Hi Everyone!
Long time user of the IBD forum but first time posting here :)
Bit of a long story but to make it short, I'm taking a career break after close to a decade in IBD. One of my friend's early stage start up (in which I invested some $$ in) is getting approached by a few regional VCs, and with the inbound interest + sales growth he's looking to scale up and wants to raise 'big' which is 7-8 figures. He would like me to lead the round given he's got no finance experience & would like to keep focusing on driving sales.
I've spent years doing large scale M&A & IPOs but this whole VC/start up world is new to me so I was looking for guidance from professionals on the other side/working at VCs I could exchange with :)
I'm particularly focused on trying to learn & understand how would VCs screen & value these early stage start ups, given there's barely a few years of operations on record (but showing strong growth though), what are the key considerations that would make you invest or reject these opportunities? And any tips or thoughts you would give to someone like me taking on this fundraiser role going into pitch mode to VCs soon?
Thank you all!
I suspect many of the rules / processes that your clients valued might be considered too slow in VC land. You could always combine your IB experience and help your friend's business get acquired by a SPAC for a crazy multiple.
I think some of the following components are worth considering (I am assuming it is a Series A raise):
Thank you v much for this, it's super helpful. I fully agree my IBD toolkit won't be directly transferable hence why I'm roaming around here hehe.
Yes, targeting a series A, previously all funded by friends&family through several rounds in ~6 figures each year. No one/no VC is leading this round, it'll be the first time they are discussing with VCs (based on some inbounds). Would it make sense to ask one of them to lead it (I'm guessing in exchange for preferential terms or a fee)? Or could I / company do that?
Thanks again
I think you want a VC to lead or a couple to co-lead. The terms they agree everyone else participating in that round gets anyway, so for the lead VC it is about leading round in a fast growing company that they get to take a decent shareholding now.
Great thank you!
What industry is the business under? Is it tech, ML, AI, etc?
Recently got into VC. Might be a thing or two I can clarify.
Consumer & retail
Well beyond my expertise lol
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