Re:Firebase fundraising lessons learned
by wensing on Thursday June 21, 2012 @11:30PM
(#4145242)
Someone please say something intelligent but not begrudging about the fact that only having to spend 27 days raising $1.1 million is such an abnormally short time frame that while interesting the "lessons learned" will probably not be transferrable to the vast majority of entrepreneurs.
Re:Firebase fundraising lessons learned
by avree on Thursday June 21, 2012 @11:37PM
(#4145260)
Have you ever raised large amounts of funding? (I see you have a $45k seed on your current company) A month has been pretty standard in my experience, even raising larger (A) rounds.
Fundraising is a big drain on founding team bandwidth, so there's obviously incentive to get it done as soon as possible.
Re:Firebase fundraising lessons learned
by shykes on Friday June 22, 2012 @12:39AM
(#4145428)
1 month is a reasonable amount of time when you have the head start of YC demo day, or something equivalent, which conveniently corrals 100+ investors to sit down and listen to your pitch with an expectation that your odds of success are higher-than-average.
If you don't have that, though, you need to spend time lining up enough interested investors in a short enough time window to build up that artificial sense of scarcity, and that can take a lot more than 1 month.
Re:Firebase fundraising lessons learned
by colinplamondon on Thursday June 21, 2012 @11:37PM
(#4145261)
If it takes much longer, it's probably because it's a company that should be raising, or that the company failed to properly prime interest prior to fundraising. Once you begin fundraising, it's extremely, extremely bad for the process to draw out. From the first time you ask for term sheets, you should be able to fill the round fast.
Re:Firebase fundraising lessons learned
by il on Thursday June 21, 2012 @11:35PM
(#4145254)
Why do you think that? If you're focusing 100% on raising money and taking meetings every day, 4-5 weeks spent fundraising is about average, at least in Silicon Valley.
Re:Firebase fundraising lessons learned
by il on Friday June 22, 2012 @12:26AM
(#4145398)
Angel and VC are completely different fundraising processes.
An angel might commit to invest $50K after one 45 minute meeting. A VC could give you $5M, but it will always take multiple meetings, thorough due diligence, the approval of all the partners, etc.
Fundraising is a big drain on founding team bandwidth, so there's obviously incentive to get it done as soon as possible.
If you don't have that, though, you need to spend time lining up enough interested investors in a short enough time window to build up that artificial sense of scarcity, and that can take a lot more than 1 month.
An angel might commit to invest $50K after one 45 minute meeting. A VC could give you $5M, but it will always take multiple meetings, thorough due diligence, the approval of all the partners, etc.