| name | raising-capital |
| description | Manages the full fundraising lifecycle from deck creation through investor pipeline management, monthly updates, and round closing. Use when preparing for a fundraise, building an investor deck, setting up investor CRM, writing monthly updates, or analyzing investor pass reasons.
|
Skill: Fundraising & Investor Relations
When to Use
Invoke this skill when:
- Preparing to raise a new round or building/refining a pitch deck
- Setting up or updating an investor pipeline/CRM
- Writing monthly investor updates (pre-raise or post-raise)
- Preparing a data room for due diligence
- Analyzing pass reasons to improve pitch and positioning
- Negotiating term sheets, SAFEs, or priced rounds
Framework Stack
Phase 1: SEQUOIA 10-SLIDE + HOFFMAN ANALOGY (deck) -> "What story are we telling?"
Phase 2: PG + NFX PROCESS (execution) -> "How do we run the raise?"
Phase 3: SUSTER "LINES NOT DOTS" (relationships) -> "How do we build trust?"
Phase 4: MONTHLY INVESTOR UPDATES (ongoing) -> "How do we keep investors warm?"
Phase 5: SAFE / ROUND STRUCTURE (closing) -> "How do we close the deal?"
Phase 1: Fundraising Deck -- Sequoia 10-Slide Format + Hoffman Analogy
Company Positioning (resolve before building any slide)
- DO: Lead with the end-customer value proposition and product differentiation
- DO NOT: Lead with underlying technology or infrastructure terminology that investors won't immediately grasp
- Articulate how you solve a problem, not just what technology you use
- For tone/copywriting: reference the building-brand skill.
Positioning Trap: Many technical founders default to describing their stack ("[Positioning A]") instead
of their market impact ("[Positioning B]"). Investors buy outcomes. Frame your pitch around the outcome.
Hoffman Analogy
Pick ONE and use consistently in every meeting (goes on Slide 2 as subheadline):
- "[Known Company] for [your market]" -- choose the analogy that resonates most with your investor audience
- Example patterns: "Stripe for [X]", "Plaid for [X]", "Shopify for [X]"
Test 2-3 analogies in early meetings and converge on whichever gets the fastest "aha" reaction.
Slide-by-Slide Guide
| # | Slide | Core Question | Content Prompts |
|---|
| 1 | Problem | Why does this matter? | Quantify the pain: cost, time, complexity of the status quo. Name specific incumbent solutions and their limitations. Use a real customer proof point if available. |
| 2 | Solution | What do you do? | One sentence + architecture diagram. Show input (customer) -> your platform -> output (value delivered). Highlight time-to-value vs. status quo. |
| 3 | Why Now | Why this moment? | Market tailwinds, regulatory shifts, technology inflection points, behavioral changes. Cite recent data or events that make the timing urgent. |
| 4 | Market Size | How big? | TAM/SAM/SOM with bottom-up math. Show geographic or vertical expansion path. Use modeling-finances skill for projections. |
| 5 | Competition | Why will you win? | 2x2 positioning map showing your unique quadrant. Address each competitor category: incumbents, adjacent players, DIY/in-house. Explain your moat. |
| 6 | Product | What have you built? | Demo flow, sandbox, time-to-first-hello-world. Reference your product roadmap. Show what's live vs. what's planned. |
| 7 | Business Model | How do you make money? | Revenue model, unit economics, average revenue per client, gross margin. Show path to target ARR. Use modeling-finances skill. |
| 8 | Team | Why this team? | Lead with the strongest credential in the first 2 minutes. [Founder/CEO]: headline experience. [Founder/CTO]: technical depth. Other key hires. Emphasize domain expertise and founder-market fit. |
| 9 | Financials | What are the numbers? | Year 1/2/3 projections: ARR, client count, volume. Pull from your financial models. Use modeling-finances for scenarios. |
| 10 | The Ask | What do you need? | $[X]M [SAFE/Priced]. Use of funds: Eng [X%], Sales [X%], Ops [X%]. BE CONSISTENT -- same number every meeting (pre-seed pass lesson). Milestones this capital unlocks. |
Phase 2: Fundraising Process -- PG + NFX Execution
Paul Graham's Rules
- Only raise when you have a story and signal in the market.
- "Default alive" startups negotiate from strength (use modeling-finances skill).
- Optimize for right partner and speed, not maximum valuation.
- Get the first commitment -- hardest dollar is the first. Then FOMO works for you.
- Close committed money within 48 hours. Do not let it cool.
