The 'Raising VC' deck is not a startup pitch but a pedagogical tool designed to demystify the venture capital process for first-time founders. Dated December 11, 2012, the presentation leverages the brand and criteria of Flybridge Capital Partners to explain what investors look for, how the due diligence funnel operates, and the basic math of equity dilution. It emphasizes that raising money is a grueling process that can take 12 months to 2 years. While the aesthetic is dated, the core advice—focusing on a world-class team, a market larger than $500 million, and treating fundraising like a s…
Key takeaways
- Investors look for a very big market, defined as greater than $500 million on slide 6.
- The fundraising process is estimated to take between 12 months and 2 years according to slide 9.
- A world-class team is prioritized over the idea, which is described as 'a dime a dozen' on slide 7.
- The investor decision tree moves from a 3-minute email review to serious due diligence through a four-stage funnel shown on slide 12.
- Founders are advised to limit their personal introduction to less than 5 minutes and the team intro to 10 minutes on slide 13.
- VCs typically only pursue 2-3 high-priority new investment opportunities at any given time as noted on slide 15.
- Equity math is simplified using a £400k pre-money valuation plus £100k investment to reach a £500k post-money valuation on slide 20.
- The deck identifies 'Pied Piper' ability—the skill to recruit and retain a great team—as a key intangible asset on slide 6.
Introduction: A Time Capsule of Fundraising Education
The presentation titled 'Raising Your First Round of Capital,' authored by Iain McDougall and dated December 11, 2012, functions as a roadmap for founders entering the venture ecosystem. Unlike a traditional pitch deck for a specific product, this is a meta-deck—a guide on how to pitch. It utilizes the branding and criteria of Flybridge Capital Partners to provide a peek into the institutional investor's mindset during the early 2010s.
Slides 1-4: Setting the Context
Slide 1 introduces the presenter, Iain McDougall, and the date of the presentation. Slide 2 uses stock imagery of a garage and a laboratory to contrast 'Tech & Biotech,' the two primary pillars of venture investment. Slide 3 uses a parody of The Economist cover with the headline 'OH FUCK!' to signal the difficulty of the task at hand. Slide 4 establishes the agenda: distinguishing between Angels and VCs, finding investors, pitching, valuation math, and negotiating terms. The stated goal is to 'Demystify the VC Angel World.'
Slides 5-7: The Investor's Perspective
Slide 5 answers 'Why Raise VC,' citing deep pockets for follow-on rounds, the experience of investors who have 'seen the movie' before, value-add through industry contacts, and the ability to 'Swing Big' on transformative ideas rather than niches. Slide 6 is one of the most content-dense slides, listing 'Typical Investment Criteria' for Flybridge Capital Partners. Tangible criteria include a market size greater than $500m and high gross margin business models. Intangible criteria include 'interpersonal chemistry' and the 'Pied Piper' ability to recruit talent. Slide 7 reinforces the importance of people, stating that 'Ideas are a dime a dozen' while a world-class team is 'golden.' It features a chalkboard equation: 'Sweet Spot + compelling vision + wrong people = no funding.'
Slides 8-9: The Reality Check
Slide 8 features a high-stress image with the text 'Raising Money is Really, Really, Really Tough.' Slide 9 provides a sobering timeline, suggesting the process takes '12 months – 2 years..!' This timeline likely includes the pre-marketing phase and relationship building required to secure a lead investor.
Slides 10-13: The Mechanics of the First Meeting
Slide 10 introduces the section on 'Getting the 1st Meeting.' Slide 11 advises founders to 'Scope out the firm' and 'Arrange for a warm introduction,' noting that 'VCs Blink'—a reference to the speed at which they form initial impressions. Slide 12 provides a visual 'Investor's Decision Tree.' It shows the progression from a 3-minute email screen to a 30-minute phone call, a 60-90 minute in-person meeting, and finally a second meeting leading to 'Serious due diligence.' Slide 13 offers '3 Must Do's' for these meetings: being personable, being crisp (with a 5-minute personal intro and 10-minute team intro), and knowing the subject matter deeply.
Slides 14-16: Post-Meeting Strategy and Term Sheets
Slide 14 is a visual of a 'Maybe' checkbox, representing the common investor limbo. Slide 15, titled 'So You've Had a Good Meeting... Then What?', instructs founders to treat fundraising like a sales process. It notes that VCs are easily distracted and usually only focus on 2-3 high-priority deals at once. Slide 16 shows an empty boardroom, transitioning into 'Term Sheet Time.' Slide 17 lists frequently asked questions regarding option pools, valuation, and the choice between convertible notes and priced rounds.
