VC Dealflow Funnel BRAND +
MARKETING = STORY THESIS + “VALUE-ADD” = DIFFERENT THESIS: what/how you plan to invest BRAND: use your value-add to attract companies MARKETING: activities that generate dealflow EVALUATION: filter dealflow before taking mtgs MEETINGS: in-person evaluation and DD Qs DEAL MEMO: document deals you want to do and why NEGOTIATION: specify terms and make / close offer INVESTMENT: wire the money! . . . . . . (then wait . . . 7-15 years) . . . . . . OMG! UNICORNS! EVALUATION MEETING DEAL MEMO TERM SHEET DEALFLOW UNICORNS! 1 INVEST
Your Investment Thesis Are there
competitors with a similar thesis? Why are you different or better? Why will great companies come to you instead of other competitors? 2 What kind of VC do you want to be? • Stage, geography, industry vertical? • Fund size, check size, follow-on checks? • Will you lead rounds? Take board seats? Why you? Can you do this (>3x and 20%)? • Can you raise money? • Can you get dealflow? • Can you help companies? How? Q:
How You Help: Brand +
Competitive Positioning 3 You (The Awesome VC!) Competing Investors Target Portfolio Companies • What you can do (well) • What you do that is better or different • What you promote or promise (your brand value) • What they want • What they need • What makes a difference • What they say they can/will do • What they actually can/will do (well) • What they do that really matters
Branding + Marketing: How to
Generate Dealflow What’s your name / logo / soundbite / unique value proposition? ü What’s the story you’re going to tell the market? 4 BRAND SUPERPOWER What makes you special? Why are you different? ü Is there something you can do that will make companies come to you? MARKETING Activities /communications to LPs, founders, press, etc. ü Content: Writing/blogging, speaking, training ü Services: Are there services you can provide to startups to generate interest? ü Founders: Where do the founders you want to invest in hang out? FIND THEM! ü Networking: Who do you need to know in the industry? VCs? Scientists? Partners? ü PR Strategy: Who can help generate news about you / your firm / your strategy? ü Events + Conferences: Should you speak? Attend industry events? Run industry events? ü Online Platforms / Other Investors
Help Framework: Why, Who, When,
What + How? Define your “Help Framework.” • What will you do? • Who will you help? • For how long? • Until something happens? Or forever? • Tell them what you expect to get back. 5 What is your unique Help Superpower? • Product development • Marketing / sales • People / recruiting / hiring • Operations / process • Raise more capital. [helpful but not unique] Why help companies? • Just help them win! (goodwill) • Help them with something you’re good at (value-add) • Find out how they are doing (metrics) • Build your reputation (better dealflow) • Earn right to participate in future rounds. Who should you help? For how long? • Only winners? Everyone? Even losers? • Until next round? Forever? • Until they “win” (or fail to win)? • Board seats / advisor seats? • Define when and how you will pull the ripcord.
INVESTMENT THESIS (more details) WINNERS
/ CASE STUDIES (1 slide per win) TEAM BIOS (1 slide per GP) ADVISORS / MENTOR NETWORK (profiles) EXAMPLES OF DEALFLOW-GENERATING ACTIVITY SAMPLE DEAL MEMO FUND TERMS / LEGAL / BRAND / TERMS / IMAGE Fundraising: Key Slides in Your Pitch Deck CORE DECK (10 slides) 6 APPENDIX SLIDES Emphasize if you have HOT thesis, pedigree, experience, and/or track record. Or emphasize these items if you don’t. COVER: Name / brand / image THESIS: Basic fund concept + goals TEAM: Bios / academic / work Experience TRACK RECORD: Previous portfolio / top 3 deals SUPERPOWER: Services / value-add COMPETITION: Differentiation / SWOT analysis DEALFLOW: Marketing / how to get deals SELECTION: Criteria / DD / process FUND MODEL: [ spreadsheet here ] CAPITAL: AUM / current LPs / fundraising
How to develop strategies to raise capital and attract entrepreneurs for your VC fund.