![\"noahlichtenstein\"](\"http:\/\/foundersnetwork.com\/wp-content\/uploads\/2014\/12\/noahlichtenstein-1024x454.jpg\")
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Looking to raise a seed round?<\/p>\n
Noah Lichtenstein\u00a0(@Noah_L<\/a>), partner at Cowboy Ventures<\/a>, sat down with our members for an\u00a0fnMentoring<\/a> session on raising a seed round. Some of Cowboy’s investments include Area 1 Security, Product Hunt, and more<\/a>. \u00a0During the session, Noah gave a background on Cowboy Ventures’ focus on “Life 2.0”–companies re-imagining work and personal lives, and spoke to what they are looking for in potential investments. He also led a Q&A with the founders in attendance\u00a0focused on what you\u00a0should ask yourself when you’re looking to raise a seed round:<\/p>\n Are you beyond\u00a0the idea stage?<\/strong> Does your data show how you think?<\/strong> If you’re not monetizing now, when?<\/strong> Don’t just stay heads down building, set aside time to set some goals and look at what key metrics you should be capturing.<\/strong> If you can’t get a warm intro, what does that say about your hustle?<\/strong> <\/p>\n A big thanks to Noah\u00a0for his time and mentorship! If you are a member, you\u00a0can listen to the full fnMentoring recording\u00a0here<\/a>.<\/p>\n To access FN\u2019s many benefits, including an invitation to our next\u00a0fnMentoring<\/a>\u00a0session,\u00a0\u00a0learn about our approval process<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Looking to raise a seed round? Noah Lichtenstein\u00a0(@Noah_L), partner at Cowboy Ventures, sat down with our members for an\u00a0fnMentoring session on raising a seed round. Some of Cowboy’s investments include … <\/p>\n
\nSeed investors are not usually the first round of funding–they’re not there to build the company from the ground. Be able to answer questions like: How many\u00a0people want your product or service? How much would it cost to acquire customers?\u00a0How much would it cost to acquire\u00a0content you need?\u00a0If you can show the investor that you have de-risked your idea, and tested your thesis, the more they will be able to see that you have gone past the idea stage.<\/p>\n
\nUse your forecast to\u00a0show\u00a0investors how you think. \u00a0For example, if you are projecting your revenue to jump from Q1 to Q2, Noah said that the investor will want to know how you came up with that assumption.<\/p>\n
\nYou don’t necessarily need to be generating revenue to show the potential for monetization. For some, value is based on the number of\u00a0users engaged with your product. If you are not monetizing at the moment, speak to how you plan to in the future.<\/p>\n
\nKnow your key metrics. For example, Noah mentioned that SaaS companies should be at 100k MRR to get to a Series A, but again, these numbers depend on what your business does. Noah referenced Tom Tunguz’s blog<\/a> (VC at Redpoint), as well as the Mattermark<\/a> daily digest as a few good resources.\u00a0He advised, Don’t just stay heads down in building, set aside time to set some goals and look at what key metrics you should be capturing.<\/p>\n
\nAlthough it can be challenging, getting a warm intro proves to the investor that you can reach out and find\u00a0someone interested enough. \u00a0As Noah said, “If you can’t get a warm intro, what does that say about your hustle?” As an entrepreneur, you should be\u00a0reaching out to customers you’ve never met–investors want to see that you have that drive.<\/p>\n
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