Finance Arena

Reason Street

Fundraising Readiness
for Innovation Norway

I'm ready to fundraise on the international markets and need to practice my pitch, learn the cultural differences, and understand how to manage my fundraising process

Welcome, you are ready to raise on the international markets. 

Fundraising Culture Shock: Preparing for Upside Down Worlds when Raising Capital Across Boarders

The Process

Depending on where you are, your process will have to change when raising on international capital markets infused with Bay Area dynamics. 

The Dance

Negotiation rituals, behaviors, and document sharing are different when you are dealing in high competition markets that like to move fast and invest big.

The VC View

Funders in Bay Area infused ecosystems have different measures for valuation and think differently about your role in the company.

The Checklist: Have These Assets and Resources Ready to Go

Rehearsed 3 minute story
compelling story 100%
Send Ahead Presentation
20 slides or less clear narrative readable on phone 100%
Longer form conversation deck
practiced narrative and practiced questions and answers 100%
Lawyer with experience in startup docs in the market of your intended lead investor
get a lawyer! 100%
Business model with unit economics, assumptions, and scenarios
ready to share with investor to stress test how you think and strategize together 70%
At least 50 investors well-researched in a CRM or list
start with 50, aim to add to 100 as you go 50%

Fundraising 2023: US Still Deploying Capital to Companies with Proven Traction

While fundraising is not impossible, only companies with predictable revenue, possibility for profitability, and/or focusing on themes like AI are receiving investment. The US is the one geography where funds are still deploying capital to early stage investment.

After a disappointing 2022, the global venture funding landscape experienced further decline during the initial quarter of this year.

Analyzing the latest data from CB Insights, we delved into the prevailing trends within the realm of venture capital. The key findings include:

Despite a significant $6.5 billion deal by Stripe, global venture funding continued its downward trajectory in Q1’23.

In Q1’23, all major regions witnessed a substantial decrease of double-digit proportions in funding, except for the United States.

The creation of new unicorns, companies valued at over $1 billion, hit a six-year low, with only 13 unicorns emerging in Q1’23.

The median deal size for late-stage funding rounds experienced a considerable decline, dipping below the median deal size for mid-stage rounds.

Quarterly initial public offerings (IPOs) plummeted by 47%, reaching their lowest point in nearly ten years.

Additional Useful Preparation

How to Get Meetings with Investors and Raise Money by Aaron Harris

Great description of how to write a bad cold email [18:12]

And how to write a great cold email [20:02]

How to write a great email:

Do research on the investor, investment thesis, past portfolio investments .

Reference these in relationship to your concept and business.

Fundraising Fundamentals By Geoff Ralston

Basics for Seed Round for Angels on West Coast

Useful for founders who have not pitched to angels in the West Coast who do not all want to see a deck, just the story.

Heuristics around fundraising

Seed round founders typically give up 10-15%

Series A 25-30%

Series B highly variable (20%~)

Startupfest 2019 – How to fundraise Jonathan Lowenhar 

This talk will cover revealing topics such as the “the 28 questions all investors ask.”

Have these questions answered before you start.

What represents a “minimum viable investor funnel.”