Welcome to the Thunder Founder Newsletter issue #10!
You can expect us to share a new topic every week relevant to scaling your company and successfully fundraising!
Understanding how VCs build their portfolio is critical in designing the perfect pitch.
VCs are not charity baskets! You need them to fund your startup, but they need you to return their portfolio. Understanding that they look at every company - including yours - as a speculative bet that can create a large return for the fund is important for founders to understand. Knowing how VCs construct their portfolio is helpful in creating an effective pitch. This is because VCs typically have a specific investment strategy, risk tolerance, and target sectors in which they invest. If you understand the type of multiples a VC is looking for, it can help you adjust the numbers and business elements you want to focus on. Additionally, being familiar with the types of companies in a VC's portfolio can give valuable insight into the type of investments the VC prioritizes and can provide inspiration for the entrepreneur's pitch.
At Thunder, we help you craft your pitch around what VCs want to hear. If you're ready to raise capital, let us know and upgrade to Premium to unlock your targeted investor list of who will have a higher probability of investing.
What the Experts Have to Say
3 Core Principles of Venture Capital Portfolio Strategy
Learn why VCs care about each investment and why they keep a large portion of their funds for follow-on investments. Read More
Venture Fund Portfolio Construction
This article jumps into the numbers and uses Tactyc to demonstrate how different multiples and strategies will impact investor returns. Listen Here
Seed Fund Portfolio Construction for Dummies
If you are a founder considering stealth mode, you should read this article about other companies that have been successful in doing so, but also the risks that you will face. Read More
Let's stay in touch:
Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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