Raising your first round of investment - Are you sure you are investible?

    Raising your first round of investment - Are you sure you are investible?

    T
    @techcelerate
    6 Followers
    6 months ago 516

    AIAI Summary

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    Key Insights

    Workshop 26
Raising your first round
Manoj Ranaweera
manoj.ranaweera@techcelerate.ventures | +44 7769734491
https://techcelerate.ventures
    1/5
    To be lucky - Always be prepared!
← Higher level of persuasion
Increasing level of validation and evidence → 
Idea
Can you charm?
Proven
Easier, but still no guarantee, as the 
ability to scale now becomes the 
challenge
Prove business potential: 
£10k MRR/£100k annual revenues
Prove scaling potential: 
£100k MRR/£1m revenues
    2/5
    Demystifying 
investment 
rounds
Idea
Idea validation
FFF
(Friends, Family and Fools)
Early traction
Turn idea into product and gain initial revenue traction
Pre-Seed
Minimum Viable Business
Used to be: £10k MRR/£100k annual revenues
In 2025: £100k MRR/£1m ARR 
Seed
Top up
Revenues aren’t coming fast enough to justify Series A
Seed Follow On/
Pre-Series A
Start of Scaling
Metrics works. Now need cash to trigger growth
2025: £2m ARR (used to be: £1m ARR)
Series A
Growth Capital
Not there yet for Series B but need cash to push through
Series A Follow On/
Pre-Series B
    3/5
    Are you building a £10m or £100m revenue business?
Idea
(FFF)
MVP & Early 
Traction
(Pre-Seed)
MVB
(Seed)
Product/Market Fit
(Series A)
Raise Bootstrap Bootstrap Bootstrap Yes
Bootstrap Bootstrap Yes Yes
Bootstrap Yes Yes Yes
Yes Yes Yes Yes
Founder(s) stake
(Dilute by 15 to 20% 
in each round of 
investment)
> 51% 
(could be lower if you 
continually raise)
    4/5
    Start to Founder Exit Journey
    5/5

    Raising your first round of investment - Are you sure you are investible?

    • 1. Workshop 26 Raising your first round Manoj Ranaweera manoj.ranaweera@techcelerate.ventures | +44 7769734491 https://techcelerate.ventures
    • 2. To be lucky - Always be prepared! ← Higher level of persuasion Increasing level of validation and evidence → Idea Can you charm? Proven Easier, but still no guarantee, as the ability to scale now becomes the challenge Prove business potential: £10k MRR/£100k annual revenues Prove scaling potential: £100k MRR/£1m revenues
    • 3. Demystifying investment rounds Idea Idea validation FFF (Friends, Family and Fools) Early traction Turn idea into product and gain initial revenue traction Pre-Seed Minimum Viable Business Used to be: £10k MRR/£100k annual revenues In 2025: £100k MRR/£1m ARR Seed Top up Revenues aren’t coming fast enough to justify Series A Seed Follow On/ Pre-Series A Start of Scaling Metrics works. Now need cash to trigger growth 2025: £2m ARR (used to be: £1m ARR) Series A Growth Capital Not there yet for Series B but need cash to push through Series A Follow On/ Pre-Series B
    • 4. Are you building a £10m or £100m revenue business? Idea (FFF) MVP & Early Traction (Pre-Seed) MVB (Seed) Product/Market Fit (Series A) Raise Bootstrap Bootstrap Bootstrap Yes Bootstrap Bootstrap Yes Yes Bootstrap Yes Yes Yes Yes Yes Yes Yes Founder(s) stake (Dilute by 15 to 20% in each round of investment) > 51% (could be lower if you continually raise)
    • 5. Start to Founder Exit Journey


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