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Hi John,

This week's newsletter features our insights from an investor about how founders can raise money without having introductions to investors. Also, we share the latest updates on the startup fundraising market, curated knowledge about building your company or firm, plus a secure way to secure signable agreements with DocSend.

How to raise funds without intros

In part two of this Perfect Pitch series, Stéphane Nassar from OpenVC explains how you can raise funds without introductions.

Stéphane Nassar from OpenVC explains what kinds of signals get investors excited (and which ones don’t!), along with how to build targeted investor lists using four key dimensions.

Here's the full post, if you want do dive in. Otherwise:

Key takeaways:

• Signal are words or phrases that get investors excited, such as “exited founder” and specific growth metrics
• Before beginning outreach, a free tool like OpenVC can help you build a highly targeted investor list
• Define your investors by four dimensions: vertical, geography, stage, and check size

What is a signal?

Signal is a few words that will get an investor excited. It doesn’t have to be fair, it doesn’t have to make much sense, it’s just how people are wired. Investors, especially, they’re wired that way. And so if I go to an investor, I send him a very short cold email, don’t say much about the project, but I mention that I’m an exited founder and the previous company that I built was acquired for nine figures, he’s going to take the call. I’m not saying he’s going to invest, but he’s going to take the call for sure.

And so there are a few signals like that. I tried to make a list. Obviously, it’s not perfect, and depending on your geography, your stage, and the type of investor you have in front of you, it’s going to be different. But I would say it’s directionally correct.

So, on the left, you have the strong signal: Exited founder as we mentioned it. If you already have term sheets from Fund X, that’s great because investors love following other investors. If you have significant growth, 20%+ month-over-month revenue growth— fantastic. If you have contracts, like a deployed product contract with Big Name Company, that’s good. For a pharma company, if you’re past phase one, that’s, of course, excellent. And then another signal—YC-backed—we can discuss that but for some people, it still means a lot.

On the right, you have stuff that is not signal. And, really, look at that because there is some confusion sometimes I see when speaking with founders. Having a motivated team is great, right, but that’s table stakes—your team should be motivated. If you say that and you don’t have anything else to say, then I will assume you don’t have much going on for you. Having talks with funds or clients, again, it’s just talks. Everybody talks, doesn’t mean much. It’s not substantial enough to be mentioned and to count as a signal.

What signal is not...

So, now for the next one, I may get some flack but I would consider mockups, MVPs, and waitlists as not signal. They used to be, but not anymore.

Here'e the full blog post with my thoughts on raising capital without intros.

Pitch Deck Interest Metrics Update

Activity in the startup fundraising marketplace slowed markedly last week, as tends to be the case in the run-up to Thanksgiving. VC activity dropped by 11.06%, founder activity went fell by 25.51%, and VC time spent had a 0% change.

Here's the full analysis of last week's activity.

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