What is the recommended cash runway for a new startup according to this deck?

According to slide 5, the fundraising rule of thumb is to secure 12-18 months of cash. This should be calculated using a basic financial model of cost drivers and revenue, with a monthly forecast extending for at least two years to ensure the founder has a clear understanding of their burn rate and capital requirements.

How does the deck suggest founders should approach potential investors initially?

Slide 8 explicitly advises founders: 'Don't ask for money!' Instead, it suggests using phrases like 'I'm not ready to raise,' 'Who would be helpful?', and 'Who else should I talk to?' This approach focuses on building relationships, gathering intelligence, and expanding the founder's network before formally opening a round.

What are the 'Final Deal Points' a founder needs to be aware of during a close?

Slide 11 lists several critical legal and structural terms: board composition, option pool size, voting rights, founder vesting schedules, change of control provisions, redemption rights, information rights, and anti-dilution clauses. The slide emphasizes that a deal is 'not done until money is in the bank.'

What data is provided regarding the cost of employee turnover?

Slide 14 cites that replacing an employee costs between 90% and 200% of their annual salary. It also notes that 44% of Millennials intend to quit their jobs within two years and 3 million Americans leave their jobs voluntarily each month, underscoring the market need for retention-focused startups like Gradifi.

What stages of venture capital are identified in the startup lifecycle?

Slide 4 identifies four primary stages of capital: Friends & Family, Angel, Early Stage, and Growth Equity. The deck uses a rocket launch metaphor to illustrate the progression from initial support to large-scale expansion capital.

HBS Field Y Pitch Deck Teardown: A Masterclass

The HBS Field Y 'Fundraising 101' deck, authored by David Chang, serves as a tactical manual rather than a traditional startup pitch. Spanning 61 slides (with 21 key slides analyzed here), it outlines the mechanics of securing early-stage capital. The deck emphasizes the importance of financial modeling, suggesting a rule of thumb for raising 12-18 months of cash based on a 2-year monthly forecast. It introduces a 'Target Criteria' framework for investor selection and advocates for a 'Don't Ask for Money' approach to initial networking. The presentation also details the psychological aspects…

Key takeaways

Founders should aim to raise 12-18 months of cash based on a monthly forecast for two years (Slide 5).
Investor targeting should be filtered by stage, location, industry vertical, business model, investment thesis, and social trust (Slide 7).
Initial investor interactions should focus on advice and networking rather than direct solicitation (Slide 8).
Urgency in a round is best created by securing an anchor investor to act as the 'first domino' (Slide 9).
Closing a deal requires managing specific legal terms including board composition, option pools, and voting rights (Slide 11).
Employee turnover costs can range from 90% to 200% of an annual salary, highlighting the importance of retention tools (Slide 14).
Successful founders must expand their skills across engineering, product management, marketing, and business development (Slide 15).
The deck recommends using structured templates like those from NextView Ventures to tell a seed-stage story (Slide 20).

Introduction and Speaker Background

Slides 1-2: The Foundation

The presentation opens with Slide 1 , titled 'Fundraising 101: How to Pitch and Land Your First Investors.' The author, David Chang (@CHANGDS), positions this as a guide for financing both the startup and the founder. Slide 2 establishes credibility through 'Startup Experiences,' displaying logos of prominent companies including TripAdvisor, edocs, Siebel, IAC, m-Qube, VeriSign, snapmylife, snap one, Where, and PayPal . This slide serves as the 'Team' equivalent for the presenter, signaling deep operational and exit experience in the Boston and global tech ecosystems.

Slide 3: Identifying Obstacles

Slide 3 is a transitional visual featuring a brick wall with the text 'What obstacles stand in your way?' This slide is designed to prompt audience engagement, forcing founders to internalize the specific hurdles—whether technical, financial, or market-based—that prevent them from scaling.

The Mechanics of Venture Capital

Slide 4: Capital Stages

Slide 4 provides a hierarchy of 'Venture Capital Stages.' It lists four distinct tiers: Friends & Family, Angel, Early Stage, and Growth Equity . The visual uses a Saturn V rocket metaphor, suggesting that each stage provides the necessary thrust to reach the next level of orbit. This helps founders categorize which type of investor is appropriate for their current level of maturity.

Slide 5: Determining the Raise Amount

Slide 5 offers tactical advice on 'How Much to Raise.' It dictates three core requirements: a basic financial model of cost drivers and revenue, a monthly forecast for 2 years, and a 'rule of thumb' to raise 12-18 months' cash . This is a critical slide for founders who often struggle with over- or under-raising, providing a concrete timeframe to reach the next milestone.

Slide 6: Agenda Overview

Slide 6 breaks the presentation into four quadrants: Fundraising Basics, How to Raise a Round, Student Entrepreneurs, and Tips . This structure indicates that the deck is intended for an academic or early-career audience, specifically tailored to the HBS Field Y program.

Strategy and Execution

Slide 7: Target Criteria

Slide 7 uses a target visual to outline how founders should filter potential investors. The six criteria are: Stage, Location, Industry Vertical, Business Model, Investment Thesis, and Social / Trust Filter . This encourages a disciplined approach to lead generation, preventing founders from wasting time on investors whose mandates do not align with the startup's profile.

Slide 8: The Soft Sell

Slide 8 contains the counter-intuitive advice: 'Don't Ask for Money!' It suggests using the pre-marketing phase to ask for advice and referrals. Recommended scripts include 'I'm not ready to raise' and 'Who would be helpful?' This strategy is intended to lower investor defenses and build a relationship before the formal pitch begins.

