to this, different types of businesses and organizations have incentives to launch an incubator. Check out some of the most common types of incubators below:
Academic Institutions
One of the most common types of institutions that use incubators is academic institutions — generally large universities. This is a great way to allow current undergraduate and graduate students to pursue different ideas and businesses they might have in mind. Universities can tap into their network of experienced professors to help students with all aspects of business building. Additionally, universities also offer a massive network of alumni.
Non-Profit Organizations
Another business that leverages incubators is non-profit organizations. Non-profits are generally trying to solve large problems that impact people across the globe. Because of this, the space generally requires innovation and new ideas to help tackle these problems. Non-profits turn to incubators to help fuel innovation in the space and uncover the next entrepreneurs suited to help.
Related Reading: Impact Investors and Fund Managers to Know
For-Profit Corporations
Of course, for-profit corporations are very common in the incubator space. Corporations are likely looking for growth and innovation in their market and space. While they likely have teams dedicated to this in-house they also look outside their organization for areas where they can innovate and expand. Corporations will use incubators to search for new ideas and products from entrepreneurs that are in the space and can help their business grow even further.
Venture Capital Firms
Another common business that uses incubators is venture capital firms. VC firms are dedicated to investing in startups. Because of this, they are incentivized to help the earliest stage startups incubate their idea. This allows them to invest at a later date and get a head start on the diligence process. VC firms also have built out networks and partners that help their VC fund portfolio companies which translates well to helping the companies in their incubator.
Related Reading: The 12 Best VC Funds You Should Know About
What’s the Difference Between an Incubator and an Accelerator?
Incubators and accelerators have both become synonymous with the startup space. While you might think they are similar or the same, they do have a number of differences. An incubator is built to help the earliest stage ideas develop their business expertise and determine if they have a viable business.
Related Reading: Why Most Accelerators Fail…and Why Yours Doesn’t Have To
An accelerator is best suited to help businesses that are a step further. As put by the team at TechTarget, “A startup accelerator is a business program that supports early-stage, growth-driven companies through education, mentorship and financing. Startups typically enter accelerators for a fixed period of time and as part of a cohort of companies. While accelerator programs can provide beneficial resources to organizations at all stages of development, most focus on those that are pre-revenue.”
This means that these companies already have a business model and product in place and are ready to hit the ground running on their revenue growth and product development.
Is an Incubator Right for You?
Incubators aren’t for everyone. If you’ve got an understanding of your business model and product, you are likely ready to skip over the incubator and hit the ground running on your business. To learn how you can take your business to the next level, subscribe to the Visible Weekly – we search the web for the best tips to attract, engage and close investors, then deliver them to thousands of inboxes every week. Subscribe here.
founders
Fundraising
The 12 Best VC Funds You Should Know About
What is a VC Fund?
A venture fund is capital that is ready to be deployed by the venture capital firm (or the management company). It’s a funding option that allows VC funds to buy equity in a startup. In turn, a startup gives up a percentage of their ownership with the hopes of growing their valuation and creating a successful exit for everyone on the cap table.
The Structure of a VC Fund
Capital for a venture fund comes from limited partners, which are generally much larger funds, and are looking to diversity their investing via venture capital funds.
Limited partners tend to be either university endowments, sovereign funds, family offices, pension funds, or insurance companies.
Then there’s a management company which is responsible for prospecting investments, collecting fees and expenses, branding, and more.
AngelList describes it as, “A management company is a business entity created by a venture firm’s general partners (GPs). It’s responsible for managing a venture firm’s operations across its funds.”
A general partner is someone who manages a venture fund and likely the management company. GPs oftentimes invest their own money so they have skin in the game.
Read the full article on VC Fund Structure here.
Types of Venture Capital Funding:
Seed Capital
Seed funding, which oftentimes includes “pre-seed” funding, is generally the first round of financing for a startup. There typically tend to be funds that specialize in pre-seed/seed-stage financings.
Early Stage Capital (Often Series A or Series B)
Early-stage capital is often when a company might have some traction and promise that it can grow into a massive company that is worthy of an exit.
Expansion Capital
Venture funds at this stage are likely huge funds that make fewer investments with larger check sizes. At the point of investment, most companies will have proven success to in turn will raise at higher valuations.
Late Stage Capital
This might be a final injection before a company sets to go public or to fund expansion into a totally new market.
