Matt Preuss's posts

What’s the Split? How to Fairly Split Startup Equity with Founders and Early Team Members.

Note: When determining your startup equity structure, we recommend consulting with your lawyer. One of the major ways a startup can attract top talent is by offering company equity. From the perspective of a founder, startup equity can be a powerful tool for recruiting and retaining talent, especially when competing against large corporations that can often offer higher wages and additional benefits. There is no “one size fits all” strategy for distributing startup equity. Determining how to split equity among investors and later employees is fairly straightforward, but determining the equity split among founders and the earliest employees can be tricky. You can learn more about dilution and distributing equity with investors here. Even the most experienced leaders struggle with the issue of fairly dividing startup equity. To help alleviate the…

Navigating Your Series A Term Sheet

You’ve just gotten through an exhausting fundraise, congratulations are in order, and now you have an unsigned Series A term sheet in your hand. What’s next? It’s often assumed that you will know what you’re looking at when handed a Series A term sheet, but if you’re a first-time founder, that usually isn’t the case. To help you navigate your Series A term sheet we’ve briefly summarized common fields and terms and what you should be looking for under each one. The fields below are largely based off of Y-Combinators post and Series A Term Sheet template, “A Standard and Clean Series A Term Sheet.” As a note, this is not legal advise and we suggest consulting with your lawyer while reviewing your term sheet.  Liquidation Preferences Liquidation preference is simply…

Matt Preuss - March 14, 2019

#Fundraising

Thinking About Pitching Point Nine Capital? Check Out These Tips.

Point Nine Capital is one of the most—if not the most—sought-after early stage SaaS venture firm in Europe. With a portfolio that includes the likes of  Zendesk, Front, and Algolia, the Point Nine team receives countless decks and pitches every day. Part of the reason they receive so many pitches is Point Nine Capital hosts a contact form on their website that allows visitors to begin the pitch process. We’ve scoured their blog to gather what we believe are best practices when filling out the Point Nine Capital pitch form. The Point Nine Capital Basics This is a pretty straightforward section with a few questions about the founder and firmographics. A couple of key questions: Which category/categories does your startup fall into?  Point Nine is mostly known for investing in SaaS.…

Matt Preuss - February 25, 2019

#Investor Updates

Reactions, Update Template Library, and More

This month we’ve brought you product improvements that are all about making your Updates better. Check out what’s new from the last month below.   Reactions to Updates We all like to know that the work we put into updates is appreciated. Reactions make it easy to know when your stakeholders have engaged with your update. With reactions, recipients can simply give your Update a thumbs-up. Reactions are currently in beta, if you’re interested in having Reactions enabled for your account, send us an email to hi@visible.vc.  Update Template Library Not sure what to include in your next Update? We’ve got your back with our new Update Template Library. We are in early stages of building out our Update Template Library. Add any template to your account with the click of a button. Check out the library here. Have…

Matt Preuss - February 18, 2019

#Product Updates

Total Addressable Market: Lessons from Uber’s Initial Estimates

Rewind to 2009, when a small company called UberCab is pitching the idea of a “next generation black cab service” to seed investors. Operating in just 2 markets (NYC & SF), offering an SMS system to hail a ride, and estimating a $4B market size, UberCab envisioned themselves as the black car leader for professionals in American cities. Fast forward to 2019, Uber operates in over 60 countries, has expanded into food delivery, added coverage outside urban area, become a rental car alternative, and their total addressable market is rapidly approaching $300B (with some estimates surpassing $1T). Investors go back and forth about the importance of TAM, as it is often inaccurate and is constantly changing. David Skok sums it up like this: “TAM’s role in a pitch deck is…

Matt Preuss - February 14, 2019

#Fundraising

11 VC Thought Leaders We Keep Coming Back To

For the past 3 years, we’ve been hard at work scouring the internet for content for our weekly newsletter: The Founders Forward. Over the course of building the Founders Forward, we’ve shared 1000s of articles and have gotten to know different VC thought leaders and influencers. Below, we’ve shared 11 of the VC thought leaders we learn from again and again. Do you follow anyone that we don’t have on our list? Shoot us an email to marketing@visible.vc or send us a tweet. We’d love to build out the list even more! Jason Lemkin Twitter Handle: @jasonlk Tweets About: All things SaaS with a focus on sales, investor relations, and scaling your business to $100M in Revenue. Follow if: You are a SaaS founder or operator with an interest in learning from someone who…

Matt Preuss - January 24, 2019

#Leadership

Ready to Make the Jump from Seed to Series A? Think About These 3 Things.

Raising a Seed round is an incredible accomplishment. For many startups, it’s also the start of a long journey. As more companies get funded at the Seed stage, the competition for Series A capital is growing. In fact, if you are lucky enough to raise a Seed round, your chance of raising a second round is roughly 48%. Outside of the essentials, like finding product-market fit, scaling revenue, and building a repeatable customer acquisition process, there are plenty of other important things to consider as you get ready to raise a Series A. We’ve laid out 3 of them below.   Tracking Metrics & Financial Planning David Cummings, investor and company founder, has found that most Seed stage founders don’t track enough metrics on a weekly basis. Having a grasp…

Matt Preuss - January 10, 2019

#Fundraising

The Top Founder Forward Articles Shared in 2018

In 2018, we’ve sent nearly 50 Founders Forward Newsletter with over 425 third party articles. We include our favorite content for attracting and engaging investors, hiring great talent, company culture, startup finance, leadership and much more. This week, we share the top articles shared in the Founders Forward this year by category. Think you have content that our readers will enjoy? Shoot us a message with your content to foundersforward@visible.vc. Attracting & Engaging Investors How to Make the Perfect Pitch Deck Kolby McElvain of High Alpha draws the parallels between telling a great story and creating a pitch deck by laying out a pitch deck template in 12 “chapters.” The top 3 Things are Looking for in SaaS Startups Christoph Janz of Point Nine Capital explores the current climate of…

Matt Preuss - November 23, 2018

#Software & Tools

Series A Funding — What Investors Are Saying in 2018

2018 is shaping up to be a record-setting year for venture capital. Through the first 3 quarters there has been $84B of venture capital invested, and estimates suggest that number will surpass $100B by the end of the year.The new normal has turned into more capital going to fewer, larger deals. Seed stage investing has morphed into a “seed phase” with more early-stage companies raising their first round later in their life cycle changing what Series A funding means to both companies and investors. As Semil Shah puts it, with these new trends comes, “a new breed of Series A investor, most of whom arrived at this point by slowly scaling up from smaller, more modest seed funds.” This shift has investors  across the industry talking. We’ve laid out some…

Matt Preuss - November 1, 2018

#Fundraising

The Investor Due Diligence Checklist: How to Treat New VCs Like Business Partners

You can look at adding an investor to your company in one of two ways; simply a source of capital, or a partner to help you grow your business. As Sangram Vajre, Founder of Terminus, puts it, “Finding a VC firm is almost like finding a co-founder. Any due diligence that you would do to add a co-founder you should do when adding a VC partner.” If you opt to find a VC that you can count on to add value outside of capital, it is your job as a founder to ensure you’re adding the proper partner. Due diligence is a part of the funding process that all founders are expected to complete. You can flip this process on its head by asking the same of your potential investors.…

Matt Preuss - October 25, 2018

#Fundraising