EP #46 - Cris Grossmann: Fundraising For Growth

Timestamps:

2:06  - What mistakes do Swiss startups make repeatedly when it comes to funding for growth?

11:43 - How to find investors

24:06  - Turning down a $ 10 million investment offer

30:47 - How to go about evaluation

40:50 - When to start the fundraising process

The Episode In 60 Seconds

The four phases of fundraising.

Phase 1: Preparation

• Start preparations either in early September or in January, as to not hit the VCs’ winter or summer break.
• Don’t waste your time talking to VCs which aren’t adequate for the round you are trying to raise anyway.
• Use personal introductions wherever you can.

Phase 2: Pitching

• Do a first screening call to gauge the general fit of the VC for your business and round.
• The goal of your pitching is to get a term sheet, which equals an offer to invest from a VC.

Phase 3: Negotiating Term Sheets

• Once you have (hopefully) collected a few term sheets, it’s time to evaluate and negotiate on the different offers.
• When choosing an investor, the cultural fit should not be underestimated. Don’t be afraid to get references on the VC from other ventures he/she has previously invested in.
• Don’t obsess too much over valuation. It is not an exact science.

Phase 4: Due Diligence

• Once you have decided to go with an offer, the investor will perform his due diligence on your business to make sure your books are in order.