The Company was struggling to find a lead after meeting with numerous potential investors. Investors were reticent to fund the Company after it faced delays in product development and customer acquisition since closing its pre-seed round. The Company needed immediate capital to launch the next version of its product and additional capital for marketing and sales, but founders had concerns over potential dilution given the Company’s cap table.

Eric worked closely with the board and CEO to refine its fundraising strategy and investor pitch.

1. Fundraising strategy – Eric helped the Company deploy a two-tiered fundraising process that incentivized initial investors to close faster while affording other investors an opportunity to confirm the Company achieved certain milestones (reducing the dilutive hit to founders). He also supported the negotiation and drafting of term sheets, investment documents, and side letters.

2. Investor pitch – Eric also helped the Company restructure the way it told its story. By focusing on the customer journey and go-to-market strategy, the founders were able to better convey their expertise and product-market fit. Eric also helped the team identify and highlight metrics demonstrating the product’s stickiness rather than generalized market potential. He worked closely with the founders to update presentation materials and prepare for investor meetings. He also represented the company in pitches where the founders were unavailable.

Ultimately, the company closed an oversubscribed round at a valuation $5M higher than originally conceived. The capital infusion afforded the Company the runway it needed to focus on product development and customer acquisition while balancing the founders’ concerns over capital needs and dilution.