Rolling Funds
While they are not typically dedicated to a specific stage (like the examples above) the way they raise financing and treat the general partner to limited partners relationship differs.
Startup Fundraising Checklist:
Step 1: Determine if VC is Right for Your Business
Step 2: Prepare Your Deck, Docs, and Metrics
Step 3: Find Investors (Check out our Connect Investor Database)
Step 4: Pitch Investors and Take Meetings
Step 5: Due Diligence
Step 6: The Term Sheet
Related Resource: Miami’s Venture Capital Scene: The 10 Best Firms
Tiger Global Management
Tiger Global Management is an investment firm that deploys capital globally in both public and private markets and beats out all other VC’s in the world with the highest count of unicorn portfolio companies. They are based in New York with a focus in global Internet, software, consumer, and payments industries
Some of their recent investments include:
Amogy
SleekFlow
CloudQuery
Number of Unicorns in Portfolio
Tiger Global Management has 209 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 440 rounds within the last year.
SV Angel
SV Angel is a San Francisco-based angel firm that helps startups with business development, financing, M&A, and other strategic advice.
Some of their recent investments include:
Graft
Bubblehouse
Gilde
Number of Unicorns in Portfolio
SV Angel has 23 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 57 rounds within the last year.
Related Resource: The 11 Best Venture Capitals in San Francisco
LocalGlobe
LocalGlobe is a venture capital firm that focuses on seed and impact investments. They are located in London, England and their investment geography is usually within Europe.
Some of their recent investments include:
Cloudwall Capital
&Open
Shellworks
Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth
Number of Unicorns in Portfolio
LocalGlobe has 18 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 52 rounds within the last year.
Greycroft
Greycroft is a venture capital firm located in New York that focuses on technology start-ups and investments in the internet and mobile markets.
Some of their recent investments include:
Narmi
Boulder Care
Branch
Number of Unicorns in Portfolio
Greycroft has 9 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 80 rounds within the last year.
Bain Capital Venutre
Bain Capital Ventures is a global private equity firm located in Boston, with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets.
Some of their recent investments include:
Auxilius
Magical
JupiterOne
Number of Rounds Participated in the last 12 Months
Bain Capital Venutre have participated in 66 rounds within the last year.
Andersson Horowitz
Andreessen Horowitz was established in June 2009 in Menlo Park, California by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today’s entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses.
Some of their recent investments include:
Entropy
SCiFi Foods
Adim
Number of Unicorns in Portfolio
Andersson Horowitz has 98 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 241 rounds within the last year.
Canaan Partners
Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan’s resources is the breadth of operating, managerial and financial experience.
Some of their recent investments include:
WorkMotion
Appsmith
Marvin
Number of Unicorns in Portfolio
Canaan Partners has 6 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 43 rounds within the last year.
Anthemis
Anthemis Group is a global platform that cultivates change in the financial system by investing in, growing, and sustaining businesses. They are located in New York and London and thein investment thesis is to focus on startups that leverage technology to significantly impact the financial system.
Some of their recent investments include:
Hokodo
Kasheesh
Kinly
Number of Unicorns in Portfolio
Anthemis has 5 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 51 rounds within the last year.
General Catalyst
General Catalyst is a venture capital firm located in Cambridge, Massachusetts, that makes early-stage and growth equity investments with a focus in Consumer, Enterprise, Mobile, and Applications.
Some of their recent investments include:
Guild
Vibrant Planet
Sanas
Number of Unicorns in Portfolio
General Catalyst has 72 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 115 rounds within the last year.
Related Resource: 11 Top Venture Capital Firms in Boston
TCV
TCV is a leading provider of capital to growth-stage private and public companies in the technology industry. They are located in Menlo Park, California but invest globally.
Some of their recent investments include:
Trulioo
FlixMobility
FarEye
Number of Unicorns in Portfolio
TCV has 32 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 23 rounds within the last year.
Balderton Capital
Balderton Capital is an early-stage venture firm that’s based on the principles of teamwork and an intense dedication to building companies of lasting value. They provide superior service to entrepreneurs through a unique, team-oriented partnership. This team approach not only makes it more fun for them to come to work everyday, but more importantly, it benefits their portfolio companies. Instead of competing for resources, they share ideas, contacts and resources. They are located in London, England and primarily invest in European companies.
