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VC: You are too early for us
Also VC: We're an early stage investor
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.
Reply “yes” to [email protected] & receive an example of my monthly traction update you can copy & adapt right away.
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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I launched litotravel.com in 2021, got into Forbes 30 under 30 retail and sold it in 2023.
I wrote a guide about it! Check it out
PS: this is a bootstrapped business with my savings and no investors - some say even more learnings!
Extract from Marco Fazio’s ideation to Acquisition Guide
Less is more!
Most people attention span is nowadays short - that counts for VCs as well.
Build a one-pager for warm intros or cold outreach attachment on LinkedIn.
Get HYPES+ and copy mine! (it’s free for 14 days)
I’ve seen tons of templates on how to build a financial model.
The truth?
They rarely apply to you.
You have from start from scratch beacuse your business is unique.
If not unique, it will hardly be interesting for early stage VCs.
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
Upgrade to HYPES+ for $0 for the first 14 days to receive mine.
VC: At which valuation are you raising?
Founder: right… $15M?
Don’t make this mistake. Have a simulation of your round, with share ownership and dilution forecasts of current and future investors.
Get HYPES+ and copy mine! (it’s free for 14 days)
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