fundraising · v3.1.0 · 2026-11-04 · sha256 61c28bb59e4306f7
fundraising v3.1.0A
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--- name: fundraising description: "Use when raising capital or selling a business: startup seed/venture rounds, GP fund raises from LPs, or company M&A/strategic exits—shared competitive process (pipeline, ABC, lead/anchor, second offer, deadline close) plus track-specific playbooks from Startup Seed Raising Skilzzz, curated X posts, and the Fundraising YouTube playlist." version: 3.1.0 author: Open skills contributors license: MIT metadata: tags: [fundraising, seed, venture, lp, fund, m-and-a, pipeline, term-sheet] source_article: https://swooshing.wordpress.com/2009/03/19/startup-seed-raising-skillzzz/ --- # fundraising > **How to read this** > > - **Agents:** Follow **Authorization**, **Agent guardrails**, and **Agent procedure** literally. Draft only until the approver signs off. > - **Humans:** Use **Shared core** + one **Track** module. Open `references/` for term-sheet, DDQ, cap-table, and compliance detail. > - **Jargon:** [`references/glossary.md`](references/glossary.md) > - **Index:** [`references/README.md`](references/README.md) · **Public overview:** [`README.md`](README.md) **Not legal, tax, or investment advice.** This skill is operational guidance for founders and agents. Binding terms, offerings, tax, and wires require **lawyer review** and **CPA review** where noted in references. ## Table of contents - [End-to-end references](#end-to-end-references) - [Sources](#sources) - [When to use](#when-to-use) - [Agent guardrails: stop and ask the human](#agent-guardrails-stop-and-ask-the-human) - [Authorization and boundaries](#authorization-and-boundaries) - [Shared core process (all tracks)](#shared-core-process-all-tracks) - [TheList — pipeline tracking](#thelist--pipeline-tracking) - [Outreach cadence (defaults)](#outreach-cadence-defaults) - [Reporting (all tracks)](#reporting-all-tracks) - [Track — Startup seed / venture](#track--startup-seed--venture) - [Track — Fund raising from LPs](#track--fund-raising-from-lps) - [Track — Selling the company / M&A](#track--selling-the-company--m-a) - [Output standard](#output-standard) - [Verification checklist](#verification-checklist) ## End-to-end references | Topic | File | | --- | --- | | Term sheets & deal economics | `references/deal-terms.md` | | Due diligence & data rooms | `references/due-diligence-checklists.md` | | Cap table & dilution math | `references/cap-table-math.md` | | M&A process & timelines | `references/ma-process.md` | | Fund closes & Reg D / marketing | `references/fund-closing-and-compliance.md` | | Post-close reporting & board | `references/post-close.md` | ## Sources | Layer | Credit | Local | | --- | --- | --- | | Core process (seed) | [Startup Seed Raising Skilzzz](https://swooshing.wordpress.com/2009/03/19/startup-seed-raising-skillzzz/) (Travis Kalanick, 2009) | `references/startup-seed-raising-skillzzz-summary.md` | | X — pitching VCs & funds | 14 curated posts (2026-11-04); per-post authors linked below | `references/pitching-vcs-x-bookmarks.md` | | YouTube — M&A | [Fundraising playlist](https://www.youtube.com/playlist?list=PLJaB9gz_nmkEZhl3oov2PZHmYUOCqFzvP); POTOMAC M&A (Paul Giannamore) | `references/youtube-fundraising-playlist/` | | Qualifying dialogue | *Straight Line Persuasion*, Module 7 — The Art of Qualifying (paid sales training course); paraphrased only in this file | — | | Books | *Winning Through Intimidation* (Robert J. Ringer) | `references/book-lessons.md` | | *Positioning* | Al Ries & Jack Trout — [BestWriting summary](https://bestwriting.com/positioning-summary) | `references/book-lessons.md` | | *Breakthrough Advertising* | Eugene M. Schwartz — [Valchanova book notes](https://valchanova.me/breakthrough-advertising-copywriting-book-review/) | `references/book-lessons.md` | | *Angel* | Jason Calacanis — [Max Mednik notes](https://www.maxmednik.com/blog/notes-on-angel-by-jason-calacanis), [Haley Bryant summary](https://www.haleymbryant.com/blog/angel-by-jason-calacanis-summary) | `references/book-lessons.md` | | *Zero to One* | Peter Thiel & Blake Masters — [Medium commentary summary](https://xdev200200.medium.com/zero-to-one-commentary-summary-3695704017f9) | `references/book-lessons.md` | | Five Laws of Fundraising | John Kim — [Vessel recap](https://vessel.co/resources/blog/the-five-laws-of-fundraising-a-70-billion-masterclass-in-persuasion-pipeline-and-process-with-john-kim) | `references/article-lessons.md` | | GTM Engine of Fundraising | JD St-Martin & Jonathan Alden — [Vessel guide](https://vessel.co/resources/blog/the-go-to-market-engine-of-fundraising-complete-2026-guide-to-applying-b2b-saas-model-to-lp-relationships) (vendor content) | `references/article-lessons.md` | | *Never Split the Difference* | Chris Voss — [Runn summary](https://www.runn.io/blog/never-split-the-difference-summary) | `references/article-lessons.md` | | *Pitch Anything* | Oren Klaff — [Deven Davis summary](https://www.devendavis.com/book-summaries/pitch-anything); [blas.com notes](https://blas.com/pitch-anything/) | `references/book-lessons.md` | | End-to-end process (terms, DD, math, M&A, fund compliance, post-close) | Paraphrased references below | `references/deal-terms.md`, `due-diligence-checklists.md`, `cap-table-math.md`, `ma-process.md`, `fund-closing-and-compliance.md`, `post-close.md` | | Official forms (v3.1.0 parse) | YC SAFE docx; NVCA 2020 term sheet; Series Seed GitHub; ILPA Model LPA/DDQ/reporting defs; 15 U.S.C. 80a-2/80a-3 | See `references/` headers and URLs below | | Glossary | In-skill jargon | `references/glossary.md` | ### End-to-end process source URLs (paraphrase only; copied exactly) - https://www.ycombinator.com/documents - https://bookface-static.ycombinator.com/assets/ycdc/SAFE%20User%20Guide-a47c6588327d73aa2799e61ed7c2cae9f1a0ee9acfa9c43b62039dc06e715832.pdf - https://nvca.org/model-legal-documents/ - https://feld.com/archives/2005/01/term-sheet-liquidation-preference/ - https://feld.com/archives/2005/01/term-sheet-protective-provisions/ - https://feld.com/archives/2005/01/term-sheet-board-of-directors/ - https://feld.com/archives/2005/02/term-sheet-drag-along/ - https://feld.com/archives/2005/08/term-sheet-series-wrap-up/ (search excerpt only) - https://fullratchet.net/episode-10-the-term-sheet-feat-brad-feld/ (search excerpt only) - https://ilpa.org/wp-content/uploads/2019/06/ILPA-Principles-3.0_2019.pdf - https://ilpa.org/industry-guidance/principles-best-practices/ilpa-principles/ - https://www.fundlaunch.com/solutions/lpa-drafting - https://www.mintz.com/insights-center/viewpoints/2871/2025-03-31-seller-considerations-when-negotiating-letter-intent - https://morganandwestfield.com/books-online/chapter-19-the-letter-of-intent/major-clauses/ (search excerpt only) - https://www.casneredwards.com/representation-and-warranty-insurance-managing-risk-in-your-next-ma-deal/ (search excerpt only) - https://fasthofflawfirm.com/blog/escrows-and-holdbacks (search excerpt only) - https://www.crv.com/content/series-a-funding - https://ilpa.org/wp-content/uploads/2021/11/ILPA-DDQ-2.0.pdf - https://ilpa.org/wp-content/uploads/2024/10/ILPA-Institute-Operational-Due-Diligence-for-the-Limited-Partner.pdf (search excerpt only) - https://www.breakwaterma.com/blog/seller-due-diligence-checklist - https://praxisrock.com/insights/sell-side-m-a-process - https://windsordrake.com/process/sell-side-process/ - https://auxocapitaladvisors.com/sell-side-m-a-process/ (search excerpt only) - https://auxocapitaladvisors.com/sell-side-mna-timeline/ (search excerpt only) - https://www.alehar.com/resources/articles/navigating-the-sell-side-manda-process (search excerpt only) - https://www.sec.gov/resources-small-businesses/exempt-offerings/private-placements-rule-506b - https://www.sec.gov/resources-small-businesses/exempt-offerings/general-solicitation-rule-506c - https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-3 - https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/investor-50 - https://www.sec.gov/resources-small-businesses/small-business-compliance-guides/investment-adviser-marketing - https://www.eisneramper.com/insights/private-equity/subsequent-closings-finds-pe-0623/ - https://www.sec.gov/resources-small-businesses/glossary (search excerpt only — qualified purchaser) - https://yonder.vc/resources/investor-update-template/ - https://ilpa.org/industry-guidance/templates-standards-model-documents/reporting-template/ - https://www.ic3.gov/PSA/2023/PSA230609 - https://www.devendavis.com/book-summaries/pitch-anything - https://blas.com/pitch-anything/ - https://www.neurosciencemarketing.com/blog/articles/pitch-anything-by-oren-klaff.htm (search excerpt only) - https://nvca.org/wp-content/uploads/2020/08/NVCA-2020-Term-Sheet.docx - https://github.com/seriesseed/equity - https://ilpa.org/wp-content/uploads/2020/07/ILPA-Model-Limited-Partnership-Agreement-WOF.docx - https://ilpa.org/wp-content/uploads/2020/07/ILPA-Model-Limited-Parnership-Agreement-Deal-By-Deal.docx - https://ilpa.org/wp-content/uploads/2020/07/2020.07.29-ILPA-Model-LPA-Overview-WOF-Version.docx - https://ilpa.org/industry-guidance/templates-standards-model-documents/model-limited-partnership-agreement/ - https://ilpa.org/wp-content/uploads/2025/02/Reporting-Template-Definitions.pdf - https://ilpa.org/wp-content/uploads/2025/04/ILPA-Performance-Template-Definitions-Granular-Methodology-v1.1.pdf - https://ilpa.org/wp-content/uploads/2025/09/Combined-Overview-ILPA-Templates.pdf - https://www.law.cornell.edu/uscode/text/15/80a-2 - https://www.law.cornell.edu/uscode/text/15/80a-3 **Living sources:** Periodically refresh (1) the curated X post compilation, (2) YouTube **Fundraising** playlist **summaries**, (3) `references/book-lessons.md`, and (4) `references/article-lessons.md`; update attributed tables here and bump `version` (see `CHANGELOG.md`). **Optional — Web3:** Token warrants, SAFT, and crypto-native investor vetting—skip for purely equity processes. ## When to use Use this skill when a **founder**, **GP**, **founding team**, or delegated agent should: - Run any **capital process**: startup seed/angel/venture, **first-time or follow-on fund** LP fundraising, or **company sale / recap / strategic exit**. - Build **TheList** (target universe), qualify prospects fast, create **honest momentum and competition**, secure a **lead or anchor**, race for a **second term sheet / LOI / anchor LP**, and **close on a deadline**. - Prepare pitches, FAQs, fund decks, teasers/CIMs, data rooms, and **pipeline reports** with decisions flagged for approver sign-off. Do **not** use for: generic sponsorship or partnership sales, or strategy reviews with no active raise or exit. Pick **one primary track** (startup, LP fund, or M&A) per engagement; apply the **shared core** to all three. ## Agent guardrails: stop and ask the human The agent **stops** and gets **explicit human approval** before any of the following (derived from end-to-end references and [FBI IC3 BEC PSA](https://www.ic3.gov/PSA/2023/PSA230609)): 1. **Outreach** — sending, scheduling, or posting email, DM, LinkedIn/X, intro requests, or follow-ups to investors, LPs, buyers, bankers, or agents (draft only until approved). 