How to Raise Your First Round of Funding

Your job as a founder is to showcase the market opportunity of your startup idea by doing the appropriate market research.

You will need a one-pager (or executive summary), pitch deck (10- 15 slides) and your financial model.

You need to create an incorporated entity along with a capitalization table (aka a "Cap Table") to issue shares to future investors.

Fundraising requires a significant amount of time and effort. Investors need see a founder committed to building a profitable business.

You need to calculate how much money is needed in order to achieve meaningful milestones for your company and investors.

There are three main types of investors. (1) Friends & family. (2) Angel investors. (3) Venture capitalists. Each invests at different stages of a startup.

You need to find one "lead" investor to close your round. This investor should be interested in your market segment and believe in your ability to build a scalable business.

Funding rounds can take anywhere from two weeks to eight months to close. There are multiple variables to consider, such as the economy, investor confidence, etc.

Use platforms like Crunchbase, Linkedin, or AngelList to research and find relevant investors that previously invested in similar companies.

Reach out to other founders from the investor's portfolio, get them excited about your startup idea, and then ask for a warm introduction.

It is recommended to set-up meetings with 25 target investors per week over a three to four week period

Use the guides and glossaries below for a comprehensive overview of fundraising terminology.

Relevant documentation around company formation, customers, intellectual property, etc. should be included in your virtual data room.

Once the amount you were looking to raise has been committed and the necessary documentation has been signed.