Editor’s Note:David Frankel is a Managing Partner at Founder Collective, an early-stage VC firm based in Cambridge and NYC that has made investments in over 150 companies including Uber, BuzzFeed, Coupang, Makerbot, PillPack and SeatGeek.
Pitching VCs is a serious challenge at any stage, but asking for a $30-60 million check is usually the sale of a founder’s life. Convincing an investor to accept a valuation that most normal people think you’d deserve in a year’s time (at best) piles on the challenge.
I’ve recently been working with a few of our portfolio companies on these kinds of deals and wanted to summarize what we’ve seen work.
A word of warning: Most startups don’t qualify. Ten-figure checks go to those with significant tangible growth in revenue or DAUs, real margins, or a crystal-clear path to strong monetization. To qualify, your graphs should be at 45-degree angles at worst.
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