Slides 18-22: Valuation Math and Conclusion
Slide 18 separates the term sheet into 'Economics' (Price) and 'Control' (Contract). Slide 19 and Slide 20 provide a basic math example using British Pounds. It shows that a £400k pre-money valuation plus a £100k investment equals a £500k post-money valuation. Slide 20 further explains that this results in the investor owning 20% of the business (£100k / £500k). Slide 21 uses a graphic for 'Money in the Bank' as the final step, and Slide 22 concludes with a 'Borat' meme asking, 'Who's Ready to Raise Money?'
What This Deck Does Well
The deck excels at managing founder expectations. By explicitly stating that raising money is 'Really, Really, Really Tough' and providing a 12-to-24-month timeline, it prepares entrepreneurs for a marathon rather than a sprint. The inclusion of the 'Investor's Decision Tree' on slide 12 is a highly effective way to visualize the funnel and explain why most founders receive a 'pass' at the early stages. Furthermore, the breakdown of tangible vs. intangible criteria on slide 6 gives founders a clear checklist of what to emphasize in their own pitches, specifically the 'Pied Piper' recruitment ability which is often overlooked in modern decks.
What Is Missing
Because this is an educational deck rather than a company pitch, it lacks specific data on any one business. However, as a guide, it omits several modern fundraising realities. There is no mention of 'SAFE' (Simple Agreement for Future Equity) notes, which were popularized by Y Combinator shortly after this deck was created. It also lacks detail on 'Control' terms beyond a single slide, missing opportunities to explain board seats, liquidation preferences, or protective provisions. The valuation math on slide 20 is helpful but does not account for the impact of the option pool on the pre-money valuation, a common point of confusion for first-time founders.
Founder's Teardown: Lessons to Copy
Quantify the Market: Follow the lead of slide 6 and ensure your deck explicitly targets a market size that justifies venture returns (at least $500m to $1b). · The 5/10 Rule: Adopt the timing constraints from slide 13. If you cannot introduce yourself in 5 minutes and your team in 10, you risk losing the investor's attention before you reach your product's value proposition. · Treat Fundraising as Sales: Slide 15's advice to 'build a pipeline' and 'build up to a crescendo' is the correct way to manage a round. Founders should run a tight process with multiple investors simultaneously to create the 'momentum' mentioned in the deck. · Address the 'Why Now?': Slide 6 highlights the 'unfair advantage' and 'why now?' as critical. Every pitch deck should have a dedicated slide answering why the market is ready for the solution at this specific moment. · Focus on the 'Champion': Slide 15 correctly identifies that you must first sell an individual partner (the 'champion') who then helps you sell the rest of the partnership. Your materials should be designed to help that champion pitch you internally.
Frequently asked questions
- What market size does this deck suggest is necessary for VC interest?
- Slide 6 explicitly states that investors like to see a 'Very big market' defined as being greater than $500 million. This reflects the 2012 venture landscape where a half-billion-dollar TAM was the baseline for institutional interest, though modern standards for 'transformative' ideas often push this figure into the billions.
- How long should a founder expect the fundraising process to take?
- According to slide 9, the timeline for raising money is '12 months – 2 years..!' This is a significantly more conservative estimate than the typical 3-6 month window often cited in modern startup hubs, suggesting the deck accounts for the time spent building relationships before the official 'ask'.
- What are the key tangible investment criteria mentioned?
- Slide 6 lists four tangible items: a market over $500m, an unfair advantage (the 'why you? why now?'), an attractive business model featuring recurring revenue and high gross margins, and a unique technology or business model approach.
- How does the deck suggest founders handle the first meeting?
- Slide 13 outlines '3 Must Do's': be gracious and personable, be crisp and on point, and know your stuff. It provides specific timing constraints, suggesting the personal intro should be under 5 minutes and the team intro under 10 minutes to demonstrate summarization skills.
- What is the 'Investor's Decision Tree' described in the deck?
- Slide 12 illustrates a funnel where investors first decide if a lead is worth 3 minutes (email/phone), then 30 minutes, then 60-90 minutes, and finally a second meeting. Each 'No' results in an outcome ranging from being ignored to a 'helpful' pass.
