VC: You are too early for us

Also VC: We're an early stage investor

Author

Marco Fazio
January 30, 2024

How come early stage investors buy time to invest?

Well, would you get in a relationship after 1 date?

It’s not that different.

You need several touch points with the same investor before he gets to know you, your business and your potential.

The best tool to do this is using monthly traction updates.

In this way you build trust and increase your chances of actually raising every month.

In your monthly traction update:

  • Add all the stakeholders you have calls with regarding your business

  • Be honest on progress and blockers

  • Be consistent. Send it every month until IPO or closing the business.

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Extract from Marco Fazio’s ideation to Acquisition Guide

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You have from start from scratch beacuse your business is unique.

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My Learnings (for VCs, not bootstrapping):

  • Focus on hypergrowth, not profitability until at least Series A

  • Have recurring revenue

  • Have a monthly P&L with revenue, costs, EBITDA + Your Key growth KPIs

  • Have a key KPI, a large number to grow exponentially (in my case it is revenue generated from selling branded digital assets)

  • Add key milestones to justify monthly growth changes

  • Use USD vs your local currency as the VC market is now global

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