The Ultimate Guide to Raising Venture Capital: Startup Funding Process Step by Step

Venture capital is how Facebook, Google, Amazon and most category defining technology companies got off the ground as startups. But raising money as an entrepreneur can seem like an intimidating, opaque, and unfair process. I explain the process of raising venture capital from the inside as a Silicon Valley VC investor.

0:00 Intro
1:19 When should you Raise Venture Capital?
4:09 Creating your Pitch Deck
5:57 Finding and Meeting Investors
7:51 Running your Fundraising Process with Investors
10:24 Negotiating your Term Sheet / Deal
11:18 Picking an Investor / Closing

Process for raising venture capital funding includes:
1.Create a pitch deck. Templates:

2.Make a target list of venture investors and get intros. Research tools:

3.Manage your fundraising process. Template:

4.Negotiating a deal - stay tuned for another video on this topic!

5.Picking an investor - stay tuned for another video on this topic!

See my video on how to pitch in much more detail, along with an example pitch from YouTube's first fundraising deck:

[nogatekeepers]

Another common question I get is how much to raise. As a general principle, you want to raise the least amount you need to execute on the next 18-24 months of your roadmap vs asking for the most you think you can get. It's always easier to get more VCs to the table with a smaller amount, and then grow the round size from there with plenty of demand, vs have to scale back the round size (which comes across as a sign of weakness). What other fundraising tips or questions do you have?

[tims]

Another must watch - and great intro, I didn't know that!

[joshuahaas]

Love it! Will definitely forward to people who ask me for fundraising advice...

[ernestomaestas]

How do you keep your hair so silky smooth? 😉😝

Beautifully explained!

[meetthereqs]

the most helpful resource I've found in my fundraising journey, thank you! I'll post back here when we finish raising. Im in the 8th meeting to date.

[WoodyLightyearx]

Ok I'm only halfway through the video but I'm wonderfully impressed. I stumbled on this while looking for some peculiar insights into the difference between pre-seed and seed funding rounds. Lemme watch till the end. Might drop another comment. But I love your aura. It's giving happy.

[lyazidbenyahya]

Hello Wayne, i'm glad that i found you here ! Very clear and concise content your animations are stunning ! I will be at the silicon valley begining of June (we are a startup from Luxembourg) and we definetly will keep in mind and notes a big chunk of what you teach us ! Keep up the great content !

[melscholar]

Thanks Wayne, very useful and clearly explained.😊

[unknownuser]

can you make a video explaining on what limited partners(the people who fund vc's) look for in an entrepreneur starting a vc firm also explaining what documents and paperwork to show to the limited partners and how to convince them to fund your vc firm

[tenbagger]

Hey Wayne, do you edit the videos yourself? It's really top notch for a new channel - would love to know what software and editing suite you use

[basantiland]

Hi Wayne, I would love to get your take on raising funding using an IDO / ICO process through a lauchpad like Polkastarter or ByBit. More importantly, how it differs / competes / complements with VC funding. I notice many web3 companies / protocols tend to use both, others just token offerings. As a pre-seed / seed stage startup, am not sure which way to go.

[iskandera]

Amazing work. Are you ever in London or have presence here?

[ralphaelxavierrobinson]

How should early founders pay themselves after raising funding?
And how do they get paid as the company grows?

[chiefo_azubike]

Hi Wayne, please allow us download your videos for offline listening, repetition is how we learn.

[mcdoopy]

Where are those funding probability numbers coming from @8:15?

[chuck]

Wayne, I am interested in raising VC but not sure where to start. Can you reach out to me for some guidance. Thanks!

[albertrandtock]

How to raise fund for start up with no personal capital raise ?