Just 7% of companies that raise a seed round will go onto raise Series A. If you’re planning to be part of that 7%, it’s never too early to start preparing. That was the message delivered by @JoinVenturePath in an online Lunch & Learn session we hosted recently. Over the course of an hour, he gave a high-speed overview of how VCs differ from angel investors and what early-stage founders need to know before pitching them. The first key lesson? If the seed stage is about quick pivots and trialing new ideas, Series A is about provable execution and repeatability. While it’s normal for an early-stage company to experiment, VCs at the Series A stage will be looking for solid evidence that you’ve worked out the kinks and all you need is a little jet fuel to take off. Ian walked us through the five stages of investor readiness, starting with building your data room and working backwards to create financial models, your business plan and pitch deck. The last and final stage – and the very first thing the investor sees – is the teaser you send before even sharing a deck. For those reaching out to investors, Ian also shared a four-point framework for evaluating whether a particular investor is worth your time. - Thesis alignment: if you’re building a biotech, there’s no point speaking to a VC with a focus on robotics or defence. - Portfolio conflict: if they just invested in your biggest competitor, they probably won’t look at another venture in the same area. - Target return portfolio: you should know what kind of return your company is capable of. If you’re looking to build a unicorn, don’t pitch the tax-efficient investors looking for a low risk 2-3x return. - Value add beyond money: whoever your investors are, you’ll be speaking to them month after month for the next several years. The best investors bring a lot more than money to the table, so choose carefully. When we opened the floor to questions, one of the first that came through was: what’s the most valuable relationship founders can build right now? The instant answer: “Your customers.” That’s the first thing investors look for. If they don’t see customers, they won’t look any further.