Startup Studio Fundraising Fundamentals

Startup studios, venture builders are highly efficient in creating many ventures in parallel, with a higher success rate than with any other startup building approach. The fundraising process is more challenging compared to raising capital for a single startup. You have to show to your investors:

+ Leadership that can build an entire portfolio of companies;

+ Financial-organizational structure that matches your goals;

+ A timely and coherent vision and investment thesis;

+ Viability of your approach;

+ Strong portfolio of startups.

You need to make sure to have a solid strategy and prepare to answer the tough questions including:

• Do you want to raise the capital into your studio or establish a separate fund? Why this way?
• Will the studio act as the GP or who will? Will this be an official fund or a holding company?
• How to cover the studios operational costs? For a management fee and carry or charge the startups? Or do you have another solution?
• How will you manage conflicts of interest between the Studio the Fund and the Startups?
• How will you ensure successful exits of your portfolio and thus ensuring a high fund ROI?
• If you are converting your agency into a studio: How to value your current assets? How will you restructure your organization to fit the new strategy?
• Are you raising a fixed-life fund or evergreen fund? How will you handle raising new capital when needed?
• How will your studio preserve it's equity part in the startups and solve the "dead equity" concern?
• Will you create ventures from internal process or join existing teams? What is your financial modeling backing up your approach?
• ...

This presentation will help you understand the basics of how to build up your fundraising approach.

If you need more help, reach out and I will guide you in:

+ Structuring your venture builder and fundraising strategy;

+ Assess your current material and identify gaps and risks;

+ Preparing for a successful investor meeting;

Attila Szigeti

https://www.attilaszigeti.com/