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CFOs share advice on fundraising and a list of startup investors from Spendbase
Intro
Each year, the average venture capital firm sifts through over 1,000 proposals, and yours is among them.
How do you secure investment and set your venture to success with supportive and knowledgeable partners? There are so many factors to consider, some not immediately obvious.
In tense moments like these, wouldn’t it be good to get advice from CFOs who have successfully walked this path?
That’s why we asked CFOs to share insights that might help you raise venture startup capital with confidence
Meet the financial experts
Bradley Channer
CFO at UBIO
Bradley raised over $50m+ from VC, HNW, PE, Debt, and Grants for companies ranging from £0–£300m T/O with 1–1600 staff.
Jim Mackey
CFO at Revenue Grid
Jim has led coverage on the largest companies in tech and participated in two of the highest-profile IPOs in 2019.
Danilo Giacovazzi
CFO at Newton
Danilo has 15+ years of executive experience across technology, treasury, capital markets, and investment banking.
Francesco Zappalà
CFO at Impresa Pizzarotti & C. S.p.A.
Francesco won the CFO of The Year Finance Community Awards 2023.
Thierry Fortin
CFO at Akeneo
Thierry has 15+ years of finance and audit experience in the Big 4 company.
Gabriel Martinez Roa
Finance Partner to CSO at Zooplus
Gabriel has a demonstrated history of working within Private Equity, Strategy and Transactions.
Michael Kuntz
CFO at Pitch
Michael advises and mentors startups from pre-seed to beyond series B and acts as an angel investor.
Karol Matczak
CFO at SEDIVIO
Karol is an investor and entrepreneur, he holds CFA CIIA PRM certificates and is a CEO at Warsaw University of Technology Investment Factory.
Junada Sulillari
CFO at Yenna Tech
Junada is a mentor for sustainability startups, Catalyst 2030 member, and Startup accelerator judge.
What’s your advice on preparing a startup to raise venture capital?
Tap into storytelling
Be strong on the basis and even stronger on storytelling in your pitch deck.
Thierry Fortin
CFO at Akeneo
Track performance
Have clear KPI implementation for performance tracking and appropriate controlling tools.
Gabriel Martinez Roa
Finance Partner to CSO at Zooplus
Find alignment
Check what VCs invest in and what returns they look for. If VC investors want to exit in 3 years, do you want to sell your business in that time?
Bradley Channer
CFO at UBIO
Build for growth
Make sure you have a clear business model and a product with the potential to scale.
Junada Sulillari
CFO at Yenna Tech
Prepare early
Prepare a strategy and investor deck draft six months before seeking the next raise to socialize it with your Board and potential investors and revise it.
Jim Mackey
CFO at Revenue Grid
Numbers give confidence
Know your metrics and clearly articulate the core aspect of the business.
Danilo Giacovazzi
CFO at Newton
Decide on stakes
Be ambitious but don't be greedy: decide how much capital you need and the stake you are willing to give away.
Michael Kuntz
CFO at Pitch
Prove commitment
Raising money begins well before the actual round starts. Be close to your network, inspire, prove your commitment, and let investors see it.
Karol Matczak
CFO at SEDIVIO
Optimize operations
Improve financial processes and procedures, and strengthen reporting and IT systems.
Francesco Zappalà
CFO at Impresa Pizzarotti & C. S.p.A.
Tap into storytelling
Be strong on the basis and even stronger on storytelling in your pitch deck.
Thierry Fortin
CFO at Akeneo
Numbers give confidence
Know your metrics and clearly articulate the core aspect of the business.
Danilo Giacovazzi
CFO at Newton
Track performance
Have clear KPI implementation for performance tracking and appropriate controlling tools.
Gabriel Martinez Roa
Finance Partner to CSO at Zooplus
Decide on stakes
Be ambitious but don't be greedy: decide how much capital you need and the stake you are willing to give away.
Michael Kuntz
CFO at Pitch
Find alignment
Check what VCs invest in and what returns they look for. If VC investors want to exit in 3 years, do you want to sell your business in that time?
Bradley Channer
CFO at UBIO
Prove commitment
Raising money begins well before the actual round starts. Be close to your network, inspire, prove your commitment, and let investors see it.
Karol Matczak
CFO at SEDIVIO
Build for growth
Make sure you have a clear business model and a product with the potential to scale.
Junada Sulillari
CFO at Yenna Tech
Optimize operations
Improve financial processes and procedures, and strengthen reporting and IT systems.
Francesco Zappalà
CFO at Impresa Pizzarotti & C. S.p.A.
Prepare early
Prepare a strategy and investor deck draft six months before seeking the next raise to socialize it with your Board and potential investors and revise it.
Jim Mackey
CFO at Revenue Grid
Alternative financing for venture startups—what are the options?
Clients as investors
Commercial financing is often overlooked. Yet, you can get a future client whose problem you solve to invest in your company. Not only can you have a high valuation (as they only care about your tech), but you have proven a strong market fit to other investors for future rounds. And you have already found your future exit partner before you have even started! I highly recommend this.
