Founders and CEOs of early-stage startups are frequently faced with the daunting task of raising venture capital for their companies. Many face that challenge ill-equipped, just as serial entrepreneur Carol Realini had in 1997 when she co-founded her first company. Since then, Carol has successfully raised over 175 million in financing for her companies. Women entrepreneurs can be especially challenged in raising venture capital for their startups because they lack training, role models and sometimes just don’t see themselves being able to succeed. Because of this, Carol coaches Women 2.0 entrepreneurs to tackle this with determination, saying “It is not rocket science, but it is very hard work.” Promoting your company successfully to raise capital is a skill that can be mastered, and unfortunately there is no formal training process for this. Everyone has to learn it. Over the years she has formulated a rubric for raising money, building on lessons learned to create a more efficient and less risky approach. Here are her tips for first-time entrepreneurs seeking capital for their ventures.

1. Obopay Confidential

2. Understand Silicon Valley
 Most VC money is in Silicon Valley
 Need to understand how things work and happen here
 There are influencers & networks you need to navigate.
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3. Get advisors
 Many challenges you
will need help
 Best advisors are
experienced
entrepreneurs
 People with strong
Silicon Valley
networks
 Recruit with your
passion and vision
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4. Prepare your plan and presentation
 Preparation for VC
meetings is very important
 Build your strategy, plan,
financials, and presentation
 Figure out how much
money you need to raise
– now and over the life of
the company
 Practice with friends and
advisors
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5. Get a Great Lawyer
 Need a great lawyer to
support your company
 One that has great
network
 Strong partner who will
get involved with your
company
 Consider delay or reduce
fees until you get funded
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6. Carol’s Law
 10 really successful first meetings with qualified investors
 5 investors doing due diligence
 3 term sheets
 1 close
 Key is solid pipeline and momentum. Expect fall out
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7. Target specific VCs
 VC’s who do your stage, have money, haven’t invested in
competition, good rep, like your category.
 Have they invested in a women entrepreneur before?
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8. Warm introductions only
 Not allowed to do cold calling
 Get advisors or lawyer to make an introduction and
encourage them to meet with you.
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9. Audition with an investor you don’t want
 Force rank your VC targets and do a few low priority
investors first
 You will learn a lot in the first few meetings – you’ll get
better
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10. Investigate the NO’s
 Expect some rejection – part of the process.
 You need to know why they said no. The real reason.
 Helps you refine your fundraising efforts.
 Painful – but do it. Listen to all, take advice from experts
only.
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12. Final thoughts
 Let your passion come through to potential investors
 Not everybody will be sold, don’t let that discourage you
or your team.Your job is to find the investors, advisors,
and employees that will help make this happen. It is not a
popularity contest.
 Don’t tell investors know who else you are talking to – if
they join together it reduces the count in your pipeline.
 You can be successful but be prepared to work very hard.
You will need to get your team to step up because your
fundraising will take time away from building the business.
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13. Follow me on TWITTER - @carolrealini
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