NFX Raise Execution Plan
PRE-RAISE (4-6 weeks before)
[ ] Monthly updates sent to targets for 3+ months (Phase 4)
[ ] Deck finalized and rehearsed
[ ] Data room complete (checklist below)
[ ] 20-30 investors in pipeline CRM
[ ] Warm intros in batches of 5-8/week
[ ] Practice pitch 5-10x with friendlies
WEEKS 1-2: LAUNCH
[ ] All intro requests sent within 2-week window
[ ] 3-5 first meetings per week
[ ] Debrief after every meeting -- adjust pitch
WEEKS 3-4: MOMENTUM
[ ] Follow up within 48 hours of every meeting
[ ] Share traction updates with pipeline
[ ] Prioritize most likely lead's diligence
WEEKS 5-6: CLOSE
[ ] First term sheet -> leverage for others
[ ] Deadline for undecided: "Closing in 2 weeks"
[ ] Negotiate terms (Phase 5), sign SAFEs, collect wires
POST-CLOSE
[ ] Announce to all investors (including passes)
[ ] Thank intro-makers
[ ] Transition everyone to monthly update cadence
Critical rule: Never stop fundraising. Even between rounds, maintain relationship cadence (Phase 3) and monthly updates (Phase 4).
Phase 3: Relationship Building -- Suster "Lines Not Dots"
A single meeting is a dot. Multiple touchpoints over 6-12 months create a line showing momentum. Build relationships months before the ask.
Touchpoint Cadence
Months 1-3: Add targets to monthly update list. Engage with their content. Share industry insights with no ask. Request 15-min advice calls on topics they know (not disguised pitches).
Months 4-6: Share milestones unprompted. Introduce them to people in their interest area. Congratulate portfolio wins.
Months 7+: They have 6+ data points. The ask meeting feels natural, not transactional.
Log every touchpoint in the investor's Pipeline CRM record: [DATE] - [Action] - [Response]
Phase 4: Monthly Investor Updates
Template
SUBJECT: [YOUR_COMPANY] -- [Month] [Year] Update
1. WINS & MILESTONES (top 3 things that went well)
- [Win 1]: [One sentence]
- [Win 2]: [One sentence]
- [Win 3]: [One sentence]
2. KEY METRICS (same table every month -- trend lines matter)
| Metric | Last Month | This Month | Change |
|---------------------|------------|------------|--------|
| Clients (live) | [N] | [N] | [+/-] |
| Monthly volume | $[X] | $[X] | [+/-%] |
| MRR | $[X] | $[X] | [+/-%] |
| Products live | [N] | [N] | [+/-] |
| Pipeline (in talks) | [N] | [N] | [+/-] |
| Runway (months) | [N] | [N] | [+/-] |
3. THE ASK (max 2, be specific -- names not categories)
- "Looking for intros to: [Company A], [Company B]"
- "Hiring: [Role] -- know any [specific profile] in [region]?"
4. LEARNINGS (one honest insight -- never hide bad news)
- "We learned [X] -- adjusting by [Y]"
5. NEXT MONTH (3 priorities)
- Priority 1: [Specific]
- Priority 2: [Specific]
- Priority 3: [Specific]
Rules
- Same day each month. Consistency builds trust.
- Under 500 words. Investors scan.
- Same metric table every month. Trend lines over snapshots.
- Send even when news is bad. Silence is worse.
- BCC prospective investors, CC current investors.
- For metric definitions: reference the measuring-growth skill.
Phase 5: Closing -- SAFE / Round Structure
SAFE vs. Priced Round
| Factor | SAFE | Priced Round |
|---|
| Speed | 1-2 days legal | 2-4 weeks |
| Legal cost | $0-5K | $25-75K |
| Valuation | Deferred (cap + discount) | Immediate (price/share) |
| Board seats | None | Typically 1 |
| Best when | Pre-seed/seed, < $3M | Series A+, governance needed |
Valuation Anchoring
VALUATION PREP
1. Comparable rounds: 5-10 recent rounds in category
| Company | Stage | Amount | Valuation | Date | Relevance |
2. Your anchors: Floor $[X]M | Target $[X]M | Stretch $[X]M | Walk-away $[X]M
3. Justification: "Our pre-seed closed at $[X]. Given [milestones], $[Y] reflects progress."
4. Dilution: At $[X]M val + $[Y]M raise = [Z%] dilution. Model with modeling-finances skill.
Term Sheet Comparison
When comparing multiple offers, evaluate side by side:
| Term | Offer A | Offer B | Offer C |
|---|
| Investor | [Name] | [Name] | [Name] |
| Amount | $[X]M | $[X]M | $[X]M |
| Instrument | [SAFE/Priced] | [SAFE/Priced] | [SAFE/Priced] |
| Valuation cap | $[X]M | $[X]M | $[X]M |
| Discount | [X%] | [X%] | [X%] |
| Pro-rata / Board / MFN | [Y/N each] | [Y/N each] | [Y/N each] |
| Strategic value | [Details] | [Details] | [Details] |
| Decision speed | [Fast/Slow] | [Fast/Slow] | [Fast/Slow] |
Negotiation Sequence
- Lead investor first -- set the terms. 2. Fill with followers on same terms (or MFN). 3. Each conversation is private. 4. Soft deadlines: "Closing by [DATE]."
Investor Pipeline CRM
Stages
- Research -- Identified, no contact. Research thesis fit, check size, conflicts, intro path. (1-3 days)
- Intro Request -- Warm intro sent or cold outreach. (3-7 days)
- First Meeting -- Pitch completed, next step defined. (1-2 weeks)
- Follow-up / Diligence -- Data room sent, questions answered, partner meetings. (2-4 weeks)
- Term Sheet -- Terms received, negotiating. (1-2 weeks)
- Closed -- Signed, wire received.
