SaaS Buyers' Club Startup funding explained: Master VC fundraising for your startup with Stephane Nasser
In this episode 53 of SaaS Buyers Club, your host Omeed Tabiei, Managing Partner at Optimist Legal and seasoned counselor for SaaS founders, welcomes Stephane Nasser from OpenVC.
Steph is a veteran at the junction of corporate innovation, tech entrepreneurship, and venture capital, and in this episode he demystifies the world of VC funding.
He runs OpenVC, an app designed to connect founders with investors without a broker fee.
Omeed and Steph reveal critical missteps such as assuming LLCs are suitable for VC funding and the frustration of overoptimistic first-time founders who venture into the fundraising realm without complete knowledge.
Steph's journey spans from his initial role at Microsoft Ventures to launching his own deep tech startup, offering a firsthand look at the experiences that shaped his insights.
To succeed in VC funding, Steph advises founders to view their businesses not as their 'babies' but as marketable, scalable models that can attract significant capital.
The duo explores the reality that many startups are simply not fundable at their current stage, emphasizing the need to 'raise to win,' ensuring most variables are already in their favor before approaching investors.
They also discuss the modern ease of building and distributing SaaS products through no-code and low-code tools, shifting the necessity of early-stage VC funding.
For some, bootstrapping might be the wiser path. The episode also covers the importance of maintaining a professional structure, understanding investor expectations, and mastering the delicate balance of confidence and humility when pitching.
OpenVC provides a robust platform with tools like a Fundability Test to help startups assess their appeal to investors.
Steph highlights the need for continuous learning and adapting, stressing that long-term consistency and excellence often dictate ultimate success in the startup world. For anyone considering VC funding, this episode is packed with crucial insights and practical advice.
Tune in to gain the knowledge you need to navigate the complex venture capital landscape successfully.
00:00 Introduction to SaaS Buyers Club
00:28 Meet Steph from OpenVC
01:03 The Journey of OpenVC
04:08 Understanding Fundability
06:40 The Reality of VC Funding
12:07 Bootstrap vs. VC Funding
18:23 Thriving with VC Backing
27:13 Executing the Raise
32:06 Basics of Fundraising: Round Size and Valuation
33:01 Legal Considerations: Delaware C Corp vs. Texas
34:13 Converting LLC to C Corp: Costs and Timeframe
36:45 Checklist for Raising Funds: Investor Communication
37:52 Understanding Investor Criteria: Geography, Check Size, and Stage
39:01 VC Communication: Advice for Founders
41:21 Persistence and Long-Term Success in Entrepreneurship
51:44 The Importance of Learning the Fundraising Process
58:13 OpenVC: Tools and Resources for Fundraising
01:01:19 Conclusion and Final Thoughts
Follow the Guest: Stephane Nasser
► https://www.linkedin.com/in/stephanenasser/
Click here to sign up to take The Fundability Test (free): https://www.openvc.app/fundability
Follow the Host: Omeed Tabiei
► https://www.linkedin.com/in/Omeed-Tabiei
► https://www.facebook.com/omeedt
►https://www.instagram.com/saasbizlawyer
How to reach Optimist Legal about your SaaS business to explore working with us
► https://www.optimistlegal.com
►Omeed@OptimistLegal.com
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About Optimist Legal:
Optimist Legal is a SaaS corporate and business focused law firm with extensive experience in SaaS. When you work with Optimist Legal for your SaaS business, you can rest assured that you're working with diligent experts that are going to protect your interests every step of the way.