Jeff "fuzzy" Wenzel’s Post

When to raise funding (for 90% of startups): ⏱️ Earliest time: Problem/Solution Fit Investors today don’t fund product development but traction. Problem/Solution fit is when you validate demand for your product and go from hoping people will buy to knowing they will. What they buy: Promising pipeline with tangible customer commitments 🚀 Optimal time: Product/Market Fit Before product/market fit, your goals and investors' goals are misaligned. You need to learn, and they want growth. After product/market fit, you both need and want growth. What they buy: Repeatable and scalable business model with 10x growth potential. 👊 Ideal time: Never :) Bootstrap and build a profitable and scalable business powered by happy customers. Prioritize customer-funding over investor-funding first. You often find that you never really needed the latter after all.

One critical observation in the valuation landscape is the interplay between pre-money and post-money valuations, especially during funding rounds. As businesses evolve, the percentage of ownership for existing founders typically decreases due to dilution. This shift can feel daunting, but it often signals growth potential. Looking ahead, we can anticipate that investors will continue to seek innovative startups, causing pre-money valuations to rise alongside competition. To prepare for this change, focus on strengthening your business fundamentals and clearly communicating your unique value proposition. Establish a comprehensive understanding of how funding affects your company’s structure and ownership. We invite you to reflect on your experiences with valuation and share your predictions. What trends do you foresee in the coming years? Let’s collaborate and support each other in navigating this dynamic industry.

In the words of Pareto, 80% of results come from 20% of the effort. That’s why I prioritise cash, revenue, and profit when tackling my daily tasks. It’s a simple cost-benefit analysis – focus on what drives the most impact first. For the final 20% of tasks that take 80% of the time, I always ask: Is this worth my time? In startups, time is money. So, focus on what moves the needle – fast. ♻️ Repost if you agree.

Don't join a series A startup Unless you believe they can achieve the  Double triple, triple double. Here's the math: Series A ARR: $1,5M Year 1 post A, growth: 3x = $4,5M Year 2 post A, growth: 3x = $13,5M Year 3 post A, growth: 2x = $27M Year 4 post A, growth: 2x = $54M Year 5 post A, growth: 2x = $108M Achieving this in 5 years is the gold standard. It's what VC-backed founders shoot for. At a 10x valuation multiple they get the $1 billion outcome. This is the basis upon which most VC funds are built. If you're in go-to-market. Marketing, Sales, Customer Success Don't fool yourself. You're also signing up to this. And yet at series A what we find is Rather than being ready to do the double triple, triple double Founders often still haven't validated product market fit, often not close. They're wracked with GTM debt. It's a very common pattern at Series A We specialize in analyzing that GTM debt Prioritizing the debt pay down And setting founders on the path to the relative safety of scale. We've been doing this since 1998. And we're proud that companies we've helped Are achieving the double triple, triple double 🚀 For a deeper dive on 'the how' Take part in our alpha GTM Debt self-assessment... ...Drop me a DM, I'll get you on the waitlist. Can't wait until then? Let's chat. 📞 #sales #saas #startups #gtmdebt #venturecapital

𝗧𝗵𝗲 𝗨𝗹𝘁𝗶𝗺𝗮𝘁𝗲 𝗚𝘂𝗶𝗱𝗲 𝘁𝗼 𝗦𝗲𝗲𝗱 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 Raising seed capital is a critical milestone for startups looking to grow and compete. This guide provides key insights to help founders navigate the process: 1️⃣ Why Raise Seed Capital? Most startups require external funding to scale operations, develop products, and sustain growth. Bootstrapping is an option, but raising capital offers competitive advantages like hiring top talent and boosting marketing efforts. 2️⃣ When to Raise? Fundraise when you’ve identified your market opportunity, defined your customer, and achieved early traction. A 10% weekly growth rate over several weeks is a strong signal to investors. 3️⃣ How Much to Raise? Secure enough funding to last 12–18 months or achieve key milestones. This prepares you for the next round while minimizing dilution. 4️⃣ Funding Instruments: Convertible debt provides a cap and discount, converting to equity in future rounds. SAFEs (Simple Agreements for Future Equity) simplify the process by eliminating interest rates and repayment timelines. Equity rounds, while less common for seed stages, involve setting a valuation and issuing shares, often at a higher complexity and cost. 5️⃣ Finding Investors: Build relationships through warm introductions, demo days, or platforms like AngelList and Kickstarter. Focus on angels and VCs aligned with your vision. 6️⃣ Closing the Deal: Momentum is key. Secure commitments quickly and use standardized documents like YC’s SAFE to streamline the process. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

