Churn rate basics, BNPL fraud, fundraising IP checklist – TechCrunch
The venture capital market is slowing down, which means early-stage founders are chasing a smaller pool of money.
According to Carta, the number of seed deals funded between Q4 2021 and Q1 2022 fell 41%, and dollar volume followed suit, dropping from $2.62 billion to $1.81 billion, a 31% decline.
In this environment, teams that successfully close a fundraising round will find themselves with a shorter runway than they planned on, which means partnering with an investor who understands the business well enough to add value is more critical than it was a year ago.
Because a founder’s pitch is the first step on that journey, we’re interviewing active investors to learn more about what they’re looking for and how they prefer to be approached.
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For our latest outing, we asked each of them to name a pro forma pitch practice they think founders should retire. Notably, angel investor Marjorie Radlo-Zandi said entrepreneurs who embellish the size of their market are sabotaging themselves.
“Don’t be tempted to overstate your market size and its infinite potential,” she said. “We call blatantly inflated numbers ‘handwaving.’ If you exaggerate, you’ll appear less credible to investors. Not all investors expect to invest in the next unicorn.”
Thanks very much to everyone who participated:
- Christine Tsai, CEO and founding…