Some of their recent investments include:
TestGorilla
Request Finance
Avi Medical
Number of Unicorns in Portfolio
Balderton Capital has 13 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 38 rounds within the last year.
Forum Ventures
Location: New York City, San Francisco, and Toronto, United States
Thesis: B2B SaaS; Future of Work, E-commerce enablement, Supply Chain & Logistics, Marketplace, Fintech, Healthcare
Investment Stages: Pre-Seed, Seed
Recent Investments:
Sandbox Banking
Tusk Logistics
Vergo
Check out Forum Ventures profile on our Connect Investor Database
RRE Ventures
RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.
Some of their recent investments include:
Haystacks.ai
Domain Money
Palm NFT Studio
Number of Unicorns in Portfolio
RRE Ventures has 13 unicorns in their portfolio
Number of Rounds Participated in the last 12 Months
They have participated in 17 rounds within the last year.
Related Resource: Exploring the Top 10 Venture Capital Firms in New York City
Related Resource: Chicago’s Best Venture Capital Firms: A List of the Top 10 Firm
Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks
Looking for Funding? Visible Can Help- Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here and check out Visibles Fundraising page: https://visible.vc/fundraising
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Reporting
Customer Stories
[Webinar Recording] Building Scalable Portfolio Support
Portfolio support plays an important part in differentiating good investors from great investors. However, it can be hard to be a value-add investor when time and resources are constrained, which is why building scalable support is key.
We were joined by Jessica Lowenstein, Head of Platform at K50 Ventures, and Erica Amatori, Head of Platform at Left Lane Capital for a discussion on:
How each fund defines its approach to support
What systems/processes are needed to scale support
Tips for onboarding new companies into your portfolio
Navigating information flow between the investment team and ops
Advice for new funds thinking about formalizing their approach to support
Visible for Investors is a founders-first portfolio monitoring and reporting platform. Schedule time with our team to learn more.
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Reporting
Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors
Building a startup is incredibly difficult. Leading an early-stage startup can almost feel impossible. On top of building a product, successfully selling and marketing a product, hiring top talent, and more – a founder is responsible for engaging with stakeholders across the board (team members, investors, board members, mentors, etc.)
Related Resource: The Complete Guide to Investor Reporting and Updates
Investors might simply seem like a source of capital. However, they can offer so much more. Investors can offer future capital, their own experience, and network to help move your business forward. It is your responsibility as a founder to have a game plan to place to communicate and leverage your investors.
Learn more about building an investor relationship management plan below:
What is Investor Relationship Management?
As we previously mentioned, investors can offer much more than capital. Venture capitalists and startup investors have likely been operators themselves. They will be able to offer future capital, takeaways from their own experiences (and their other investment experiences), and their own network to help with hiring and finding early customers.
Related Resource: The Complete Guide to Stakeholder Management for Startup Founders
At the end of the day, investors are human and value relationships. It is a founder’s duty to properly communicate with investors and strengthen relationships. While each and every founder <> investor relationship is different, a strong relationship management system looks something like this:
Monthly investor updates sent via email
Quarterly board meetings (in person or via Zoom)
One-off calls and conversations
Related Resource: How to Create a Board Deck (with Template)
Of course, all of these are business-centric meetings so it is important to make sure to build personal relationships along the way. Learn more about the key components and benefits of strong investor relationship management below:
Key Components of Investor Relationship Management
Relationships require work. A founder <> investor relationship is no different. The components of building a relationship with investors will vary from person to person but we generally suggest leveraging the following tools as a backbone for your investor relations.
Related Resource: How to Build a Strong Investor Relations Strategy
1) Monthly Investor Updates
At Visible, we have found that companies that regularly communicate with their investors are 300% more likely to raise follow on funding. A monthly investor update can go a long way when it comes to building relationships with investors.
Related Resource: How To Write the Perfect Investor Update (Tips and Templates)
Monthly updates should take no more than a few minutes of your time and can pay dividends down the road. You’ll be able to regularly surface challenges you are facing to get your investors to help on the fly.
Check out a few popular monthly updates for inspiration below:
The Visible “Standard” Investor Update Template
Visible Lite Monthly Update
Y Combinator Investor Update
Related Resource: How to Write the Perfect Investment Memo
2) Quarterly Board Meetings
Monthly updates are great for keeping investors in the loop and getting their input on the fly. Quarterly board meetings are a great opportunity to look back at the quarter and shape your future roadmap and decisions with your board.