Bradley Channer
CFO at UBIO
How do you select the best investors?
Categorize potential investors
To me fundraising is like a classical sales process, where you build and nurture your funnel over multiple months, categorize investors into A, B, and C tiers, and start with C to test your equity story but keep the rest tight enough in the process to be able to move quickly. In the end, do not just go for the deepest pockets or the highest valuation but the investor that you believe can provide the best strategic value long-term.
Michael Kuntz
CFO at Pitch
Easy way is rarely the best one
Often the most promising investors are the most difficult and the most difficult investors are the most valuable. Don’t go the easy way. Look at what investors put pressure on you and at the same time motivate and support you. So that you feel that you are giving 200% and even if you fail, you can’t do more.
Karol Matczak
CFO at SEDIVIO
What are your recommendations on negotiation strategies?
Spare your equity
Don’t give away too much equity in the beginning. Always remember there will be several rounds of investment to get your business to exit.
Bradley Channer
CFO at UBIO
Don’t look desperate
Leave enough room for negotiation in your initial demands, you will typically be negotiated downwards. Build up a proper pipeline and create a competitive momentum where investors understand that you have no dependency on taking their offer.
Michael Kuntz
CFO at Pitch
Practice self care
Take care of your physical and mental condition. Avoid lack of sleep, alcohol, and coffee so that you have tremendous energy. This will make the fundraising process and negotiations easier.
Karol Matczak
CFO at SEDIVIO
Terms and conditions
Ensure commitment via term sheets because nothing is confirmed until in hand. Compare all the T&Cs as small differences between funds can help negotiations.
Danilo Giacovazzi
CFO at Newton
Know your weaknesses
Accentuate your positives. Make sure you have a remediation plan for your weaknesses. It’s best to be honest about them. No sense in hiding your weaknesses—investors are savvy and they will find them.
Jim Mackey
CFO at Revenue Grid
Withstand pressure
Some investors may be aggressive and can ask for a significant portion of the equity of a start-up and may be willing to invest only a few thousand (or tens of thousands) dollars for that. Don’t let the pressure of raising funds push you to make the wrong decisions.
Junada Sulillari
CFO at Yenna Tech
Spare your equity
Don’t give away too much equity in the beginning. Always remember there will be several rounds of investment to get your business to exit.
Bradley Channer
CFO at UBIO
Terms and conditions
Ensure commitment via term sheets because nothing is confirmed until in hand. Compare all the T&Cs as small differences between funds can help negotiations.
Danilo Giacovazzi
CFO at Newton
Don’t look desperate
Leave enough room for negotiation in your initial demands, you will typically be negotiated downwards. Build up a proper pipeline and create a competitive momentum where investors understand that you have no dependency on taking their offer.
Michael Kuntz
CFO at Pitch
Know your weaknesses
Accentuate your positives. Make sure you have a remediation plan for your weaknesses. It’s best to be honest about them. No sense in hiding your weaknesses—investors are savvy and they will find them.
Jim Mackey
CFO at Revenue Grid
Practice self care
Take care of your physical and mental condition. Avoid lack of sleep, alcohol, and coffee so that you have tremendous energy. This will make the fundraising process and negotiations easier.
Karol Matczak
CFO at SEDIVIO
Withstand pressure
Some investors may be aggressive and can ask for a significant portion of the equity of a start-up and may be willing to invest only a few thousand (or tens of thousands) dollars for that. Don’t let the pressure of raising funds push you to make the wrong decisions.
Junada Sulillari
CFO at Yenna Tech
What are the common mistakes when raising capital?
15 deadly mistakes to avoid:
- 01 Overvaluation for the stage
- 02 Giving away too much equity
- 03 Lying to investors
- 04 Not having long-term partners
- 05 Overlooking future governance
- 06 Raising funding too late
- 07 No in-depth due diligence
- 08 No understanding of competition
- 09 Being too easy or hard in negotiations
- 10 Bad terms for founders’ vesting
- 11 Weak anti-dilution protection
- 12 Bad liquidation preferences
- 13 Ignoring investors’ feedback
- 14 Not having a clear business model
- 15 Lack of confidence when pitching
High valuation brings high responsibility
Remember, if you get money at a high valuation, you have to pull through! That means you need to get the sales in and you need to scale quickly. If you fail for whatever reason, re-raising investment is very hard. You will struggle to hit that same valuation and you will be punished in a down round and this is ten times worse.
Bradley Channer
CFO at UBIO
Gift
It's your choice, not theirs
The best what you can do to prepare for raising funds is to know all your options early on. This is how you avoid being caught in a tight corner when it’s time to make the final decision.
Andrew Alex
Co-founder at Spendbase
Get contacts of all investors and VCs in one file and start building your fundraising funnel immediately
- 2000+ investors and VCs
- Average check sizes
- Industries and locations
- Relevant contact details