- Passed -- Record in Pass Analysis Template. Set follow-up trigger for next round.
Investor Record
INVESTOR: [Fund Name]
Contact: [Partner, title] | Fund: $[X]M | Check: $[X]K-$[X]M | Stage focus: [Pre-seed/Seed/A]
Thesis fit: [1-2 sentences] | Conflicts: [Any] | Intro path: [Who]
Current stage: [1-7] | Follow-up cadence: [Active: weekly | Warm: monthly update]
Meeting log:
[DATE] - [Type] - [Takeaway] - [Next step]
Pipeline Health (track weekly during active raise)
| Metric | Target |
|---|
| Total in pipeline | 20-30 |
| First meetings/week | 3-5 |
| Conversion: Meeting->Follow-up | > 50% |
| Conversion: Follow-up->Term Sheet | > 20% |
| Days Stage 3->4 | < 14 |
Data Room Checklist
| Category | Document | Location |
|---|
| Legal | Certificate of Incorporation ([HOLDING_JURISDICTION]) | legal/corporate/[parent-entity]/ |
| Memorandum & Articles of Association | legal/corporate/[parent-entity]/ |
| [PRIMARY_MARKET] Operating Entity Formation Docs | legal/corporate/[operating-entity]/ |
| Corporate Structure Diagram | legal/corporate/corporate-structure-guide.md |
| Cap Table, Pre-seed SAFEs, Side Letters | finance/fundraising/pre-seed/ |
| Financial | 3-year financial model | finance/models/ |
| Burn rate & runway | finance/budgets/ |
| Metrics dashboard | finance/metrics/ |
| Bank statements | legal/corporate/bank-accounts/ |
| Product | Product roadmap | product/roadmap.md |
| Demo / sandbox access | [Engineering] |
| Client list & pipeline | go-to-market/ |
| Team | Founder bios, org chart | company/ |
| Hiring plan | people/ |
| Regulatory | Jurisdiction analysis | legal/ |
| Regulatory overview for [PRIMARY_MARKET] | legal/regulations/ |
| Provider/partner regulatory status | [Create per provider] |
Pass Analysis
Individual Pass Record
PASS RECORD: [Fund Name]
Partner: [Name] | Stage reached: [1-6] | Date: [DATE] | Type: [Explicit / Ghosted / "Not now"]
Reason (their words): "[Direct quote]"
Tags: [ ] Valuation [ ] Insufficient traction [ ] Market timing [ ] Competitive concern
[ ] GTM clarity [ ] PMF uncertainty [ ] Team gap [ ] Thesis mismatch
[ ] Check size [ ] Portfolio conflict [ ] Geographic mismatch
Preventable? [Y/N] -- [What would have changed outcome]
Pattern match: [Which other passes share this reason]
Follow-up trigger: [e.g., "When we hit $500K ARR" / "Next round"]
Add to monthly updates: [Y/N]
Lesson: [One sentence]
Common Pre-Seed Pass Patterns
| Pattern | Root Cause | Mitigation |
|---|
| "Want more data points" | Pre-product, no live clients | Monthly updates (Phase 4) build the "line." Raise from regional/angel investors first, return with data for institutional seed. |
| "Valuation too high" | Valuation did not match GTM/product maturity | Use Valuation Anchoring (Phase 5). Show clear path to $1M+ ARR. Strengthen moat narrative vs. adjacent competitors. |
| "Customer concentration risk" | Large players build in-house, leaving only small clients | Address in Competition slide: "Even large clients won't build N products themselves." Show land-and-expand where ARPA grows with products added. |
| "Inconsistent messaging" | Different amounts, positioning, analogies across meetings | Standardize: one number, one analogy, one GTM story. VCs talk to each other. |
Quarterly Pass Review
Every quarter: tally passes by stage, identify top 3 reason tags, document pitch changes made, set open questions for next quarter.
Cross-References
| Situation | Skill |
|---|
| Brand voice and messaging for deck copy | building-brand |
| Financial projections for Slide 9 | modeling-finances |
| Growth metrics for investor updates | measuring-growth |
| Strategic narrative for deck framing | steering-strategy |
| Competitive positioning for Slide 5 | mapping-competition |
| Sales pipeline data for traction slide | closing-deals |
Reference Locations
| Resource | Path |
|---|
| Pitch analysis & VC feedback | finance/fundraising/pitch-analysis.md |
| Pass reasons | finance/fundraising/pass-reasons.md |
| Pre-seed round docs | finance/fundraising/pre-seed/ |
| Investor CRM | finance/fundraising/investor-crm.md |
| Financial models | finance/models/ |
| Corporate docs | legal/corporate/ |
| Product roadmap | product/roadmap.md |
| Strategic plan | strategy/strategic-plan.md |
| Competitive landscape | strategy/competitive-landscape.md |
| Investor meeting notes | meetings/investors/ |
Checklist: Full Workflow