Quarterly board meetings will allow you to sit down with vital stakeholders and spend valuable time digging into future decisions and strategies. However, it is important that you as a founder come to a board meeting well prepared and make the most of the time. We recommend sharing some information beforehand so investors can prepare as well.
3) One-Off Meetings
Monthly investors and quarterly board meetings should be the minimum when it comes to building investor relations. Inevitably there will be conversations and questions that arise that will not fit into either. With that said, it is important that you reach out to individual investors for one-off conversations and meetings as needed.
On top of being an opportunity to tap into a specific investor’s capital, network, experience, etc. a one-off meeting is an opportunity to strengthen your personal relationship with them.
4) Tools and Management
At Visible, we oftentimes compare a fundraise and investor relations to a traditional B2B sales and marketing funnel. At the top of your funnel, you are bringing in new investors (leads), building relationships throughout the middle of the funnel, and closing and delighting them at the bottom of the funnel.
Just as a sales and marketing team has dedicated tools we believe the same should for investor relations. With Visible you can find investors, send monthly Updates, share your pitch deck, and manage relationships with our CRM. Give Visible a free try for 14 days here.
Related Resource: Investor CRM: Seamlessly Manage Relationships and Finances
Related Resource: Why a CRM is Essential for Investor Relations
Related Resource: How to Find Investors
Best Practices: Investor Relationship Management Edition
As we’ve previously mentioned, every founder and investor relationship is different. We find that the stage, geography, focus, etc. might impact how to best communicate and build relationships with investors.
However, there are a few best practices that generally stay consistent from relationship to relationship. Check out a few best practices for managing relationships with investors below:
Include Wins and Losses
First things first, investors need a pulse on how your business is performing so they know where they can best help. We suggest sharing both your wins and losses with investors on a monthly basis.
Sharing wins is easy and investors want to help celebrate your accomplishments. Sharing losses is what differentiates okay from great communication. By being able to be transparent and share things you are struggling with investors will be able to build trust with you and your business and help you work through them.
Share Key Metrics
Investors will also want a quantifiable pulse on your business. Sharing a handful of key metrics is a great way to keep investors in the loop. We always recommend working through the specific metrics with your investors. Once you decide what you are going to share, make sure the metrics you are sharing stay consistent from month to month.
Related Resource: 6 Metrics Every Startup Founder Should Track
Make Asks
Arguably one of the most beneficial parts of sending investor updates is the opportunity to make an asks. Investors likely have been in your shoes before (or are working with other companies in a similar position).
Use this as an opportunity to make targeted asks to tap into their capital, experience, and network. We recommend being as specific as possible and making the job as easy as possible for the investor.
Stay Consistent
Keeping things predictable and consistent from month to month is a great way to strengthen trust with investors. For example, you’ll want to make sure you are calculating metrics the same way from month to month or are sharing your Updates around the same time of the month.
Inconsistencies might trigger a red flag and investors will question if something is going south.
Respond Promptly to Investors
Being responsible can go a long way in any relationship. Be sure to respond to your investors as quickly as possible. Even if you do not have an answer being responsive is a great way to strengthen your relationship.
What is an Investor Relations Strategy?
At the end of the day, investor relations mirror any relationship. By communicating with investors and having a strategy in place, you’ll be able to set yourself up for future success.
Related Resource: 6 Helpful Networking Tips for Connecting With Investors
Manage Your Investor Relationships with the Help of Visible
With Visible you can find investors, send monthly Updates, share your pitch deck, and manage relationships with our CRM. Give Visible a free try for 14 days here.
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Fundraising
Investor CRM: Seamlessly Manage Relationships and Finances
Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days.
At Visible, we compare a venture fundraise to a traditional B2B sales and marketing funnel. At the top of your “fundraising funnel” you are bringing in qualified investors (leads), moving them through the middle of your funnel with meetings, pitches, monthly updates, etc., and hopefully closing them at the bottom of the funnel as a new investor. Ideally, once you close a new investor you’ll delight them with regular communication.
Related Reading: An Essential Guide on Capital Raising Software
Just as a sales and marketing team have dedicated tools, shouldnt a fundraise? By implementing an investor CRM, you will be able to stay on top of your communication and relationships with both current and potential investors.
