With #YCombinator demo day just a week away, many #YCS23 founders in the batch are in pitch mode, aiming to lock down a term sheet pre demo day. Back in 2018 I did just that. Here’s my story…. A week before Y Combinator demo day at least 10 funds had rejected me and my vision for community software. I had one more shot. It was the spring of 2018 in Palo Alto, and I had eaten a day-old sandwich for breakfast from Driftwood Deli that morning. I was mildly delusional from lack of sleep as I arrived at the Forerunner Ventures office. The General Partners entered the room and I pitched. They knew everything about the problem I was solving and seemed to agree it was something people would want. They asked detailed questions and seemed like genuinely good human beings. But the ball was in their court… Walking back down El Camino Real to the Palo Alto garage we had rented, I FaceTimed my team. But I got a call midway through. It was the Forerunner Partner. ‘We’d like to give you a term sheet and lead the round.’ Queue elation, a quick celebration, then back to work! 🚀 So, how do you raise a round pre demo day? Here’s what worked for me: 1. Do your research on which seed fund shares your world view - Read the website - Check out the partners social channels - Understand who’s in the portfolio and how you would fit 2. Get to know the principals and partners at the fund ahead of time, in a human way Meet up for a coffee to get to know them ahead of the official raise. Figure out if they are the type of investor you can see yourself working with through the good times and the bad. 3. Don’t pitch the fund you really want to work with first Get reps in with at least 5-6 others first. You’ll build and rebuild the slides 100 times but you’ll be really ready when the day comes. 4. Avoid glamorous multi-stage funds It can be great if a big name leads your seed round, but you then have a ton of pressure to deliver for the series A. If that big name fund doesn’t lean in to lead your next round, you’ll find it difficult to convince others why they should. 5. Don’t shop the term sheet or pretend you have one already. Yes you want to drive urgency and not dilute too much, but if you’ve got the fund you really want onboard stick with them. Silicon Valley is a repeat player game and people remember how you treat them. Stay heads down building for as long as possible before you start pitching. Nothing gets VCs excited more than a truly great product demo with early traction. Now I’m on the other side of the table with Brian Cho and Jason Yeh at Patron looking for ambitious founders with real grit. Good luck #YCS23 #founders and remember don’t eat day old sandwiches ;) #seedfunding #seedrounds #venturecapital
Vishal Lugani
8mo
Excellent vignette and an inspiration for founders. But…who walks down El Camino Real?
Meagan Loyst
8mo
such great advice. and outfit on point as always 🤪
Cool story
Great advice all round. Taking notes.
Matt Penneycard
8mo
spot on advice from Amber as usual
Alexandra Reiner
8mo
Early traction for the win! great advice!
Joe Gannon
8mo
Amber Atherton Amazing. Golden advice Reece Griffiths this might be interesting for you on your journey!
Malcolm Lewis
8mo
Great advice Amber Atherton. I especially like (3). Your pitch deck is never done. Quickly develop v1 to the best of your ability and then immediately start testing it by presenting it as often as possible. Bloody your nose. You’ll quickly see patterns. Where do people get excited? What do they get hung up on? Keep buffing out the rough spots until it’s as smooth as silk.
Early Stage Investor
8moNever forget…! Courtney McColgan Alyson (Friedensohn) Watson Sam Browne Austin Woolridge Alex Atallah Kevin Tan Ivan Zhou