Overprepare or underperform. As a founder seeking VC, you can fall into one of two categories: type A or empty-handed. Learn about the tools that can help you succeed with Fidelity Private Shares.
Let’s face it: Founders are a dime a dozen these days.
That’s not to say your idea, strategy, or pitch isn’t unique. But in a world where new startups pop up on the daily, it’s simply not enough to just have a good idea. To stand out from the mountain of pitches VCs receive, you have to come prepared with more than just flash. What investors look for now is substance, planning, and quality.
That’s where Fidelity Private Shares can help. They’ve worked with successful founders every step of the way to impress those who may invest. They’ve templatized the key tool founders need to show up ready to hit the ground running. You know the expression “Don’t put the horse before the cart”? Well, this is like a souped-up cart with everything you need (no horse required).
Putting it all on the table
Before getting into why these tools are so important, we should first explain what they are. Tech Brew’s gone into extensive detail before, but who doesn’t love a good refresher? One of the most important tools at your disposal is a cap table. The cap table is a handy breakdown of a company’s ownership structure. It keeps tabs on which founders, employees, shareholders, and so forth own what percentage of the company.
This is a living, breathing document that evolves with every move the company makes, from fundraising to hiring to issuing new grants and beyond. Knowing what goes into a cap table is just the start. It’s also very easy for things to slip because a proper cap table requires constant upkeep. If that information isn’t accurate or all in one place, it can be tricky for your business, and even worse—it can look sloppy to an investor. Fidelity Private Shares’ all-in-one equity management platform helps remove the stress of managing it all.
The road less invested
Now, you have full liberty not to use the tools at your disposal. That’s allowed, but actions have consequences. Especially when it comes to investor meetings. Take Darrell West, co-founder and CFO of DepositLink, for example.
“One of the first investors we spoke with when we were raising funds asked for our cap table,” West said. “I gave him a blank stare. After that, the discussions were short, and we didn’t go further. It was a recognition that if someone is going to give you money, they want to make sure you’re a professional organization with a degree of professionalism. Eventually, I found my way to Fidelity Private Shares—very happy. But that was the turning point for me.”
This was a valuable learning moment for West, as it pertained to how he prepared for investor meetings. Showing up empty-handed leaves room for these “blank stare” moments. You want to be firing on all cylinders, not firing blanks.
Equipped for honor role
Think of cap table management as extra credit rather than an annoying task. No one wants to invest in the B+ student when there’s an A+ student there who did more to prep.
Taking the extra step to show up prepared does a lot more than just show initiative. It’s a way to assure investors that you’re serious about your business. Sure, you can show up with a barebones spreadsheet, and say you’re ready, but as your business evolves, it may outgrow such a simple tool. Fidelity Private Shares wants you to show up presenting your best. It’s the same as your mom getting you dressed for school picture day. It can feel like a hassle, but it’s a lot better than forever being remembered as the kid who showed up in his pajamas (unless, of course, your company deals in pajamas, in which case that’s a total power move).
The long and short of it is that in order to prepare, you must overprepare. If you’re unwilling to do it at the start, what possible reason would investors have to think you’ll do it later on?
It may seem like tedious work, but Fidelity Private Shares can help make it easy to manage. With tools like cap table management, a data room, scenario modeling, and more, you’ll have everything you need to make a spectacular impression and turn potential investors into actual investors. So put your best foot forward with Fidelity Private Shares, and rehearse that pitch one more time—because it’s time to get serious.