What is best practice when pitching for a late stage funding?

Bill Reichert / November, 2017

Description

Bill Reichert, Managing Director at Garage Technology Ventures explains some important things to think about when pitching for a late stage funding.

Video Transcript

What is best practice when pitching for a late stage funding?

You raised a couple of rounds of financing, you’ve built your company and now you’re scaling it up. You’re ready for late-stage investment. So what’s the difference between pitching late-stage and early-stage? Well, if you’re pitching late-stage, you need to make sure that you’re focused on the critical metrics that investors in the late stage care about for your particular type of business model, in your particular type of sector. Different business models track against different metrics, so if you are late stage means you have revenues and you are growing. Otherwise, by definition you’re not yet late-stage but if you’re selling into the consumer market, your metrics going to be different, than if you’re selling into the enterprise market.

So, for each company, for each business model you’ve got, depending on your sector, you need to have built a dashboard of the critical metrics that you’re measuring your performance against. What a late stage investors gonna want to see, is that you’ve had this discipline of having a metrics dashboard in place for several quarters. And what they’re going to want to see, is that you’ve been able to consistently hit your numbers. Now, nobody expects any entrepreneur to always hit their business plan. But they do expect the entrepreneur to be tracking against a specific set of growth rates or performance metrics as they go from early-stage into late-stage. So, if you’re an entrepreneur and you think you’re ready for raising late-stage capital, make sure you have that dashboard in place. Make sure you have a history of metrics that are relevant to your particular business model in your particular sector before you go out and you target that late stage investor.

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QUICK INFO

  • Bill Reichert, Garage Technology Ventures
  • November, 2017
  • 2:00
  • Funding

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