2. **Numbers and terms** — stating or changing valuation, cap, discount, price per share, round size, allocation, fee/carry, earnout, escrow, working-capital peg, or performance figures (IRR, TVPI, MOIC) outside the company. 3. **Documents** — signing, e-signing, accepting, countersigning, or sending term sheets, SAFEs, side letters, LOIs, NDAs, subscription docs, LPAs, purchase agreements, capital call notices, board consents, or DocuSign envelopes. 4. **Money and wires** — creating, changing, sending, or confirming wire/ACH instructions or funds-flow memos. Confirm bank details **by phone** using a number from an independent source (never from the email). Treat changed instructions, urgency, secrecy, or look-alike domains as fraud until a human verifies; misdirected funds → bank recall immediately and report at ic3.gov. 5. **General solicitation** — public posts, website, press, podcast, social, newsletter, or event remarks about a live raise (506(b) taint risk; 506(c) requires verified accredited buyers — **lawyer review** decides). 6. **Investor eligibility** — admitting investors or accepting money before human + counsel confirm accredited/qualified-purchaser status, KYC/AML, and bad-actor checks. 7. **Marketing Rule** — fund performance, testimonials, endorsements, ratings, or hypotheticals in LP-facing materials need compliance review. 8. **Confidentiality** — opening or sharing data-room access, CIM, cap table, customer names, or NDA-covered materials; granting new parties access. 9. **Exclusivity** — agreeing to or extending no-shop; telling bidders where they stand in a process. 10. **Filings** — remind humans of Form D (15 days after first sale) and state notices; the agent does **not** file. 11. **Legal or tax interpretation** — non-routine questions go to **lawyer review** or **CPA review**. 12. **Uncertainty** — when counterparty identity or request legitimacy is unclear, stop. ## Authorization and boundaries - **Draft and research only** until the founder or GP approves a specific outbound (email, DM, deck, data-room grant, term acceptance, or signature). - Never commit to valuation, allocation, side letters, token economics, fund terms, or material deal terms without explicit approval of that exact document. - Never share another party’s terms, cap table, or diligence notes without permission. - Keep external narrative consistent with **approved** positioning; do not volunteer unverified distress or “sunset” storylines without approver and **lawyer review**. --- ## Shared core process (all tracks) Distilled from Skilzzz (2009) and aligned with competitive M&A process design. Loop back when the pipeline stalls. ### 1 — Build a large target list (TheList) 1. Map **where capital or buyers concentrate** for your track (see track modules for universe types). 2. **Short first contact:** goal is a meeting or NDA, not the full deck on cold outreach. 3. Log every contact in **TheList** the same day; dedupe against CRM. 4. Size top-of-funnel to the track (startup: volume benchmarks in **Track — Startup**; M&A: curated 30–50+ when scale warrants; fund: anchor LP list + long tail). 5. Prioritize **logical fits** over a long tail of long shots (after Ringer, *Winning Through Intimidation*). For startup rounds, mine **co-investor lists** from existing angels and leads (after Calacanis, *Angel*). 6. **Concentrate** on a narrow investor or LP segment you can saturate before spraying broadly (Ries & Trout, *Positioning*). Avoid the **everybody trap**—positioning requires sacrifice (Positioning). ### 2 — Qualify fast Qualifying is still **closing**: every question should earn the next minute of attention (*Straight Line Persuasion*, Module 7 (sales training course)). Adapt consumer-sales qualifying to **investor, LP, and buyer** conversations. 1. First meetings: lead with a **short** core narrative only after permission to qualify—or open with questions when the slot is tight. Default **5–10 minute** story (fund thesis / teaser summary) once fit is plausible, then conversation. 2. **Two parts to every question:** the words and the **tone**. Prep **track-specific** qualifying questions (startup: stage, check size, decision process, timeline; LP: fund size, pacing, co-invest, Fund I vs emerging; M&A: strategic rationale, process, financing). **Memorize** the set, then **adapt live** so you never sound like you are reading a script; skip questions already answered. 3. **Permission to qualify:** transition with something like “just a couple of quick questions so I don’t waste your time”—helpful, matter-of-fact tone. Avoid a weak add-on such as “is that okay?” that undercuts authority (Module 7). 