But they rejected 99.5% of the opportunities they received. In other words, they invested in maybe 5 companies for every thousand companies that sent them a pitch deck. Do you want to be one of those 5 companies that get funded?
Here’s another statistic for you. Since COVID hit, raising capital takes 2X-3X times as long, and requires outreach to 2X the number of investors.
How does that affect you? Let me break it down for you. If your company has developed a SaaS solution, SaaS being the most popular sector bf far for all investors, in 2021 if you want to guarantee you get funded, you should start at the top of the funnel by making contact with at least 150 qualified (they invest in SaaS) investors. If your Pitch Deck is SPOT ON (i.e. the right material in the right order is a pleasing presentation style) 20% of the ones you contact or 30 VC’s might arrange a call or live meeting. 20% of those or 6 VC’s might issue you a Term Sheet. Even if that happens, you probably will have to convince the Junior partner, then the Senior Partner, then the full Board, then the Investment Committee, and then pass a full criminal background check BEFORE you see a single dollar. That could take nine (9) months.
Why is it so complicated you ask?
The VC business model.
VC’s know that historically at least 50% of the Startups will fail and the VC will lose their entire investment. 25%-35% of the Startups might return the VC’s capital or even give them 2X-3X of what they invested. 10% of the Startups might return 10X upon the VC exiting. And 2%-4% of Startups might go on to become Unicorns and return the VC 100X upon going public (i.e. IPO).
So, do you want to be one of those 5 companies that get funded?
Yes? Then you have to take fundraising seriously.
You wouldn’t seek marriage advice from someone who was never married. You wouldn’t seek investment advice from someone who was penniless. And so you should not seek fundraising advice from someone who has never started a company, invested their life savings and then gone out and convinced other investors to put in their own money. Many times over…
I know what investors like Jason Calacanis, David Sachs, and Dave McClure are looking for. What excites them. I know the information you need to prepare and in what format, and how you need to present yourself if you do get a shot. And I know how to access investors like this directly, as well as hundreds of other Angel and VC investors.
What’s The Takeaway…?
This is your chance to leverage James Spurway’s 18 years of Corporate experience and 28 years of Entrepreneurial experience and learn from the many mistakes he made trying to raise capital from Angel Investors, Family Offices, and Venture Capital Investors!