What is an Investor CRM?
As put by the originator of the CRM, Salesforce, “Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.”
However, an investor CRM is slightly different. Whereas a traditional CRM is focused on current and potential customer, an investor CRM stays focused on your current and potential investors.
Related Resource: Why a CRM is Essential for Investor Relations
This means tools to send updates, share pitch decks, monitor conversations, track status, etc. Learn more about the benefits of using a CRM for your investor relations below:
Benefits of a CRM Tool for Startups
Fundraising is a difficult. Implementing an investor CRM will not be a silver bullet that will close a round of funding for your business. It will help you build a system and organization into your process to improve your odds of success and allow you to focus on what truly matters, building your business.
Learn more about the benefits of using an investor CRM for your investor relations below:
1) CRM Gives Real-Time Insight on Your Pipeline
Any sales team wants to know the status of their pipeline. The same is true for a founder and a fundraise. Over the course of a venture fundraise, you will likely talk to anywhere between 50 and 100 investors.
To give you an accurate idea of the status of your round, founders should have a CRM in place to give you an idea of your current pipeline. For example, for new “leads” a sales & marketing team might give them a 10% chance to become a customer. You can set up the same idea for a fundraise. A new investor might be a 10% chance, an investor after a successful meeting might be 25%, etc.
2) All Investor Interactions and Conversations are Tracked
The sheer number of conversations during a fundraise should not be overlooked. As we mentioned, you will likely be talking to 50-100 investors. An investor CRM, will allow you to stay on top of your conversations.
Inevitably during the course of a fundraise, investors will pass for different reasons, request you follow up later, etc. A CRM is a surefire way to stay on top of these conversations and notes that will arise during a raise.
3) CRM Ensures You’ll Never Miss a Follow-Up
Follow ups and communication are vital to a successful sales & marketing process. The same can be said for a fundraise. Of course, there are companies that be so intriguing to investors that they’ll be ready to write a check after 1 meeting. However, for the majority of companies they will need to run a process for following up with investors.
At the end of the day, your job is to create FOMO with your potential investors so they are motivated to move quickly.
4) Seamlessly Monitors Fundraising
As we’ve alluded to throughout the post, an investor CRM is the best way to monitor the overall status of your fundraise. Using different stages and properties, you’ll be able to closely monitor the status of your raise.
This is not only beneficial to yourself but also your stakeholders. You can share the status of your fundraise with existing investors and advisors so they can help make introductions to potential investors and move you closer to a successful round.
5) Improves Relationships With Investors
One of the best benefits of using an investor CRM is that it strengthens your relationships with current investors. We have found that companies that regularly communicate with your investors are 300% more likely to raise follow on funding.
By having a system in place to communicate with your current investors you will not only improve your odds of raising follow on funding but you’ll be able to leverage their network, experience, and resources.
As a starting point, we recommend founders send a monthly update to their investors. To get the ball rolling, check out a few of our favorite monthly update templates here.
Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors
Features to Look for in an Investor CRM
Most CRMs are tailored to sales and marketing teams. When seeking out an investor specific CRM, look for some of the following details:
Seamless Collaboration and Data Sharing
Typically, investor relations relies solely on the founder and maybe a handful of other leaders. However, there are opportunities for collaboration when communicating and working with investors.
By having a CRM that allows for collaboration and data sharing, you’ll be able to quickly uncover insights about your fundraise and the state of your fundraise.
Ability to Integrate with Other Tools
A major benefit of using a CRM is that it helps automate tedious aspects of investor relations. Look for a tool that will allow you to connect with other tools and help create more efficient investor relations.
At Visible, our CRM directly integrates with a few tools:
Our free investor database, Visible Connect
Our investor updates tool
Our pitch deck sharing tool
Zapier
Easily Customizable
Every fundraise is different. Stage, geography, check sizes, etc. will all dictate how you wan to set up your investor CRM.
Look for a tool that allows you to easily customize your fundraise so it is molded to the specifics of your fundraise.
Track Communication
A key aspect of building trust with current and potential investors is with regular communication. A CRM should be a place where you can keep an eye on how your investors are engaging with your emails, updates, pitch decks, etc.