4. Discover the counterparty’s **logical and emotional why** (mandate, career risk, legacy, synergy, return hurdle)—not a blunt “why are you doing this?” Use big-picture prompts: ultimate objective, biggest headache, what matters most, ideal outcome for *their* side. 5. **Money and capacity** early, casually: indicative **check size**, **fund remaining capacity**, **buyer financing source**, decision-makers—**“no big deal”** / suitability tone, not inquisitor tone. For M&A/strategics, clarify **liquid** availability and who must approve (Module 7). 6. **Rapport while qualifying:** implicit **care**, **trust**, and **expertise**; find **common ground**; **match energy** when mirroring answers (slightly elevate only when appropriate). Do **not** pitch the round, deck, or deal while qualifying—**keep powder dry**; let them talk without narrating how perfect the fit is (Module 7). 7. **Qualify out:** if fit or capacity is wrong, **do not pitch**—biggest time waste and it poisons funnel intelligence (after Ringer, *Winning Through Intimidation*). Confirm **principal vs intermediary** and real decision authority before deep materials. Balance: do not **over-qualify** into only “perfect” names; calibrate to your track’s volume needs. Deal in **facts that move the process**, not wishful narratives (Ringer). 8. **Transition when true only:** e.g. “Based on what you’ve told me, this looks like a fit”—then deeper materials or partner meeting. If not true, pass cleanly and ask for a referral. 9. Maintain a tight **FAQ** for when you move to presentation (market, traction or track record, team, use of proceeds, competition, risks, timeline). 10. **Pass early** when fit is wrong; ask **“Who else should we meet?”** on every qualified touch. 11. Pipeline hygiene: if a counterparty **no-shows twice**, one reschedule then a direct “cancel or prioritize?” message (approver approves tone) ([@dunkhippo33](https://x.com/dunkhippo33/status/1785895882174668834)). 12. **Calibrated how/what questions** surface real constraints without debate—e.g. what matters most, how approval works, who else must agree (after Voss, *Never Split the Difference*). **Label** stated fears (dilution, key-person risk) to build trust (Voss). Treat early **yes** as provisional until confirmed; a safe **no** often hides the real issue (Voss). ### 3 — Always Be Closing (ABC) Before leaving any substantive conversation, establish: | Output | Requirement | | --- | --- | | Interest band | pass / soft / interested / ready to dig in | | Indicative size | Rough check, commit, bid range, or LP ticket—silence is failure | | Next step | Dated follow-up, partner meeting, data room, or process round | | Hypothetical | “If we lock a lead at \[range\], how much would you want in?” (adapt wording per track) | Reject vague “circle back” without date and owner. Use the same **disarming tone** when locking **indicative size** in ABC as when qualifying (Module 7). Treat the first **“no”**, **“not now”**, or **“need to think”** as normal—not failure. Do not argue the objection head-on; clarify **certainty and fit** (“does the idea make sense?”) before pushing terms or a deck send (Module 7). A pass is routine—move to the **next qualified** counterparty without stalling (after Ringer, *Winning Through Intimidation*). **Close means funded:** log **wires and signed closes**, not soft verbal interest alone (Ringer). **Verify** commitments: align words, tone, and next steps; confirm critical points more than once (Voss, *Never Split the Difference*). ### 4 — Credibility and passion **Credibility:** Do not fight the truth. Acknowledge weaknesses; state **mitigation** (what you are doing about risk). Never fake certainty. Align **deck, data room, and live metrics**—polish without substance fails (Ringer). Show **capital efficiency** and how prior money was spent (after Calacanis, *Angel*). Present a **concrete plan** with milestones, not only “we will iterate” (after Thiel, *Zero to One*). Open as a **peer with options**, not a supplicant (Ringer). **Frame control** and **local status:** lead with domain expertise; avoid beta traps and supplicant rituals; if you are explaining your authority, you already lost the frame (Klaff, *Pitch Anything*). **Passion:** Genuine energy and conviction without hype that contradicts facts. **Persuasion (Kim):** **Emotion decides; logic justifies**—lead with credible desire or risk reduction, then data for their internal story (*Five Laws*, John Kim, Vessel recap). Stay calm; righteousness kills influence (Kim). **Positioning (Ries & Trout):** narrative lives in the **listener’s mind**—start from their category beliefs, not your feature list ([summary](https://bestwriting.com/positioning-summary)). **Own one concept** per company or fund name; oversimplify the deck to the single idea they repeat in IC or partner meeting. **Be first** in a narrow category (or create one with a clear “not the old way” reference); do **not** attack the category leader head-on—reframe or flank. **Same core story** across rounds and fund vintages; new strategies may need a **new name/vehicle** (no line extension). **LP fund strategy** and **M&A story** use the same rules: one position, consistent for re-ups and buyer conversations. **Outreach and deck