a16z Podcast: How To Raise Money From A Venture Investor

Jul 18, 2019

In this insightful discussion, Scott Kupor, Managing Partner at Andreessen Horowitz and author of "Secrets of Sand Hill Road," shares his wealth of experience in fundraising. He emphasizes the importance of understanding venture capital fundamentals, aligning funding requests with future milestones, and navigating complex investment structures. Kupor also highlights the significance of independent board members in startups and shares essential tips on managing intellectual property risks for entrepreneurs. His actionable advice is a must for anyone looking to raise venture capital.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ADVICE

Incorporation Advice

Incorporate as a Delaware C-corp due to established legal precedent and investor familiarity.
This simplifies shareholder management, share class distinctions, and the eventual IPO process.

ADVICE

IP Protection

Protect your intellectual property when starting a company while employed elsewhere.
Avoid using work devices and consider a leave of absence to maintain ownership.

ADVICE

Fundraising Strategy

When fundraising, base your ask on the milestones needed to secure your next funding round.
Articulate clearly how different funding levels will impact your progress.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

So you've decided raising venture capital is the best fundraising strategy for your startup. Now what?

In this second of a 3-part series, a16z Managing Partner Scott Kupor shares actionable fundraising advice based on his experience of seeing thousands of startup pitches and working on all of a16z's investments.

Want to learn more? Read Scott's book "Secrets of Sand Hill Road: Venture Capital and How to Get It" (https://a16z.com/book/secrets-of-sand-hill-road/).

The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.