Manage Your Investor Relationships With Visible
Find investors, share your pitch deck, send investors updates, and track your investor conversations all from one place. Try Visible for free for 14 days here.
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Fundraising
Why a CRM is Essential for Investor Relations
At Visible, we believe that fundraising oftentimes mirrors a traditional B2B sales and marketing funnel.
At the top of your “fundraising funnel” you are adding qualified investors (leads), moving them through the middle of your funnel with meetings, coffee chats, monthly updates, etc. with the goal of closing them as a new investor at the bottom of the ideal. From here, you are ideally delighting them with consistent communication.
Related Resource: An Essential Guide on Capital Raising Software
Just as a sales and marketing team has dedicated tools shouldn’t a founder have tools to manage their most expensive asset, equity? Learn more about how founders can use a CRM to improve and manage their investor relations below.
What is the Definition of a CRM?
As put by Salesforce, the original pioneer of CRMs, “Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.”
However, this definition slightly changes when it comes to investor CRM. Whereas a traditional CRM is used to further your relationship with customers, an investor CRM is used to strengthen relationships with both current and potential investors.
Why is Customer Relationship Management (CRM) Important for Investor Relations?
As we previously mentioned, equity is the most expensive asset a startup founder has. Having a system in place to communicate and build relationships with the stakeholders on your cap table is a surefire way to improve your odds of raising capital in the future.
Investors are typically investing thousands to millions of dollars into businesses and they want to know their relationship is being taken seriously. Founders have the ability to stand out from their peers by having a strong system for communicating and building relationships with investors.
At Visible, we have found that companies that regularly communicate with their investors are 300% more likely to raise follow on funding down the road. On top of helping with follow on funding, founders can also leverage their investor’s network, experience, and resources.
Related Resource: Investor CRM: Seamlessly Manage Relationships and Finances
CRM Helps Startups Learn About Their Investors
Fundraising is relationship-based. On top of having a fundable business, investors will turn to founders to see how they communicate and lead their organization. By having a system and CRM in place, investors will be able to strengthen their relationships with portfolio companies.
This might not seem important when it comes to fundraising, it pays dividends down the road. At the end of the day, investors are human and will value a relationship and predictable communication.
CRM Encourages Organization
An investor CRM can also be a forcing function to have a fundraising strategy and game plan in place. A CRM will require you to be diligent about the investors are you adding to the top of your funnel and will help you best allocate your time (e.g. taking meetings with the right investors). Additionally, it will require you to have the right assets in place for when an investor inevitably asks for your pitch deck, metrics, references, etc.
Related Resource: All-Encompassing Startup Fundraising Guide
CRM Software Is Designed to Optimize Investor Interactions
Fundraising oftentimes turns into a full-time job for founders. By leveraging CRM and other tools, founders will be able to organize their process and spend more time on what truly matters, building their business. By having a CRM in place, founders will be able to focus their time on efforts on the right investors are the right time.
At Visible, we allow founders to share monthly Updates with different lists of investors. This is not only great for current investors but can also be used to nurture investors that might be at different stages of a fundraise.
For example, if an investor says your business is too early, you might want to send them a light monthly Update to keep them in the loop on the status of your business. This way when you are ready to seek future funding they will already be familiar with your business and will be eager to write a check.
How to Utilize CRM Software for Investor Relations
Raising capital for a business is extremely difficult. CRM software will not be a silver bullet to raising capital. You still need to have a fundable business and game plan in place to pitch and close potential investors. Having a CRM in place is a great way to help you spend more time on what truly matters, building your business.
Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors
Setting up an investor CRM can be highly tailored to your business and can be customized by your stage, geography, market, etc. Check out an example of a Fundraising CRM in Visible here.
Manage Your Investor Relationships With Visible
Fundraising is a relationship-based game. By having the tools, game plan, and assets in place you’ll increase your odds of a speedy and successful fundraise. Find investors, share your pitch deck, send investor updates, and track your interactions in our investor CRM all from one platform. Try Visible for free for 14 days here.
founders
Fundraising
An Essential Guide on Capital Raising Software
Fundraising is difficult. We’ve helped thousands of founders raise capital and engage with their investors. Over time, we’ve learned that a traditional B2B sales & marketing process mirrors a venture capital fundraising process.
At the top of your “fundraising funnel” you are adding qualified investors (leads), nurturing them through the middle of your funnel with meetings, updates, coffee chats, etc., and ideally closing them as new investors at the bottom of your funnel.