Slide 9: Creating Urgency

Slide 9 addresses the psychological component of fundraising. It notes that an anchor investor acts as the first domino . It also mentions 'triggering events' as a means to secure a term sheet or improve existing terms. This highlights that fundraising is often a momentum game where the first check is the hardest to secure.

Closing and Legal Considerations

Slides 10-11: Finalizing the Deal

Slide 10 is a visual transition for 'Closing the Deal.' Slide 11 lists the 'Final Deal Points' that founders must navigate. These include Rolling close vs. set close and a checklist of key terms: Board composition, Option pool, Voting rights, Founder vesting, Change of control, Redemption rights, Information rights, and Anti-dilution . The slide concludes with the sobering reminder: 'Not done until money is in the bank.'

Slide 12: Transition to Student Entrepreneurship

Slide 12 shifts the focus specifically to the 'Student Entrepreneurs' section of the agenda, highlighting the unique challenges and resources available to those founding companies while in university.

Case Study: Gradifi

Slides 13-14: Market Problem and Solution

Slide 13 showcases a product feature for Gradifi (a student loan repayment platform). It details 'Counseling and Resources' provided by American Student Assistance (ASA), including loan repayment, planning, and consolidation. Slide 14 provides the 'Why' through 'Job Hopping' statistics: 44% of Millennials intend to quit within two years, and replacing an employee costs 90%-200% of their annual salary. These metrics justify the business case for Gradifi’s retention-focused product.

Founder Development and Pitching

Slides 15-16: Skills and Performance

Slide 15 , 'Expand Your Skills,' encourages founders to be polymaths, covering Engineer, Product Management, Marketing, Business Development, Corporate Development, and Investor roles. Slide 16 uses the 'Pitch Perfect' movie poster to emphasize that pitching is a performance that requires rehearsal and harmony among the founding team.

Slides 17-19: Pitching Scenarios and Vision

Slide 17 presents a role-playing scenario ('Scenario 2: Grocery Store') where the audience is told to act as a distracted investor who 'ripped your pants 5 minutes ago' and wants to end the conversation. This prepares founders for high-friction, real-world pitching environments. Slide 18 , 'Share Your Summit & Basecamp,' uses a mountain metaphor to tell founders to communicate both the long-term vision (Summit) and the immediate milestones (Basecamp). Slide 19 shows the Pexels website, likely suggesting a resource for high-quality, free stock imagery to improve deck aesthetics.

Slides 20-21: Resources and Conclusion

Slide 20 points to NextView Ventures templates, specifically 'Template 1: Pitch + Kitchen Sink FAQs' and 'The Show.' It provides a URL for founders to download these resources. Slide 21 concludes the presentation with a 'Q&A' slide, mirroring the title slide's branding and contact information.

What Works and What is Missing

What Works: The deck is exceptionally strong on process and tactics . By defining the specific 'Final Deal Points' (Slide 11) and 'Target Criteria' (Slide 7), it demystifies the administrative and strategic hurdles of fundraising. The inclusion of the Gradifi data (Slide 14) provides a concrete example of how to use macro-trends to justify a product's existence. The 'Summit & Basecamp' metaphor (Slide 18) is an effective way to teach founders how to balance vision with execution.

What is Missing: As this is a 'Fundraising 101' educational deck rather than a specific company pitch, it lacks unit economics, a specific cap table, or a competitive landscape for a single entity. While it mentions Gradifi, it does not provide a full teardown of Gradifi's specific financials or traction. There is no mention of valuation ranges for the different stages described on Slide 4, which is often the most sought-after information for first-time founders.

Founder Takeaways

Founders should emulate the structured filtering shown on Slide 7. Most early-stage founders take a 'spray and pray' approach to investors; this deck argues for a thesis-driven approach. Additionally, the 'Don't Ask for Money' tactic on Slide 8 is a sophisticated networking move that can help founders build a 'shadow' pipeline of interest months before they actually need to close a round. Finally, the emphasis on 12-18 months of runway (Slide 5) remains the gold standard for seed-stage planning, ensuring the company has enough time to iterate before the next capital infusion is required.

Frequently asked questions

What is the recommended cash runway for a new startup according to this deck?: According to slide 5, the fundraising rule of thumb is to secure 12-18 months of cash. This should be calculated using a basic financial model of cost drivers and revenue, with a monthly forecast extending for at least two years to ensure the founder has a clear understanding of their burn rate and capital requirements.
How does the deck suggest founders should approach potential investors initially?: Slide 8 explicitly advises founders: 'Don't ask for money!' Instead, it suggests using phrases like 'I'm not ready to raise,' 'Who would be helpful?', and 'Who else should I talk to?' This approach focuses on building relationships, gathering intelligence, and expanding the founder's network before formally opening a round.
What are the 'Final Deal Points' a founder needs to be aware of during a close?: Slide 11 lists several critical legal and structural terms: board composition, option pool size, voting rights, founder vesting schedules, change of control provisions, redemption rights, information rights, and anti-dilution clauses. The slide emphasizes that a deal is 'not done until money is in the bank.'
What data is provided regarding the cost of employee turnover?: Slide 14 cites that replacing an employee costs between 90% and 200% of their annual salary. It also notes that 44% of Millennials intend to quit their jobs within two years and 3 million Americans leave their jobs voluntarily each month, underscoring the market need for retention-focused startups like Gradifi.
What stages of venture capital are identified in the startup lifecycle?: Slide 4 identifies four primary stages of capital: Friends & Family, Angel, Early Stage, and Growth Equity. The deck uses a rocket launch metaphor to illustrate the progression from initial support to large-scale expansion capital.