Avoiding Errors in Demo Day Fundraising

https://blog.aaronkharris.com/avoiding-errors-in-demo-day-fundraising

by jusduan • 3 years ago

62 5 3 years ago

blog.aaronkharris.com

akharris2• 3 years ago

Author here: Lost count of the various demo days coming up in the next few months. Happy to chime in on questions of how to deal with the run up to a demo day or the after effects.

daanlo2• 3 years ago

Thanks. Great post! How would you divide a seed and/or A round between angels and VCs? Is there a perfect mix in your opinion or something you would be opportunistic about, depending on who is interested?

akharris2• 3 years ago

There's no perfect mix.

In an ideal world, you'd build an order book of every investor that wants in and how much they want. Once you had that book filled, you'd allocate by weighing long term value, price, etc.

Realistically you can't do this (ok sometimes you can). The situation is dynamic and you generally want to take the bird in hand vs. risking the longer process. BUT there's a limit to that, and if you sequence things well - say start the longer processes first - then you have more flexibility.

But remember, the biggest point is that the seed round is just 1 moment in time. If you can't fit someone in but you like them, build the relationship for next time.

michaeltan07• 3 years ago

Good point that often gets lost: "This is true but also misses the point because seed funding isn’t the goal of a company - building a big company is the goal of a company."

Avoiding Errors in Demo Day Fundraising

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