#54- Fundraising, storytelling and pitching
Highlighting my good reads on fundraising, storytelling, and pitching
If I search Zepto on Twitter, I get these in top 3 👇
And then….
Despite the on-demand and quick-delivery segment being red hot1 and having incumbents2 with deep pockets globally3, a relatively new startup with untested founders are on their way to raise $160mn in a space of months4.
These are young founders in a deeply competitive space flush with capital - isn’t this a recipe for disaster? So why have they been able to mop up an ungodly amount of capital? And more importantly how can you do it for your startup?
I am no fundraising expert. I have raised exactly Rs. 0 for my startup or my portfolio. I have not pitched to anyone in my life except a few disastrous job interviews. So I am not going to sit here and share intangible and philosophical gyaan on fundraising. Instead I will share good reads from experts who have done it in the past.
📙Playbook for fundraising - Fundraising is a nerve-racking, anxiety inducing process encompassing sleepless nights, sweaty palms and inbox full of rejections. Despite us being in a world flush with liquidity5, magnanimous funding rounds, termsheet shopping, and sky-high valuations - most founders will end the day with an inbox full of rejection emails.
The apparent custodians of capital seem to shove capital in the throats of those who have the ability to raise again and again, and turn off the taps for those who cant. The fundraising process is ambiguous, opaque and an ego-trip for those who control the caches.
This blog is a god sent playbook for fundraising for founders who are looking to raise capital. The author breaks down the process into 4 detailed parts: Preparation, Outreach, Navigating the process, and Partner meetings + closing. This is one of the most comprehensive funding guides I’ve ever read.
📈 Showing validation when you have none - Most startups at pre-seed or seed stage do not have validation. These businesses rely on the good books of investors to fund their expenses.
But the problem with startups is that most founders are first-time entrepreneurs with a good tech background but really struggle to tell their story. On top of that, they are entrusted with the job of selling the vision of the company which does not have any market validation or momentum.
The author tells us how he faced and solved this exact problem and also managed to raise a seed and series A round with two examples. A very good 3-min read.
🗣️Art of pitching - Let’s face it, we are pitching all the time. Whether it is a kid who wants the latest Playstation, or a teenager wanting to go on a Goa trip with friends, or a college graduate looking for a job, or a startup founder looking for funds. The author shares an anecdote where he pitched for an idea to his organization but did not have the conviction to back and advocate for himself only to see his idea being implemented few years down the line.
I have made this same mistake during my time as a public equity analyst. I found amazing investible opportunities and pitched to my firm, but when I faced some resistance or questions, I backed down and didn’t advocate for myself, nor did I keep digging for evidence validating my investment thesis. Those investments would have returned 3-6x the invested capital in the next 2 years. One of them is a portfolio company of the fund today, and one of them is actively in the investment watchlist. I kick myself in the back for not following through and not having the conviction in myself. Those investments as a first year analyst would have made my career.
The author shares how to pitch or an idea in your company. He didn’t publish it when I needed to read it, but today you have it in your inbox!
Until next time! 👋