copy (Schwartz, *Breakthrough Advertising*):** **channel existing desire**—research what the counterparty already wants, then point your offer at it ([notes](https://valchanova.me/breakthrough-advertising-copywriting-book-review/)). **Match awareness:** cold → problem/desire first; warm but hesitant → new proof or mechanism; ready to commit → terms plus real deadline. Slide titles and **subject lines** lead with outcome/desire; features and data prove below. In crowded markets, show a **new mechanism**; in jaded ones (e.g. generic funds), lead with **who you serve**. **Editorial, candid updates**—state limits and who the round is not for—boost credibility (Schwartz). ### 5 — Real momentum and competition Counterparties delay without urgency. Every update reflects **verified** motion: - Real meeting density and **parallel** processes (never fabricate term sheets, LOIs, or commits). - Explicit timeline to decision; **time is the enemy** of every process. - Back urgency with hustle so it becomes self-fulfilling. - While building parallel interest, continue **qualifying** new names; do not skip straight to pitch for counterparties still below fit/capacity threshold (Module 7). - **Delay kills deals:** answer diligence quickly and push toward decision dates (after Ringer, *Winning Through Intimidation*). - **Manufactured scarcity** often fails with angels; anchor urgency in **verified** meetings, term sheets, and commits (Calacanis, *Angel*). Apparent “heat” is usually **built deliberately** through outreach and narrative work (Thiel, *Zero to One*). - **Consensus + scarcity (ethical):** credible peer commits and a **real** hard cap or limited allocation compound momentum—use only when true (Kim, *Five Laws*). - **Prize frame:** you qualify counterparties; they are not doing you a favor—neediness and validation-seeking kill deals (Klaff). Pair with a full pipeline so walk-away is credible (Klaff; Ringer). ### 6 — Get the lead / anchor Until a **lead investor**, **anchor LP**, or **preferred bidder path** is clear, there is no deal. 1. Prioritize largest / most engaged candidates. 2. Ask what it takes to reach an offer: size, governance, timeline, key terms. 3. Run **parallel** lead conversations; polite pressure to move without burning bridges. 4. Keep follower / secondary LP / alternate bidder details **confidential** from lead candidates until lead is locked (Skilzzz comment-thread guidance). 5. **Startup:** explain **valuation with metrics**; once a credible **lead** sets price, followers often decide on company quality (Calacanis, *Angel*). **Advisors (optional, startup-heavy):** Few excellent advisors ≈ **10×** average advisor value (source article); expect advisors to **invest** when advising a company round. ### 7 — Second offer (term sheet / LOI / anchor) When the **first** term sheet, LOI, or soft anchor arrives: 1. Move **immediately** for a **second** from the next-best candidates. 2. Single offer without competition → weak terms, re-trades, or deal death. 3. **Late serious interest** can appear when a deal is nearly done—use real competition ethically; do not drop signed progress to chase an unverified better rumor (Ringer, *Winning Through Intimidation*). 4. Short credible urgency (adapt; approver approves before send): > Hey \[Name\] — checking in on \[Entity\]. Things are heating up with a couple of other parties and we could move quickly from here. Wanted to see where your head is at. Call me back when you can. 5. On terms, **do not split the difference** by default—middle outcomes often satisfy neither side. Prefer **anchoring**, **precise figures**, and **loss aversion** framing over meeting halfway on valuation or price (Voss, *Never Split the Difference*). ### 8 — Herd, anti-collusion, sprint to close **Herd:** Signal to interested parties that timing is near; nail **follower** amounts early so lead sees aggregate demand. **Anti-collusion:** After lead is locked, hold the line on **material economics**; do not let doc delay become a terms auction. **Sprint:** Until cash wired (or signed docs + funds): treat close as **fragile** (~50/50 mindset, source article); **never stop selling** through signing and wire. Set and honor a **close deadline** where the track allows—a **time frame** only when true (Klaff). Use **intrigue** (short tension story) before cold data dumps in final meetings (Klaff). Expect **legal markups and late diligence surprises**; stay cooperative and warn all parties in advance (Ringer). **One team** should run buyer/investor messaging—avoid uncontrolled side channels (Ringer). Map **people behind the table** (IC, partners, legal, co-founders) and win them before celebrating (Voss). Treat deals as **hypotheses** until signed and funded—no false “done” signals (Voss). ### 9 — After the yes (all tracks) Once a term sheet, SAFE sign, anchor commit, or LOI is in motion, shift from selling to **execution**—still with human approval at every binding step (see guardrails). | Phase | Startup | LP fund | M&A | | --- | --- | --- | --- | | **Term sheet / LOI** | Compare sheets; model cap table (`references/cap-table-math.md`, `deal-terms.md`) | Soft circle → term sheet / side letters (`deal-terms.md`) | LOI economics before exclusivity (`deal-terms.md`; Mintz) | | **Diligence** | Data room (`due-diligence-checklists.md`) | ILPA DDQ + ODD (`due-diligence-checklists.md`) | Confirmatory DD + QoE (`due-diligence-checklists.md`; `ma-process.md`) | | **Definitive docs** | NVCA set / charter (`deal-terms.md`) | LPA + subs (`deal-terms.md`; closes in `fund-closing-and-compliance.md`) | Purchase agreement + schedules (`deal-terms.md`) | | **Close** | Wire + 409A refresh flags; Form D reminder | First/subsequent close + equalization (`fund-closing-and-compliance.md`) | Funds-flow memo + wire verification (guardrails) | | **Post-close** | Investor updates + board (`post-close.md`) | LP reporting + capital calls (`post-close.md`) | Integration handoff; earnout tracking | --- ## TheList — pipeline tracking One authoritative pipeline (sheet, CRM, or file—name it in reports). | Field | Purpose | | --- | --- | | `counterparty_id` | Name + firm | | `source` | Intro chain / event | | `track` | startup / lp_fund / m_and_a | | `stage` | See track-specific stages below | | `interest` | pass / watch / interested / lead-candidate / lead / follower / committed | | `indicative_amount_usd` | Range or commit | | `last_touch` | Date + channel | | `next_action` | Owner + date | | `referrals_out` | Intros promised or made | | `confidential_notes` | Terms discussed; not forwarded | | `blockers` | Diligence, legal, fit | **Default stages (adapt labels):** `target` → `intro_scheduled` → `first_meeting` → `diligence` → `term_sheet_or_loi` → `docs_in_progress` → `committed` → `closed` → `post_close` → `pass`. **Weekly hygiene:** No row without `next_action` within 14 days unless `pass` or `parked_until`. ## Outreach cadence (defaults) Tailor **length and lead** to awareness (Schwartz): short note when warm and ready; longer narrative when cold or skeptical. | Situation | Cadence | | --- | --- | | After first meeting, warm interest | **48 hours**—thanks, one data point, next step | | Soft / “thinking” | **5–7 business days** with a **new momentum fact** | | Lead candidate post-diligence | **Daily** during term-sheet / LOI window | | After first term sheet / LOI | **Same day** second-offer outreach (phone when approver okays) | | Pass | Log reason; ask for **one referral** | All outbound requires **approver** sign-off unless a pre-approved template exists for that process. ## Reporting (all tracks) **Fundraising status** (weekly or on request; immediate on term sheet / LOI / anchor): 1. **Bottom line:** Track, phase, lead/anchor status, $ committed vs target, close confidence + one reason. 2. **Funnel:** Counts by stage vs track benchmarks (startup funnel math in track module). 3. **Pipeline top 10:** Name, stage, amount, next action, date. 4. **Verified momentum only**—no fabrication. 5. **Decisions for approver:** Term comparisons, allocation, data-room release, travel, cap table / fund terms. 6. **Referrals** owed / received; **red flags**; **next 7 days** calendar and drafts awaiting approval. 7. **Startup / angel rounds:** **monthly investor updates**—cash, burn, runway, wins, losses, specific asks (after Calacanis, *Angel*). Use authoritative finance sources for runway, revenue, and fund metrics. ## Agent procedure 1. Confirm **track**, entity, instrument, target size, timeline, thought partner. 2. Load or create TheList; dedupe. 3. Gap analysis vs **shared core** + active **track module**; name bottleneck (usually lead, second offer, or single-buyer risk). 4. Weekly target list and intro asks (**drafts only**). 5. Execute **approved** outreach; log touches; ABC after every meeting within 24h. 6. Term-sheet / LOI / anchor events → second-offer sprint + same-day approver brief. 7. **After the yes:** term sheet/LOI review checklist → diligence plan + data room (`references/due-diligence-checklists.md`) → doc timeline with **lawyer review** / **CPA review** flags → close checklist (wires per guardrails; fund: `references/fund-closing-and-compliance.md`) → post-close cadence (`references/post-close.md`). For startup rounds, run pro forma math against `references/cap-table-math.md` before sharing any external cap table. 8. Report per template above. ## Red flags (cross-track) | Flag | Action | | --- | --- | | No lead after many first meetings | Revisit narrative, universe fit, geography/hub plan | | Single offer, slow second | Emergency second-offer sprint; approver decides walk | | Terms drifting during docs | Anti-collusion line; counsel | | Side terms via back channel | Document; no oral side deals | | Endless diligence without offer | Deadline; deprioritize | | **Optional — Web3:** Wallet wire / token guarantees | Stop; legal | --- ## Track — Startup seed / venture **Scope:** Angels, pre-seed/seed, SAFEs and priced rounds, lead + followers. Growth-stage VC process design only when explicitly requested. ### Funnel math and outreach mix | Lesson | Use | Source | | --- | --- | --- | | ~**150** touches → ~**50** first meetings → ~**20** second → ~**2** term sheets | Size TheList and weekly targets | [@twistartups](https://x.com/twistartups/status/2062293805303582751) | | **120+** serious investor conversations before oversubscription (pre-seed example) | Effort expectations | [@andrew__rea](https://x.com/andrew__rea/status/1787883910652993578) | | Parallel **warm intros** and **approved cold** outbound | Top of funnel | [@adcock_brett](https://x.com/adcock_brett/status/1812672042564776073) | | Study high-converting cold email (one cited **70.8%** meeting rate—anecdotal) | Email drafts | [@adcock_brett](https://x.com/adcock_brett/status/1812673093086986358) | ### Narrative, traction, onion theory | Lesson | Use | Source | | --- | --- | --- | | Seed answers: **team works together**, **can build**, **will anyone use it** | Pitch + FAQ | [@rdominguezibar](https://x.com/rdominguezibar/status/2095600466415825160) | | Weak **mid** traction harder than **zero** (vision) or **strong** (proof)—reposition honestly | Deck emphasis | [@colorkevin](https://x.com/colorkevin/status/2050606246148137422) | | **Onion Theory of Risk:** each round funds removal of specific risks for the *next* round—past milestones, risks peeled, this $ , next milestones, risks ahead | Round size, deck | [@StartupArchive_](https://x.com/StartupArchive_/status/1971904952210493778) | | Large raise + **capital discipline:** S&M payback **<1.5y**, milestone hiring, **Rule of 40**, burn multiple **<2**, quarterly reporting | Diligence updates | [@immad](https://x.com/immad/status/2091749711095226814) | | PG **How to Raise Money** (essay link in bookmark) | Deep read | [@benln](https://x.com/benln/status/1832803400582377547) | | Skilzzz pointer | Primary source | [@travisk](https://x.com/travisk/status/2118001818227642520) | ### Instruments Detail: `references/deal-terms.md`; pro forma: `references/cap-table-math.md`. | Instrument | Agent should | | --- | --- | | **SAFE** | Track cap, discount, MFN, pro rata side letter; flag side letters; **lawyer review** before signature. | | **Priced seed** | Pre-money, option pool shuffle, board, protective provisions; compare second term sheet; **CPA review** for 409A. | ### After the yes — startup 1. **Term sheet** — compare economics and control; model dilution (`cap-table-math.md`); human approves before sign. 2. **Diligence** — stage the data room (`due-diligence-checklists.md`); log access. 3. **Docs** — NVCA-style set (`deal-terms.md`); counsel markups; no oral side deals. 4. **Close** — charter amendments, wire instructions verified per guardrails; Form D reminder. 5. **Post-close** — monthly/quarterly updates; board rhythm (`post-close.md`). ### Startup pitch & data-room checklist - [ ] 5–10 min narrative; top-20 FAQ; **three seed answers** ([@rdominguezibar](https://x.com/rdominguezibar/status/2095600466415825160)) - [ ] **Angel four pillars:** what you build, why you, why now, unfair advantage (Calacanis, *Angel*); **Thiel seven screens:** engineering, timing, monopoly path, people, distribution, durability, secret (*Zero to One*) - [ ] **One owned concept** + oversimplified headline; category creation or flank vs leader—not head-on “we’re better” (Positioning); contrarian/small-market story aligned with Thiel where both apply - [ ] **Schwartz copy:** desire-led titles; awareness-matched cold vs warm emails; mechanism or identification if market is crowded/jaded - [ ] **Onion slide** ([@StartupArchive_](https://x.com/StartupArchive_/status/1971904952210493778)); traction framing ([@colorkevin](https://x.com/colorkevin/status/2050606246148137422)); prefer **product and traction before** heavy fundraising (Calacanis) - [ ] Short answers on competition, revenue, pricing, CAC, top failure modes (Calacanis); **distribution** and unit economics (Thiel) - [ ] Clear ask (size, instrument, timeline); deck **after** interest - [ ] Data room: cap table pro forma, corp docs, contracts, IP, financials, metrics; access log - [ ] **Optional — Web3:** token cap table / warrant summary only with legal blessing ### Optional — Web3 (startup track) | Topic | Agent should | | --- | --- | | **Token warrant / side letter** | Separate equity terms from token economics; log triggers and lockups; legal review. | | **SAFT / token sale** | Securities-sensitive; counsel only. | | **Investor scam vetting** | Verify identity and track record; red-flag guaranteed returns, personal-wallet wires, pressure; pause before data room. | --- ## Track — Fund raising from LPs **Scope:** GP fundraising (Fund I through n)—anchors, institutional and individual LPs, fund deck, LP diligence, closing a fund. *General knowledge* fund-structure notes below are labeled as such; operational numbers come from sources. Deeper paraphrases: `references/article-lessons.md` (Kim; St-Martin & Alden on Vessel—**vendor content**, use funnel ideas only). ### Pipeline math and GTM funnel **Size the top of funnel (Kim):** target fund size ≈ **pipeline × conversion × average check**. Example at ~10–20% conversion: a **$300M** fund with **~$10M** average checks implies on the order of **300–400** first meetings—back into weekly meeting targets and TheList size. **Bow-tie stages (St-Martin & Alden):** awareness → education → selection → onboarding → support → grow → retain → delight. Log **volume, conversion, and time** per stage in CRM. **Diagnose:** many meetings / few commits → wrong **Ideal LP Profile (ILP)** or weak thesis; good closes / weak re-ups → LP servicing; long cycles → segment vs timeline mismatch. **ILP:** define who fits (type, check, decision speed) and who is **explicitly out**. **CRM discipline:** every ILP-fit LP loaded, every touch logged—knowledge only in partners’ heads is operational