Bootstrapping and Fundraising

Funding Basics

• Startup Funding Resource Pillar:  https://fi.co/first-startup-funding 

• Guides, templates, checklists, and videos to help with your fundraising journey

• 7 Sources of Pre-Seed Funding:  https://www.failory.com/blog/pre-seed-funding

• What is Pre-Seed funding, how it works, and where you can find capital

• Fundraising Strategy Guide (Founder):  https://fi.co/guides/1091 

• How to get started, who to target, and what do after you have your lead investor

• How to Raise a Funding Round:  https://fi.co/guides/1281

• What investors are looking for and how to protect your first funders

• Beginner’s Dictionary of Venture Capital:  https://mattermark.com/venture-capital-dictionary/

• Common terms defined

• Reasons Why Investors Won’t Invest in Your Startup:  https://fastercapital.com/content/What-are-red-flags-for-investors-when-evaluating-a-startup.html

• Business model-related red flags that deter an investor

Funding Benchmarks

• Startup Funding Benchmarks:  https://fi.co/benchmarks

• Baseline “traction” metrics investors need to see

Bootstrapping (No Outside Capital)

• Essential Tips for Bootstrapping:  https://fi.co/insight/bootstrapping-a-startup-the-essential-tips

• What it is and how to successfully bootstrap your startup

• How to Bootstrap your First Startup:  https://www.seedready.org/journal/how-to-bootstrap-a-startup/

• The three stages of bootstrapping and methods to grow without outside capital

• Guide to Revenue-Based Financing:  https://www.capchase.com/blog/a-guide-to-revenue-based-financing-for-founders

• For founders with steady, recurring revenue

Crowdfunding

• What is Crowdfunding?  https://republic.com/blog/investor-education/what-is-crowdfunding-and-how-does-it-work

• Types of crowdfunding and tips to make a campaign successful

SAFEs and Convertible Notes

• Comparing Convertible Notes, SAFEs, and Priced Rounds:  https://carta.com/blog/convertibles-safes-priced-rounds/

• General overview on these different fundraising types; pros and cons

• SAFE Financing Documents:  https://www.ycombinator.com/documents

• The industry standard from Y Combinator

• Understanding SAFEs and Price Equity Rounds (Video):  https://www.ycombinator.com/library/6m-understanding-safes-and-priced-equity-rounds

• In-depth outline of what is in the SAFE agreement, plus examples that walk through the investment math

• SAFE Terminology Definitions:  https://www.upcounsel.com/safe-notes

• General terms defined and items to consider 

• What is a Convertible Note?  https://visible.vc/blog/convertible-notes/

• What it is, general terms defined, and how they’re used

• Convertible Note Conversion Examples:  https://www.seedinvest.com/blog/angel-investing/how-convertible-notes-work

• Walk-through of what happens when a convertible note converts into equity

Valuations

• What is a 409A Valuation?  https://carta.com/blog/what-is-a-409a-valuation/

• Key concepts behind a 409A valuation and when you need one

• 7 Ways Investors Can Value Pre-Revenue Companies:  https://masschallenge.org/articles/how-to-value-a-startup-company-with-no-revenue/

• Common startup valuation methods

• 10 Valuation Methods for Pre- and Post-Revenue Companies:  https://www.startups.com/library/expert-advice/startup-valuation-methods

• Additional methodologies to determine valuation

Data Rooms

• Guide to Data Rooms:  https://a16z.com/2022/08/25/the-insiders-guide-to-data-rooms-what-to-know-before-you-raise/

• What is a data room, what to include, and what investors want to see by industry

Due Diligence

• Due Diligence Checklist:  https://www.docsend.com/blog/due-diligence-checklist/

• What is Due Diligence and what to prepare to include in your data room

• 6 Ways to Pre-Empt 90% of Due Diligence:  http://christophjanz.blogspot.com/2015/05/6-things-to-pre-empt-90-of-due-diligence.html?spref=tw

• How to prepare for due diligence questions

Advisory Board Meetings

• Advisory Board Agenda Template:  https://dave.moskovitz.co.nz/2017/02/15/pre-seed-advisory-board-agenda-template/

• How to structure a one-hour Advisory Board meeting