A window into the VC process
Hello everyone,
Over the years I've spent across investing roles in VC and PE, I've realized something: the level of understanding founders have of the fundraising process varies drastically.
Some founders truly know what investors are looking for and have a thorough understanding of the VC thought process. This helps them navigate fundraising conversations with ease and grace. Others are quite new to the journey and are still learning the basics of fundraising. There's also a third category: those who understand everything technical about raising capital but still struggle to connect with and engage the audience.
While everyone has access to an infinite number of resources on raising capital effectively, the divide still exists. In my opinion, what's missing from most of these resources is the answer to "why?"
Why should the market size be big? Why does my product or business need a strong moat? Why do I have to think about what my business will do three years down the line? And so on...
Founders have a good understanding of these questions when they're thinking about their own business. However, when investors are asking the same questions, they're also thinking about "their" business – the business of investing capital and generating meaningful returns (both financial and impact) for theinvestors in their fund.
This is what I want to answer. I want to overlay the VC perspective over individual elements of the capital-raising journey, based on my experience. There will definitely be gaps, as I'm always learning and will continue to add fresh perspectives.
Welcome to The Venture Perspective.
