What materials does my company need at each funding stage for the most effective pitch?

Skye Grayson — 12/09/2021

Quidnet Ventures is an early-stage venture capital fund. We look at Pre-Seed, Seed and Series A companies; meaning that we look at a range of companies—from companies that are pre-revenue and raising a few hundred thousand dollars,  to companies that have proven traction and are raising a few million dollars.

What are we looking for in general, and what are we looking for at each stage? We’ll tell you.

A company raising ~$500K does not need the same marketing / diligence materials that a company raising $5M is presenting. Why? At $500K, there are likely a fewer number of investors and these investors are investing less money in real terms (and possibly relative to their net worth). Smaller investment decisions can be made faster, with less due diligence / red tape. At $5M, there are likely more investors, investing more money. This means more due diligence and more group sign-offs.

$500K / Pre-Seed

You’re a young company and you’re raising from friends, family, angel investors and start-up accelerators. You’re raising $200K-1M, and your pre-money valuation is ~$1M-5M. You’re in the pre-product stage (developing prototypes) and probably hiring critical team members. It’s unlikely you’re past pre-revenue.

What we’d like to see:

  • 1 informational page on the team, product, terms, traction, 1-2 key competitors.

  • 12-slide pitch deck on team, product, terms, traction, IP, 1-2 key competitors, market overview.

~$1M / Seed

You’re past your pre-seed stage and you’re raising from angels, early-stage VCs and accelerators. You’re raising $1M-$4M with a pre-money valuation of ~$5M-$12M.  You have some paying customers and you’re testing a product market fit. You probably have less than 10 employees. You’re making somewhere between $100K and $1M in sales. With this round of funding, you’re planning to fuel overall growth, including product development.

What we’d like to see:

  • A short video from the founder regarding the items above.

  • A data room for investors to explore.

+ The aforementioned.

~$10M / Series A

You’re past your seed stage and you’re raising from VCs and super angels. You’re raising $10M-$25M on a pre-money valuation of $30M-$75M. You probably have 25 employees and more than 10 customers. You’re making somewhere between $1.5 and $3M in sales. You’re experiencing revenue growth and marketing is becoming increasingly important. With this round of funding, you’re planning to hire new sales and marketing staff / processes and you’re planning to make efforts to understand your ideal customer. 

What we’d like to see:

  • 15-slide pitch deck on team, product, terms, traction, IP, 1-2 key competitors, market overview, a company timeline and use of potential funds.

  • A professional website, including professional photos of the team members, product(s) and assets.

  • Testimonials / meetings available with customers.

+ The aforementioned.

~$25M / Series B

You’re past your Series A round (!), and you’re looking at VCs and late-stage VCs. Your product is at a point where it has the ability to scale. At this stage, you’re planning to use this new round of funding for expensive hires, expansion into different market segments and experiments with different revenue streams.

What we’d like to see:

  • Follow-up materials: an investor newsletter, educational materials, etc.

  • A proven CRM system.

  • FAQs for investors.

  • Recordings of public speaking engagements.

+ The aforementioned.

Over ~$25M / Series C and beyond

You’ve matured as a company, and you’re looking at late-stage VCs, private equity firms, hedge funds and banks. Your product is undergoing large-scale operations and you’re planning on moving into new markets with this new round of funding.

What we’d like to see:

  • A master due diligence questionnaire.

  • Testimonials from investors.

  • A whitepaper or book (if applicable).

  • Third party due diligence reports.

+ The aforementioned.

Regardless of funding stage, we have some overall tips:

  1. Plan to contact a lot of investors

  2. Build relationships starting yesterday

  3. Don’t burn bridges

  4. Build passion into your pitch

  5. Follow up three times

  6. Decide between metrics focus or big-vision

  7. Pre-qualify your investors

  8. Don’t run your business as if raising money is your business

  9. Practice your pitches with investors who won’t invest

  10. Draft a pitch deck right after raising a round

And a few words of advice:

  1. Raising funds for your company can consume you.  

  2. Remember why you started the company in the first place.

  3. Stay focused on your dream/goal.  

  4. Listen to potential investors but don’t let them lead you astray.

Build excitement! And have fun!