Related Resource: All Encompassing Startup Fundraising Guide
Just as sales and marketing processes have dedicated tools, shouldn’t a fundraise? Learn more about fundraising software and how it can help you raise capital below:
What is Capital Raising Software?
First things first, what is capital-raising software? Capital raising software, or simply fundraising software, is a platform or tool that can help founders navigate a fundraise. This means having the tools to find investors, share assets during their raise, and a place to manage and track their ongoing conversations and relationships.
Related Resource: The Understandable Guide to Startup Funding Stages
Generally speaking, when a founder seeks funding it turns into their full-time job. By utilizing a software stack dedicated to their fundraise, founders will be able to speed up their fundraising process and spend more time on what truly matters — building their business. Learn more about capital raising software and what features to look for below:
Features to Look for in a Capital Raising Tool
There are few tools that are truly dedicated to the capital-raising process. In the past, founders might just use a hodgepodge of software and tools dedicated to other use cases. This can create a headache as it gets intermingled with day-to-day tasks (e.g. using your sales & marketing CRM for tracking a fundraise).
To help you find the tool that is right for you, we’ve laid out a couple of considerations and features to keep an eye out for below:
Easy-to-Use Connect With Potential Investor Portal
First things first, when seeking out a capital-raising tool, you will want to make sure that the ability to connect and engage with potential investors is there. At Visible, we find that companies that regularly send investor updates are 300% more likely to raise follow-on funding from their existing investors. One of the core ways to engage with potential and current investors is by sharing monthly Updates.
At Visible, we have a tool entirely dedicated to sending Updates to your investors. From here you can see how they are engaging with Updates and add potential investors to your lists along the way. Check out some of our most popular Update templates in our library here.
Personalized Investor Database
Just like any sales and marketing process starts by finding qualified leads and customers, so should a fundraise. Traditional venture capital funds invest in all sorts of geographies, markets, company sizes, etc. so it is important to make sure you are talking to the right people.
By having an investor database, you’ll be able to filter and find the right investors for your business.
Related Resource: Building Your Ideal Investor Persona
At Visible, we have a free investor database, Visible Connect, that allows you to filter investors by the properties we find most important to find potential investors
Related Resource: Debt vs Equity Financing
Monitors Investor Interactions
Any sales and marketing team will have a place to monitor their interactions with current and potential customers (typically a CRM like HubSpot or Salesforce). Having a place to monitor interactions with current and potential investors is a surefire way to improve your odds of funding success. It will also help in other areas where investors can lend a hand as well (e.g. hiring, strategy, promotion, etc.)
At Visible, we allow founders to use our Fundraising CRM to track interactions (Deck views, Update engagements, etc.) so they can properly follow up with the right investors at the right time. Learn more about our Fundraising CRM here.
Related Resource: Why a CRM is Essential for Investor Relations
Related Resource: Investor CRM: Seamlessly Manage Relationships and Finances
Host and Share Pitch Decks to Investors
While different investors have different preferences when it comes to how, when, and where to share a pitch deck, they will inevitably want to see some form of a pitch deck throughout the process.
Having a tool where you can share your pitch deck via link will help you understand how investors are engaging with your deck. Tie this in with the tools mentioned above and you have a platform that can help with every step of your fundraise.
Related Resource: Tips for Creating an Investor Pitch Deck
At Visible, we offer a tool to help founders share their pitch deck with your own domain and brand settings so you truly own every step of your funding journey. Learn more about sharing Decks with Visible here.
How to Utilize Capital Raising Software to Get Funding for Your Startup
Of course, software won’t be a silver bullet that magically makes your business fundable. You need to have a fundable business and a gameplan in place to go out and raise capital. Capital raising software is simply a tool that will make the job easier on you as a founder.
By finding a tool to help with your fundraise, you’ll be able to spend more time having meaningful conversations with investors, hiring top talent, and building your business.
Related Resource: How to Raise Capital Using RUVs
Find Investors and Build Relationships With Visible’s Capital Raising Software
At Visible, our mission is to help founders succeed. We’ve helped thousands of founders communicate with their current and potential investors. Find investors, share your pitch deck, update your investors, and track your relationships all from one place. Give Visible a free try for 14 days here.
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