The Ultimate Guide to Raise Capital for a Startup

The Ultimate Guide

to Raise Capital

for a Startup

1

At a Glance

The Basics: Investor and Funding Types

How to Choose the Right Investor for Your Startup

How to Find Investors

Insider Tips When Preparing to Talk to Investors

How to Nail Your Pitch and Pitch Deck

How Crunchbase Pro Can Help

2

How to Raise

Startup Capital:

An Overview

If you don¡¯t want to raise capital, don¡¯t become a CEO. Raising capital is a CEO¡¯s most

important and time-consuming job. Delivering a compelling and organic pitch needs

not only practice, but finesse. We understand that pitching can place entrepreneurs

in a vulnerable position ¨C after all, what is more personal than your passion?

We break down the basics based on the pros¡¯ advice. Here¡¯s a rundown on how to

find, cultivate, and build the most important partnerships in your business.

3

The Basics:

The Different Startup Funding Rounds

Venture Capital

Corporate

Mezzanine

Mid-Stage

Early-Stage

Seed-Stage

$

Series A

Series B

Series B

Series C

Late Stage

Growth

Series C+

Leverage

Buyout

Private Equity

Round

$$$

How Venture Capital Funding

Rounds Differ: The Breakdown

Average Range (USD)

$20M $300M

Typical Company Valuation

$300M

$250M

$200M

$150M

$100M $120M

$100M

$50M

< $1M

Type

Investor

type

$1M $3M

$150K

$1.5M

$3M $6M

$1M

$15M

$10M

$15M

$5M $35M

$30M $60M

Pre-seed

Seed

Series A

Series B

Series C+

? Same as

seed investors

? Angels

? VCs

? VCs

? Late-stage VCs

? Early-stage VCs

? Super angels

? Late-stage VCs

? Private equity firms

? Friends and family

? Early-stage angels

? Accelerators

? Hedge funds

? Banks

? Startup accelerators

Typical

Company

Stage

Raise

Typically

Spent on

Pre-product

? Signs of productmarket fit

? Revenue growth

? Some traction

? Marketing becomes

increasingly

important

? Hiring critical

team members

? Fuels growing

beyond funding

? New sales and

marketing processes

? Developing prototype

products

? Funds product

development

? Understanding ideal

customer

? Ability to scale

? Large-scale

operations

? Expensive hires

? Moving into

new markets

? Expands into different

market segments

? Fuel acquisitions

? Experiment with

different revenue

streams

Source: From Pre-Seed to Series C: Startup

Funding Rounds Explained (Ryan Law)

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