Ash Rust

Video Below

Today we’re talking about the projections you will need for your seed fundraising.

Most investors will expect something along the lines of:

  • Projections over 2–3 years, broken down quarter by quarter.
  • The line items within those projections usually cover: Payroll & Benefits, Marketing, Office Costs, General & Administrative, COGS, Revenue and Burn. You might break out one or two of these further if they are particularly important to your business.
  • Be sure to also include how you expect your team to grow over time, the roles and expected costs.
  • Lastly, the projections should show your expected runway and when, or if, you plan to fundraise again.

Best of luck out there.

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Video Below

Today, we’re talking about if it’s ok to fundraise during the summer.

I get this question a lot from founders around this time of year, and the answer is yes, it’s ok to fundraise in the summer, but it is harder.

From roughly the end of June until roughly the end of August, you’ll find 10–20% of the investors you try to reach will be on vacation. That means they’re much more likely to delay a meeting or pass all together.

To offset this, you will have to do 10–20% more outreach and meetings to get roughly the same result as if you’d fundraised at a better time, like March or October. So if you do end up fundraising in summer, expect it to take longer and to perhaps raise a little less.

Best of luck out there.

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Slides Below

Last week, I held a webinar for early stage startups on Enterprise Sales. The slides from the presentation are below and cover 4 main topics: Getting feedback, Customer profiles, Closing sales & Customer Success.

Please let me know your feedback!

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Hello everyone. Today, we’re talking about if you need a data room for your seed fundraising.

The answer is yes, you should create a data room, but no, you shouldn’t share it with potential investors.

Your data room should include the documents an investor might expect like: projections, sales materials, corp doc, employee & customer contracts, IP agreements, etc. But when a potential investor asks if you have a data room, respond by asking what documents they want to see. Don’t share the entire data room with them immediately.

This is because many investors will happily download your documents, keep the data for their research, and have almost no intention of ever investing. Make them earn that data by at least stating what they need.

Thanks a lot for watching, and best of luck out there.

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Ash Rust

Ash Rust

Pre-seed Investor. Email: ash@sterlingroad.com. B2B, US only. I work with founders for 3 months before investing. More info: http://SterlingRoad.com/process