fundraising

name	fundraising
description	Navigate fundraising using research on how VCs actually make decisions—cash-on-cash multiples over DCF, 10-slide Sequoia/YC hybrid decks, and warm intro outreach hierarchy. Use when preparing to raise, building pitch materials, or planning investor outreach strategy.

Fundraising

Core Principle

VCs don't invest in ideas. They invest in returns. Understand their math and you'll understand their decisions.

How VCs Actually Decide

Research shows VC evaluation priorities:

Method	% of VCs Who Use It	Implication
Cash-on-cash multiple	63%	"Will this return 10x my check?"
IRR (Internal Rate of Return)	42%	"How fast does the money come back?"
DCF (Discounted Cash Flow)	10%	Almost nobody uses this for early-stage

What This Means for You

VCs think in portfolio math:
- Fund size: $100M
- Target return: 3x = $300M
- Typical portfolio: 20-30 companies
- Need 1-2 outliers returning 50-100x to make the fund work

Your job: Convince them you could be the outlier.

The 10-Slide Pitch Deck (Sequoia/YC Hybrid)

Slide	Purpose	Time
1. Title	Company name, one-line description, your name	10 sec
2. Problem	The pain — specific, urgent, and expensive	60 sec
3. Solution	Your approach — demo or clear visual	90 sec
4. Market	TAM/SAM/SOM with bottom-up sizing	60 sec
5. Traction	Revenue, users, growth rate — the evidence	60 sec
6. Business model	How you make money, unit economics	60 sec
7. Competition	Positioning map — not a feature matrix	45 sec
8. Team	Why this team wins — relevant unfair advantages	45 sec
9. Financials	18-month projection, use of funds	45 sec
10. Ask	Amount, milestones this capital unlocks	30 sec

Slide-by-Slide Guidance

Problem slide: "X people spend Y hours/dollars doing Z because no one has built W."
  - Quantify the pain. Abstract problems don't get funded.

Traction slide: Show trajectory, not just a number.
  - "MRR: $5K → $15K → $40K over 3 months" beats "$40K MRR"

Market slide: Bottom-up, not top-down.
  - BAD: "The global SaaS market is $200B"
  - GOOD: "50K mid-market companies × $500/mo × 12 = $300M SAM"

Outreach Hierarchy

Effectiveness ranked by actual conversion data:

1. Warm intro from portfolio founder     → 30-40% meeting rate
2. Warm intro from trusted VC            → 20-30% meeting rate
3. Warm intro from mutual connection     → 10-20% meeting rate
4. Cold email (well-researched)          →  3-5% meeting rate
5. Cold LinkedIn message                 →  1-2% meeting rate
6. Cold application through website      →  <1% meeting rate

Warm Intro Request Template

To: [Mutual Connection]
Subject: Intro to [VC Name] at [Fund]?

Hi [Name],

Quick ask — would you be comfortable introducing me to [VC]?
We're raising a [seed/Series A] for [Company] — [one sentence description].

We have [key traction metric] and [VC Name] invests in
[relevant thesis match].

Happy to send a forwardable blurb if helpful. No pressure
if the timing doesn't feel right.

[Your name]

Forwardable Blurb

[Company] — [one-line description]

- [Key metric 1: revenue, users, or growth rate]
- [Key metric 2: retention, NPS, or notable customer]
- Raising [$X] to [specific milestone]
- [Relevant background of founding team]

Deck attached. Happy to meet anytime this week.

Fundraising Timeline

Week 1-2:  Build target list (40-60 investors), research thesis fit
Week 2-3:  Activate warm intros, send forwardable blurbs
Week 3-6:  First meetings (aim for 15-20 in a compressed window)
Week 4-7:  Partner meetings and deep dives
Week 6-8:  Term sheets and negotiation
Week 8-10: Close and wire

Anti-Patterns

Fundraising Theater	Real Fundraising
"Taking meetings with anyone interested"	Targeting 40 investors with thesis fit
Raising before having any traction	Having 3+ months of growth data
Leading with the product	Leading with the market opportunity
Sharing 30-slide decks	10 slides max, every word earns its place
"We have no competition"	"Here's why we win against [specific alternatives]"
Sequential outreach over 6 months	Compressed 3-4 week sprint for FOMO

Power Move

"Help me build a target investor list of 40 VCs for a [stage] raise in [sector]. For each, identify: thesis fit, check size, portfolio overlap, and the best warm intro path from my network. Then draft a forwardable blurb."

The agent becomes your fundraising strategist — mapping the shortest path from intro to term sheet.