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OCV Public Handbook/💰Fundraising

Fundraising

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Investor Meetings
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How to Interact with VCs
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Pitch Deck Reference
Pitch Strategy
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Term Sheets
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Legal Compliance - Post Round Close
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Valuation Methods
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Dilution
 
This section is designed for OCV companies to navigate through their Seed fundraising process. Each fundraising cycle is unique and specific to the industry in which the company operates in. In general, founders can expect a 3-6 month fundraising process and the possibility of 100+ VC meetings. We aim to reduce the duration and complexity of Seed fundraising through OCV’s Trusted VCs network.
Typical steps involved in an early stage fundraising process:
  1. Business Plan and Pitch Deck Founders create a detailed business plan outlining their value proposition, target market, competition, revenue model, marketing strategy, and financial projections. A pitch deck, a condensed presentation of the business plan, is also prepared for investor meetings.
  1. Building a Prototype or MVP / Demonstrating Revenue Traction Having a minimum viable product (MVP) or prototype helps demonstrate the concept's feasibility and potential to investors, making the pitch more compelling.
  1. Identifying Potential Investors OCV will introduce CEOs to our Trusted VCs network as an initial step. Founders should also research and compile a list of potential investors who have shown interest in their industry or type of startup.
  1. Initial Outreach to OCV’s Trusted VC Network Founders reach out to potential investors via email, sharing their pitch deck and expressing their interest in securing seed funding. We recommend using DocSend or other tracking mechanisms to stay organized of investor conversations.
  1. Pitch Meetings Successful initial outreach leads to pitch meetings with potential investors. During these meetings, founders present their business idea, value proposition, market opportunity, and the plan for utilizing the seed investment. See additional details at
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    Investor Meetings
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  1. Due Diligence Investors conduct due diligence, which involves researching the market, evaluating the team's capabilities, analyzing the business plan, and assessing the potential risks and returns associated with the investment.
  1. Term Sheet Negotiation If investors are interested after due diligence, they present a term sheet outlining the investment terms, such as the amount of investment, equity stake, valuation, and any additional conditions.
  1. Legal and Documentation Upon agreeing to the terms outlined in the term sheet, legal documents like the investment agreement and shareholders' agreement are prepared and reviewed by both parties. Company’s Legal Team will review and redline deal documents.
  1. Closing the Deal Once all legal and financial details are settled, the investment is finalized, and funds are transferred to the startup's bank account. Also see
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    Legal Compliance - Post Round Close
    .
  1. Post-Funding Activities After receiving the investment, founders use the capital to develop the product, build the team, execute the marketing strategy, and achieve key milestones. Regular communication with investors is important to provide updates on progress.
  1. Follow-Up Rounds As the startup progresses and achieves milestones, it may seek additional funding rounds like Series A, B, and so on, depending on its growth trajectory.
Remember that the Seed fundraising process can vary depending on factors like the industry, location, and the startup's stage of development. It's crucial for founders to be well-prepared, articulate, and persistent throughout the process to maximize their chances of securing seed funding.