Raising Money

Definition

The process of convincing strangers to give you money based on PowerPoint slides and promises of future glory. It typically consumes 50% of a CEO's time and results in 30% dilution per round.

Example Usage

I've been raising money for the past three months, and I've pitched to 47 firms and gotten 2 term sheets.

Origin

Startup financing terminology

Fun Fact

Most fundraising decks are titled 'presentation' when they should be titled 'elaborate fantasy projection'

Source: Startup Finance Standards

Related Terms

Intermediate

multiple on invested capital

The total value returned to investors divided by the total amount invested, ignoring time. It's the simple, honest metric that tells you whether you made or lost money, period.

🚀 Startup / VC

Intermediate

LP (Limited Partner)

Institutions or individuals who invest capital into VC funds. The people whose retirement money is being gambled on whether your app will work.

🚀 Startup / VC

Beginner

go-to-market strategy

Your master plan for how you'll actually convince humans to exchange money for your product, typically involving buzzwords like 'omnichannel' and 'vertical integration.' It's the section of your pitch deck you update most frequently as each approach fails.

🚀 Startup / VC

Advanced

reps and warranties

Legal promises in investment agreements where founders swear everything they've said is true and the company isn't hiding skeletons. Breaking these can result in personal liability, making due diligence the most stressful time to discover that intern you hired in 2019 never signed an IP assignment.

🚀 Startup / VC

Advanced

party to the exit

A shareholder who has contractual rights to approve or block an acquisition or IPO, giving them veto power over exit decisions regardless of ownership percentage. Democracy in action, if democracy meant a small group could overrule the majority.

🚀 Startup / VC

Beginner

Deck (Pitch Deck)

A PowerPoint presentation that explains why your startup will either revolutionize the world or disappear within 18 months, with no middle ground. VCs will judge your entire company in 60 seconds based on your first three slides.

🚀 Startup / VC

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