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;
1 pdf presentation with 27 slides