This advice from Mark Suster may be targeted to ventures raising equity funding from VCs, but much of it applies to planning any fundraising campaign.
Hollywood pitches and investor pitches have three common characteristics.
Instead of asking friends if they know “any investors”, use Angel List and other sources to create a target list.
Here are some of the things founders can say or do that will immediately brand them as amateurs or sub-par performers in the eyes of prospective investors.
A checklist of what to have ready when you are raising money. Works best for a venture capital raise, but is applicable to an angel round as well.
Understand why vesting of stock grants is important plus some rules of thumb for implementing a plan (including acceleration).
Too little and you don’t accomplish what you want. Too much and you probably have some expensive money left over once your venture is worth a lot more. Just right? Fred Wilson simplifies the thinking process that leads you to the right amount.
A thorough walk-through by Chris Dixon for those new to seed financing. The post links out where appropriate to more detailed information.
If you are new to fundraising and need to know the the difference between an angel investor and a VC, here you go.
This Mark Suster article overviews the top level process or path a venture will face as it seeks equity investment. It focuses on raising venture capital, but the basic advice works equally well for angel investment.
Startup L. Jackson tweets hilarious and insightful commentary about the tech startup world (follow @StartupLJackson). Infrequently, like now, he writes a more in depth blog post that is crazy insightful.
This post gives advice to the Y-Combinator class as they get ready to raise capital. It advises the startup how to take ownership of its fundraising process. Most importantly, he advises to know what capital the company will need in an A round (the round after the one they are raising now), then determine what resources and goals it will need to achieve to be prepared to raise that kind of an A round, and then to structure its seed round to get there.
Like other brilliant advice, it sounds like common sense – after you read it. There’s more good stuff, too – go read it.