A few takeaways from a conversation with VCs in seedstage. #BeautyTech
BEAUTY MATTER. Seed stage capital and fundings. For more content follow KellyKovack and BeautyMatter.
A conversation with Odile Roujol Fab Ventures and Lizzie Francis M13 Partner, moderated by Kelly Kovack.
Do you due diligence. It’s not only to find the right fit, but to build relationships in the long run.
Before connecting with any VC, you need to be aware of their focus, stage, check size. You can find information on crunchable, angel list, signal.
You can look also at their site, look at their portfolio, partners and principal and associates.
You need to keep a curated list. An investor is here in the long run. If they invest, you will meet them every month, and have them in your board in the years to come. It’s a long term partnership, 7 to 10 years, pretty much like a partner in life, you need to make sure you share the same vision and values. And have the same way to look at growing your business and company once you have shared your ambition.
As you are a purpose-driven founder, they have as Venture Capitalist a thesis of investment.
For instance, for Fab Ventures, it’s to be about conscious beauty and fashion. We love to address underserved needs. We are backing purpose and data-driven founders building communities, platforms, and then products and services. Our footprint is US only.
Be part of the local ecosystem, join the conversation.
Make sure you understand your local ecosystem and your part of events, webinars, to meet other leaders, founders and investors.
Too many founders ask introductions for the top Tier VCS without being ready for it in their deck or metrics.
Having iconic BAs and Pre-seed seed VCs known locally can help convince global Ventures, and enable you to grow as a leader.
I accept cold emails if short and having the right fit with my thesis of investment. Most VCs don’t and best introductions come from other founders.
Ask them for advice not investments.
Surround yourself with experts and super powers, if not in your team, as advisors.
Take care of your advisory council. It’s a good way to convince VCs you have already the ability to convince people that have an expertise even before raising money.
One of them maybe one day the independent board member you will need in addition to your investors (pretty much focusing on financial metrics), to help you keep the vision and talk about the strategy. Independent board members help in the dynamic of your board, in good but also bad days.
Keep in touch.
Keep in touch regularly. Even your potential investors like when you share your milestones. And ask for help. They may have a few ideas of introductions if you ask precise questions.
Put them on your monthly email if you liked the interaction.
And maybe in 6 months, ask another chat, before needing to raise the next round.
Take notes of their insights in the first conversation, to be able to continue to nurture it and show you are assertive but also a good listener.
Once again, ask for advice, not investments. It’s the best way to build a trust relationship.
Remember, you are in this for the long run.
Don’t be too picky on the Term Sheet and valuation in Seed stage. Just add skills to your cap table. And make sure you’ve got a group of investors you are happy to meet, able to help you to prepare for the next milestones.
Thesis: Direct-to-consumer, sustainable & inclusive
Criteria: purpose and data-driven founders
Location: Bay Area/ LA investing in the US
Check Size: $50k to 450k. average $250k