Seeding: the mistakes not to make for successful fundraising
FrenchWeb: What are the mistakes made by a fundraising start-up?
ISAI Management is a Parisian fund dedicated to Internet entrepreneurs. In 2015, it set up a specific seed fund.
Mounia Rkha, Seed Club Manager at ISAI Gestion: The first mistake is not choosing the right time (or the right amount) to raise. This tends to lengthen the duration of the fundraiser and make it very painful for the founders. A startup is ready for a seed round once it has demonstrated its ability to execute and launch a working prototype whose results can be extrapolated, not before.
When you raise the right amount at the right time, you’re surprised how fast and smooth it can be. On the other hand, do not hesitate to request informal meetings “upstream” with VCs if you have any in your network because the discussions can be interesting and allow you to prepare the following steps …
When the entrepreneurs are straightforward and straightforward, the pitch is always good and the exchange interesting. The vast majority of entrepreneurs are pretty exciting people, so I don’t really like to put myself in the position of a judge (maybe it was my experience as a startup that taught me that). There is still a pitch that amuses me a lot:
The specifications are ready and we are raising 2 million euros to develop the site ”. It is’ so 2001“! Completely uncorrected from the reality of today’s start-ups, whose founders know how to code and accomplish wonders with very little capital initially.
Based in San Francisco, Paris and Berlin, Partech