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MenuI'm in Germany and want to get funding for my successful startup. Which VCs should I get in touch with?
B2B SaaS, 1 year old, more than 1400 paying subscribers. Everything has been bootstrapped until now.
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Honestly kickstarter is a brilliant site for startup funding and it will help you get the word out. If your start up is as good as you think then you might even get even more funding money than you had thought.
You need to look at your startup in stages. If you are getting revenue in your business and have 1400 subscribers, what execution plan do you have in place to GROW, and how much money do you need to do so? Even at this level, I believe you are still considered as early stage seed and still would be looking for small/med Angel to help you boost your existing traction. You are in a good position to look for smart money investor that will have the contacts and network to take you to Series A. Since your company is enjoying good cash flow, take your time to find the right investors that will maximise your evaluation for the next round.
First off: Well done! You're over 1000 paying subscribers. That's not easy and a good metric to reach.
Having said that - everything depends on your vertical, lifetime value of the customer, cost of customer acquisition, network effect etc.
Should this all bear out well - there are a number of amazing funds:
1. Intel
2. Axel Springer
3. Point-Nine Capital
4. BDMI
5. Accel Partners
6. DN Capital
7. Index Ventures
8. Hasso Plattner
There are a bunch more I'm familiar with. It has to do with matching your requirements and stage to their mandate.
Hit me up privately if you would like to discuss.
Related Questions
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Among platforms for startup funding, AngelList is the 800 pound gorilla. Does it make sense to use simultaneously other platforms like Gust, etc?
Short answer: Of course! Many angel groups require you to submit through Gust because it offers a consistency and makes reviewing applications easier. But not all use Gust same as not all use AngelList... I haven't met an angel who frowns upon using multiple platforms. I would encourage you to leverage your twitter and Facebook or Instagram to meet angels and get in their radar (don't hassle or stalk) just try to get exposed a bit to them by being part of the same meetup group, follow the same blog, membership... Subscribe to their own blog.. And when you submit funding request considerations do please send a follow up email or a call or basket of fruits if you have contact them before.HV
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What's the best visual format to display the size of the market when doing a pitch deck.
I like to take a rule from the Steve jobs playbook and use simple circles... one larger than the other but no more than 2. your most immediate target (realistic reachable) and one of the "enemy" competitor company. or overall untapped market cap. **for this to be effective you must provide as accurate projections as possible** no bar graphs and as little or no text as possible... remember that a deck is a companion to the speaker... avoid bullet points and use the deck to entertain rather than educate... is not a class is a pitch. :)HV
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VCs: What are some pitch deck pet peeves?
Avoid buzzwords: - every founder thinks their idea is disruptive/revolutionary - every founder says their financial projections are conservative Instead: - explain your validation & customer traction - explain the assumptions underlying your projections Avoid: - focusing extensively on the product/technology rather than on the business - misunderstanding the purpose of financial projections; they exist in a pitch deck to: a) validate the founders understanding of running a business b) provide a sense of magnitude of the opportunity versus the amount of capital requested c) confirm the go-to-market strategy (nothing undermines a pitch faster than financial projections disconnected from the declared go-to-market approach) d) generally discredit you as someone who understands how to build a company; for instance we'll capture 10% of our market, 1% of China, etc. Top down financial projections get big laughs from investors after you leave the room. bonus) don't show 90% profit margins. Ever. Even if you'll actually have them. Ever. Instead: - avoid false precision by rounding all projections to nearest thousands ($000) - include # units / # subscribers / # customers above revenue line; this goes hand-in-hand with building a bottom up revenue model and implicitly reveals assumptions. Investors will determine if you are realistic, conservative, or out of your mind based largely on the customer acquisition numbers and your explanation of how they will be achieved. - highlight your assumptions & milestones on first customers, cash flow break even, and other customer acquisition and expense metrics that are relevant Avoid: - thinking about investor money as your money - approaching the pitch from your mindset (I need money); investors have to be skeptics, so understand their perspective. - bad investors; it's tempting to think that any money is good money. You can't get an investor to leave once they are in without Herculean efforts and costs (and if you're asking for money, you can't afford it). If you're not on the same page with an investor on how to run/grow the business, you'll regret every waking hour. Instead: - it's their money; tell them how you are going to utilize their money to make them more money - you're a founder, a true believer. Your mantra should be "de-risk, de-risk, de-risk". Perception of risk is the #1 reason an investor says no. Many are legitimate, but often enough it's simply a perception that could have been addressed. - beyond the pitch, make the conversation 2-way. Ask questions of the investor (you might learn awesome things or uncover problems) and talk to at least two other founders they invested in more than 6 months ago.JP
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Looking for guidance for where I can find investors for my app?
As Ken suggested, there is a wide breadth of mobile offerings and although there are some great "mobile only" funds, each investor / fund has their own thesis that makes them interested in some but disinterested in others. Also, if your revenue generating, you should seriously consider bootstrapping further. Revenue is treated very strangely in early-stage investing and *might* work against you. AngelList is a great way to research investors but not effective in actually connecting with them. Find investors who you are confident will be passionate about what you're doing based on prior job experience or what you know they are investing in. Happy to talk in a call to help explain this further if you need more clarity.TW
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I have a great idea for a mobile app. If I can fund the prototype then how do I seek investors?
A prototype will not get you an investor, to be honest. This is just a fallacy. If you can fund the prototype, launch it in the market, get some traction from users. See if your mobile app resonates with your users. You need to track whether your app is able to retain those users so that they keep coming back to it. If you have a good amount of retention with the first few set of users (100 or 1,000), that's a good pitch to take to an investor. Investors are not looking at ideas, they're looking at businesses that can get, retain and engage a customer.RV
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