With the budgeting for the $300k seed round finished and the equity pre and post financing understood, it’s time to think through the ideal investor mix for the round. Most entrepreneurs just want to raise the money and move past it while others are more strategic about who they want to get involved with their startup.
To me, the ideal investor mix represents domain experts that you think will be most important over the next 12 – 18 months to both accentuate strengths and shore up weaknesses. Here’s an ideal investor expertise mix for a B2B Software-as-a-Service startup (assume a mix of $25k and $50k investments):
- Product – someone who understands how to build a scalable SaaS product as well as the intricacies of product management
- Sales – someone who loves figuring out a sales process and signing the first 10 customers (signing up the first 10 customers is a different skill set than managing a team of 50 sales reps)
- Marketing – someone who knows SEO, SEM, social, and marketing automation
- Startups – someone who’s versed in building teams, raising money, and general startup functions
Other important areas include engineering, services, finance, etc. When raising money, investors like to hear you’ve thought through the types of experts you want as investors and why. There’s no perfect mix of investors but putting together an ideal investor mix makes sense.
What else? What are your thoughts on the ideal investor mix for a $300k seed round?