Process & Velocity
A high-velocity pipeline process is a key prerequisite for an effective raise.
Process & Key Decisions
Statistically, most investors that engage with a Company end up not investing. And most companies need only one anchor investor (which can then be used to coalesce other investors around the round).
Given the above context, it is critical to view the fundraise as a process, and not as an event. Instead of putting too much weight into a few conversations that go well, users must run the fundraise as a process that ultimately delivers the right results (independent of the views, decisions or actions of any one set of investors).
The below visual shows an overview of a recommended process:
The above visual provides a decision-making framework for common scenarios in the fundraising process, all through our crm platform. Instead of getting stuck on the dead-ends, users can view these as inevitable resting points for many investors that are either not leaning or, or that they are unable to access.
The below table expands on the key decision points in the process to ensure a high-velocity approach:
| Process Part | Scenario | Recommended Decision | Rationale |
|---|---|---|---|
| Identification & Qualification | The investor does not meet one of the criteria identified by the user | Disqualify the investor and move on | It is critical to spend time on the right investors |
| Access | User is unable to identify an intro path and/or get an intro | Temporarily move the investor to “Unable to Access” and move on | There are probably many other investors that are a strong-fit and that you can easily access |
| Process | Investor has gone silent and/or has not responded to the last follow up email | Move the investor to the “Leave for Next Round” stage and move on | It is crucial to know when an investor is NOT leaning in, and to focus efforts on those are ARE leaning in |
A key component here is to move on when an investor stops engaging or responding. Statistically, most investors that a user engages with will not lean in. To find success, it is important for users to correctly discern when an investor is leaning in (versus when they are not).
For investors that are not leaning in, users should stay in touch and build the relationship for subsequent financings. For investors that are leaning in, users should prioritize these discussions, and spend most of their time in this part of the process.
Process Velocity
A high-velocity pipeline is one in which new investors move through the different stages at a rapid pace. By bringing process excellence to identifying and accessing investors, users can develop a high-velocity pipeline rhythm to maximize the odds of success.
In order to run the fundraising pipeline at a rapid pace, users need to build up-front clarity on how to tackle given situations. With the above process laid out, users know exactly how to respond when s/he is unable to access a given investor, or when an investor stops engaging.