Craig Matthews’ Post

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Founder at ICCE Growth Partners & Technical Recruiter at Ceros

I have spoken with more early-stage Founders in the first half of this year than any other full year previously. A lot of the time, a big focus for them is around fundraising and it's always high on the discussion agenda (both pre and post raising). Questions like the below are front of centre of them conversations: ▶ What advice can you give me when I'm sitting down with an investor? ▶ What do you think of my pitch deck? ▶ Is there anyone you can introduce me to who's interested in what I'm building? ▶ Once we've raised, how do we start building but keeping the runway extended as long as possible? I received a great email from Hustle Fund earlier in the month with the clear message to Founders to know your numbers and know them in detail. I hope they don't mind me sharing but below are 5 areas they shared that a Founder(s) must know and be able to talk about. There are definitely more you need to be prepared to discuss but these are ones you should absolutely know. 𝟭. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 🔹 How much revenue did you earn this month? Last month? The month before? 🔹 Which acquisition channels drove revenue? 🔹 What is the cost of your product (or subscription)? 🔹 How much of your revenue is attributed to the product vs. your consulting services? 🔹 Excluding marketing, what are your margins? 𝟮. 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 🔹 What is your cost per acquisition? 🔹 What is your website conversion rate? 🔹 How many daily active users do you have? How many monthly? 🔹 What is your retention rate?  🔹 What is your monthly churn? 𝟯. 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 🔹 How much have you raised to date?  🔹 How much are you raising now? 🔹 What were the terms in your last round? 🔹 What are the terms in this round?   𝟰. 𝗠𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 🔹 What milestones do you expect to hit with this raise? 🔹 What metrics do you care about when measuring the health of your business? Why?   𝟱. 𝗦𝗹𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝗗𝗶𝗰𝗶𝗻𝗴 🔹 How have your conversion rates changed over time? Have they increased, decreased, or stayed the same? 🔹 How have different customer acquisition channels performed? For example, what is the difference in conversion rate between Facebook ads versus LinkedIn ads? I hope the above helps guide the Founders out there who are engaging in conversations with VC's / Investors. I'm happy to talk through with anyone in my network who would appreciate a sounding board going into investor meetings, would like to discuss support in getting ready to raise or you have raised and need support around next steps. #founders #startups #investors #vcs

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