Fundraising Guide
Due to popular demand, we've updated our VC funding benchmarks guide for startup founders preparing to fundraise from very-early stage to late stage.
"The best startups would push the frontier of technology, thereby guaranteeing market power and selling opportunities for their products." (Thomas J. Perkins, Co-founder of Kleiner Perkins)
Click to view VC funding benchmarks spreadsheet
Back the right people. People make products. Products don't make people. Only a tiny percentage of people possess the managerial and motivational capabilities to build extraordinary growth companies. (Thomas J. Davis, Jr., Co-founder of Mayfield Fund)
In the changing landscape of venture capital, how do we increase our chances of getting funded?
If you're preparing to fundraise for capital, may you find these recommended readings helpful to increase your fundability in the changing landscape of venture capital market, particularly during this market downturn.
The changing venture landscape by Mark Suster
The valuation vs. traction matrix by Jason Calacanis
From an idea to a minimum viable product: in a startup context by George Krasadakis
The five ingredients of a successful startup pitch by Romeen Sheth
Fundraising in 2022: where we are & where we're going by Tomasz Tunguz
If you're new to venture capital funding, check out these videos:
- [Beginner] If you know nothing about venture capital, watch this first by Forbes
- [Intermediate] Venture capital explained in 5 minutes by Rob Walling
- [Advanced] Venture capital defined: structure & lifecycle of VC funds by Professor Claudia Zeisberger
By the way, here's the embedded Google Sheets for your ease of reference.
I prefer to view on Google Sheets
If you wish to estimate your pre-revenue business valuation with proven models and frameworks, try our free pre-revenue business valuation simulator.
Authors
- Paul Lee, Co-founder & CEO, roiquant
- D. T. C. Lai, Co-founder & Chief Researcher, roiquant
- Josshua Chong, Associate Data Scientist, roiquant
Citation and republishing
roiquant's articles and reports may be republished in accordance with our Citation Policy and Terms of Service.
About roiquant
roiquant's (roy-kwant) affordable decision support system offers founders actionable insights to reduce risk of business failure and build business defensibility. When founders want to build valuable and successful businesses, but don’t have sufficient knowledge and resources, roiquant solutions help founders gain competitive edge, so they can make data-informed decisions to innovate and generate high return on investment.
For more information about roiquant’s award-winning solutions, visit www.roiquant.com and join roiquant community on Discord.
Affiliate partnership: EIN Presswire costs lower and is more affordable for new startups and small companies.
References
Calacanis, J. (2019). The valuation vs. traction matrix. Retrieved 31 August 2022, from https://calacanis.com/2019/03/30/the-valuation-vs-traction-matrix/
Destin, F. (2022). How Stride VC looks at startup progress levels. Retrieved 29 August 2022, from https://twitter.com/fdestin/status/1530112598242430979
Fanning, S., Poyar, K., & Kenyon, T. (2021). 2021 financial & operating benchmarks report. Retrieved 28 August 2022, from https://openviewpartners.com/2021-financial-operating-benchmarks-report/
Forbes. (2016). If you know nothing about venture capital, watch this first. Retrieved 1 September 2022, from https://youtu.be/a4aUX5u90oA
Hillenbrand, P., Kiewell, D., Ostojic, I., & Springer, G. (2021). Scale or fail: how incumbents can industrialize new-business building. Retrieved 31 August 2022, from https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/scale-or-fail-how-incumbents-can-industrialize-new-business-building
Index Ventures. (2017). Rewarding talent: a guide to stock options for European entrepreneurs. Retrieved 29 August 2022, from https://www.indexventuers.com/rewardingtalent/
Janz, C. (2019). What does it take to raise capital, in SaaS, in 2019? Retrieved 19 September 2020, from https://medium.com/point-nine-news/what-does-it-take-to-raise-capital-in-saas-in-2019-26829debef29
Kendall, J. (2021). Understanding the pre-seed ecosystem. Retrieved 30 August 2022, from https://vc-list.com/pre-seed-ecosystem/
Krasadakis, G. (2019). From an idea to a minimum viable product: in a startup context. Retrieved 31 August 2022, from https://speakerdeck.com/gkrasadakis/from-an-idea-to-a-minimum-viable-product
Murray, B. (2022). Funded SaaS companies. Retrieved 29 August 2022, from https://www.thesaascfo.com/funded-saas-companies/