I want to share with you some wisdom... 💥Real-World Startup Cash Flow Wisdom💥 Cash is king, but growth is the kingdom. Smart startups know the secret isn't hoarding every penny—it's strategic spending. Cut the fat ruthlessly: no fancy offices, minimal overhead. Invest only in things that directly move the needle: product development, key hires, and customer acquisition channels that deliver real ROI. Treat your runway like oxygen. Always know exactly how many months of cash you've got and what milestones you need to hit before the next funding round. Negotiate everything—vendor contracts, salaries, software subscriptions. Remember...Every saved pound is a pound that can fuel your next big leap. Build relationships with investors who get your vision. The right money isn't just capital, it's a partnership that understands your growth trajectory👍 #Velocitech #Techsector #Businessaccelerator #Innovation #Growthmindset #Consulting

For a long time, I was confused about what venture scale actually means. It’s a term that gets thrown around a lot, but understanding it is crucial to knowing whether you’re running a venture-backable business or not. Venture scale is about achieving rapid and substantial growth. It’s about having a business model that can expand quickly and efficiently to capture significant market share. Here’s what it entails: 1️⃣ Rapid Expansion: Scaling quickly to dominate the market. 2️⃣ Scalability: Ensuring your business model can grow without a proportional increase in costs. 3️⃣ Product-Market Fit: Validating that your product meets market needs before scaling. 4️⃣ Operational Efficiency: Streamlining operations to handle increased demand smoothly. 5️⃣ Long-Term Plan: Being extremely valuable in the future. Scaling a startup isn’t just about growth—it’s about smart, sustainable expansion.

💡Balancing growth with sustainability: Mastering the burn rate is crucial for startup success. Understand, control, and optimize spending to ensure long-term viability. #BusinessFinance #StartupTips 🚀 Read More: https://lnkd.in/g_mr4tCd

Here’s the most common ISSUE with startup financial projections… Over-optimistic revenue assumptions 🚀 🚀 🚀 It’s very common to see Y5 revenue projections from pre-seed startups at £100m+ 🤑 While a few companies may achieve this kind of growth, it’s statistically highly improbable. For first-time founders, investors will more often than not assume naivety rather than admiring your ambition. Here are some common mistakes you might be making: 📅 Optimistic launch timing (things always take longer than expected, especially if tech is involved) 📈 Linear or exponential growth rates (it’s much more likely to stutter and stall, with a general upwards trend) ⏰ Underestimating sales pipelines and onboarding timings (especially B2B) 💰Overestimating the price people will be willing to pay for your product (and upgrades) ♻️ Underestimating churn rates (or overestimating retention) So what is a ‘sensible’ Y5 revenue projection for a pre-seed startup then? Of course, each business and sector will be different, but I always think somewhere between £20-25m is likely to be about the right balance of ambition and pragmatism, while still likely meeting very early investor return / MoM requirements. Can you do better than this? Absolutely - this is not your ceiling, it just shows investors you are realistic. The investment should still make sense under prudent assumptions. Does anyone have an alternative take on this? ----------     As always, if you need further support with your fundraising, financial modelling or financial strategy, don’t hesitate to get in touch 🤝     👍 Like to see more content like this  💬 Comment to share your thoughts  ♻️ Repost to help founders in your network    #FinancialModelling #Fundraising #Startups #ModelPro

✅ Here's a terrific post from, Alejandro Cremades, a connection of our CEO/GP, John Majeski. 📖 All founders seeking Seed Investment - anywhere in the world - should read through this guide from Y Combinator. 〰️ In Alejandro's post below he also provides a link to Peter Thiele's pitch deck template which we are a fan of (in terms of content and flow). BUILD🛠️>GROW📈>FUND💰>EXIT🦄 [email protected] #venturecapital #innovation #future #technology #startups