raising-capital

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?"

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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.

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Phase 2: Fundraising Process -- PG + NFX Execution

Paul Graham's Rules

1. Only raise when you have a story and signal in the market.
2. "Default alive" startups negotiate from strength (use modeling-finances skill).
3. Optimize for right partner and speed, not maximum valuation.
4. Get the first commitment -- hardest dollar is the first. Then FOMO works for you.
5. 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).

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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]

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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.

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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

1. 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]."

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Investor Pipeline CRM

Stages

1. Research -- Identified, no contact. Research thesis fit, check size, conflicts, intro path. (1-3 days)
2. Intro Request -- Warm intro sent or cold outreach. (3-7 days)
3. First Meeting -- Pitch completed, next step defined. (1-2 weeks)
4. Follow-up / Diligence -- Data room sent, questions answered, partner meetings. (2-4 weeks)
5. Term Sheet -- Terms received, negotiating. (1-2 weeks)
6. Closed -- Signed, wire received.
7. 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

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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]

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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.

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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/

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Checklist: Full Workflow

• Build 10-slide deck (Sequoia format) with consistent company positioning
• Pick ONE Hoffman analogy and use in every meeting
• Set up Pipeline CRM with 20-30 target investors
• Research each: thesis fit, check size, conflicts, intro path
• Execute PG + NFX: parallel outreach, 3-5 meetings/week, debrief after each
• Build relationships 3-6 months before raise (Lines Not Dots)
• Send monthly updates on consistent schedule (5 sections)
• Prepare valuation anchors with 5-10 comparable rounds
• Complete data room before first meeting
• Compare term sheets side by side when multiple offers arrive
• Record every pass in Pass Analysis Template
• Run quarterly pass review to improve pitch