Point Nine. (n.d.). SaaS funding napkin (2016-2022). Retrieved 28 August 2022, from https://twitter.com/roiquant/status/1280344866518523904
Polovets, L. (2022). Expectations for preseed vs seed vs series A rounds. Retrieved 30 August 2022, from https://twitter.com/lpolovets/status/1547046895125532672
Powell, C. (2022). Conviction in venture capital funding. Retrieved 30 August 2022, from https://www.linkedin.com/posts/courtneyjpowell_startups-vc-venturecapital-activity-6919966231508766720-o5_4/
Quintero, S. (2019). Predicting a startup valuation with data science. Retrieved 29 August 2022, from https://medium.com/journal-of-empirical-entrepreneurship/making-sense-of-startup-valuations-with-data-science-1dededaf18bb
Read, C. (2018). 2018 startup cash burn report: benchmarking spend. Retrieved 29 August 2022, from https://www.brex.com/blog/burn-rates/
Roiquant. (2022). Venture capital funding benchmarks for startups. Retrieved 30 August 2022, from https://go.roiquant.com/vc-funding-benchmarks
Roiquant. (n.d.). Pre-revenue business valuation simulation. Retrieved 10 June 2022, from https://www.roiquant.com/simulation/founders/pre-revenue-valuation
Sheth, R. (2021). The five ingredients of a successful startup pitch. Retrieved 31 August 2022, from https://twitter.com/romeensheth/status/1381029062219599874
Singh, P. (2018). Raising seed capital? Here's my guide on how to do it successfully. Retrieved 19 September 2020, from https://medium.com/swlh/raising-seed-capital-heres-your-2018-guide-on-how-to-do-it-successfully-c73c42530598
Singh, P. (2022). Evaluation criteria in VC fundraising from preseed to growth rounds. Retrieved 1 September 2022, from https://twitter.com/parulia/status/1565109614227509249
Roychowdhary, A. & Pawar, P. (2022). _Surge by Sequoia: pitfalls in finding PMF (product-market fit)._Retrieved 1 September 2022, from https://www.linkedin.com/posts/surgeahead_pmf-activity-6968497488072753152-Kv-Z/
Suster, M. (2021). The changing venture landscape. Retrieved 31 August 2022, https://bothsidesofthetable.com/the-changing-venture-landscape-6b655c68e631
Tunguz, T. (2022). Fundraising in 2022: where we are & where we're going. Retrieved 1 September 2022, from https://tomtunguz.com/fundraising-environment-2022-08-19/
Walling, R. (2022). Venture capital explained in 5 minutes. Retrieved 1 September 2022, from https://youtu.be/g8k8-o7NXVw
Zeisberger, C. (2020). Venture capital defined: structure & lifecycle of VC funds. Retrieved 1 September 2022, from https://youtu.be/zDUpaC7mkyc
If you would like to stay informed with our latest updates, subscribe to our newsletters or follow us on our social media (LinkedIn, Twitter, Facebook & Instagram).
Disclaimer: Any information, data and content on our analytics and business intelligence (ABI) platform, web applications or websites are for general information use only. The information and analyses presented on our web applications and websites do not constitute any legal, business, investment or tax advice. Even though certain information are cited from third-party sources while believed to be reliable, roiquant has not independently verified such information and makes no representations about the accuracy of the information or its appropriateness for any given situation. References to any securities or charts or graphs and all materials provided in connection with roiquant’s web applications or websites are provided strictly on “AS IS” basis without any representations or warranties, express or implied, which should not be relied upon when making any investment decision. Any projections, estimates, forecasts, targets, recommendations, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.
Our proprietary data retrieval systems scan the Internet to automatically aggregate public information from news articles, websites, press releases, regulatory filings, and so on. Roiquant's intelligent decision support system, multimodality systems, database systems, data retrieval systems, algorithmic systems, data processing engines, and many other technologies are powered by artificial intelligence and advanced analytics using our own proprietary data and synergized public data. Roiquant does not warrant the completeness or accuracy of data provided, so you would need to independently verify the information. Nevertheless, we encourage you to check the accuracy of our information before its use. We also gently advise that you obtain sufficient knowledge, market understanding, professional advice and experience to make your own evaluation of the merits and risks of any actions with the information.
Last updated on 3 November 2022.