Did you know that the due diligence process for a UK startup raising a Series A can take an average of 103 days? That’s why it’s crucial to be prepared and to know how to navigate the venture capital due diligence process. In this post, I will share my top tips for getting through due diligence and closing a successful Series A round.
Series A venture capital investors are obsessed with product-market fit. Product-market fit is arguably the most critical milestone for a startup. Very little else (if anything) will convince a Series A venture capital fund to invest if you haven’t found product-market fit.
High user churn will destroy your business, there’s no way around it. User churn kills startups. As such, it is one of the most important metrics that venture capitalists analyse before committing to an investment.
Bessemer Venture Partners state an annual 5-7% user churn rate is acceptable for their portfolio companies.
Let’s start at the beginning; what is a Series A? A “Series A” refers to a round of investment made into a startup company. It is normally the first round of financing that involves professional investors (venture capitalists). This is mainly due to the size of investment at a Series A fundraise. The average startup …
Ultimate Blog: How much should my startup raise? Read More »
Do you have any current investments that would be considered a direct rival or close competitor to me? You don’t want to be on the wrong end of a fund looking to gather competitive information to aid their current portfolio to your own detriment. Why are you particularly exited by my company and this space? …
Ultimate Blog: Questions to ask a venture capital fund Read More »
Be cautious, the most convincing venture capitalist is not necessarily the most helpful investor for your company. Several brand name investors (according to founders) are pretty useless. The wrong venture capital investor can even be detrimental to your startup. Despite what they might want you to think, the fact is that several VCs simply don’t …
Ultimate Blog: How to pick the right Venture Capital investor Read More »
I have analysed pitch decks from leading Venture Capital funds (Sequoia Capital, Y-Combinator, Accel, Greylock) and high-growth startups that successfully raised venture capital (Airbnb, LinkedIn, Facebook) to create the ultimate pitch deck template.
User churn is defined as the number of users that leave your product/service on a monthly or annual basis. It is normally expressed as a percentage against your total user base.
High user churn will destroy your business.