risk (St-Martin & Alden). **Always-on pipeline:** start **1–3+ years** before a large institutional close; do not rely on episodic raise campaigns alone (St-Martin & Alden). **Re-up and delight existing LPs first**—easiest capital; ask satisfied LPs for **2–3 intros** to the next fund before cold top-of-funnel (St-Martin & Alden; Kim on marginal cost of the last dollar). **Kim — size, speed, terms:** pick **two** of three; simplify story complexity (track record + differentiation ÷ tangled narrative). ### Anchor and first-close LPs Most LPs avoid **Fund I**; target specialists who anchor emerging managers ([@uselegion](https://x.com/uselegion/status/2102060851620458860)). The bookmark lists **12 anchor-oriented LPs** (names and handles in compilation—use full post for detail): 1. @CendanaCapital · 2. @screendoorvc · 3. @IndustryVC · 4. @close_first · 5. @RecastCapital · 6. @lo_toney (Plexo) · 7. @Beezer232 · 8. @cdouvos · 9. @Samirkaji · 10. @isomercapital · 11. @TrueBridgeCP · 12. @FairviewCapital **Process (general knowledge, minimal):** First **legal close** often requires one or more **anchors** at meaningful ticket size; subsequent closes add LPs until final close or hard cap. Track each LP’s **subscription doc** status, capital call schedule, and side-letter requests separately in TheList (`track: lp_fund`). **Sequence (Kim):** many **family offices** and agile allocators can back a contrarian emerging manager early; **committee-driven institutions** need consensus. Win **one respected institutional anchor** to turn a contrarian bet into a committee-safe story. First-meeting qualify: decider, influencers, intermediation, IC packet, approval duration (St-Martin & Alden). ### Thesis, track record, and fund deck - **Investment thesis:** strategy, stage, geography, portfolio construction, differentiation—what the GP will *not* do matters as much as what they will. **One position** for the fund brand; do not line-extend unrelated strategies under one name (Ries & Trout, *Positioning*). - **Track record:** prior deals, realized/unrealized marks, attribution, team bios; be precise about what is **GP** vs **prior employer** experience. - **Example fund deck:** [@NWischoff](https://x.com/NWischoff/status/1840037435675234677) shares a **$50M Fund III** deck—inspiration for **structure and sections**, not copy-paste content. ### Building a VC firm (deep read) [@hosseeb](https://x.com/hosseeb/status/2026747999939080217) — X Article on **Dragonfly / building a VC firm**. **Not summarized in this skill** (body not in compilation). **Fetch the article** before citing operational detail: [Article link](https://x.com/i/article/2026744472567189504). ### LP diligence and fund terms basics **LP diligence (typical asks—general knowledge):** AML/KYC, accredited or qualified investor status, references, back-channel on GP, legal structure, conflicts, fee/offering memo, portfolio company cap tables for GP stakes. **Fund terms (general knowledge—confirm with counsel and market):** | Term | Agent should | | --- | --- | | **Management fee** | Usually % of committed or invested capital during investment period; step-down post-investment period—log proposed basis. | | **Carried interest** | GP share of profits above hurdle; note catch-up and clawback language flags for counsel. | | **GP commit** | Minimum GP co-invest—track % of fund. | | **Fund size / hard cap** | Target raise vs maximum; pacing to final close. | | **LPAC / reporting** | Cadence of LP reports and audit requirements—track in checklist. | Apply **shared core** ABC with LPs (ticket size, timeline to sub docs, reference calls). **Second anchor / second institutional** parallel to second term sheet. **Power law:** most portfolio outcomes are zeros; a few names return the fund—present **concentrated** strategy and outcome scale LPs expect (after Thiel, *Zero to One*; Calacanis, *Angel*). ### LP track checklist - [ ] **ILP** written; TheList sized from **pipeline × conversion × check** (Kim) - [ ] CRM: all ILP names, all touches; funnel metrics by stage (St-Martin & Alden) - [ ] **Re-ups** and LP servicing before heavy cold outreach; intro asks to happy LPs - [ ] **Evergreen** outreach to long-cycle institutions; segment high-touch vs light-touch - [ ] Fund deck v1 + data room (PPM/offering memo only with legal); story complexity minimized (Kim) - [ ] FAQ: thesis, team, Fund I vs prior funds, conflicts, fees, portfolio examples - [ ] **Family-office / agile allocator** path + **institutional anchor** plan (Kim) - [ ] Subscription pipeline: soft circle → sub docs → capital call calendar; stop when marginal dollar cost exceeds benefit (Kim) ### After the yes — LP fund 1. **Term sheet / side letters** — fees, carry, key person, GP commit (`deal-terms.md`); **lawyer review**. 2. **Diligence** — pre-fill ILPA DDQ; ODD prep (`due-diligence-checklists.md`). 3. **Docs** — LPA, PPM, subscription agreements (`deal-terms.md`). 4. **Close** — first/subsequent closes, equalization, 506(b) vs 506(c), Form D (`fund-closing-and-compliance.md`); verify accredited/QP. 5. **Post-close** — ILPA reporting template, capital call notices, LPAC (`post-close.md`). --- ## Track — Selling the company / M&A **Scope:** Lessons from **Fundraising** YouTube playlist (POTOMAC M&A); paraphrased summaries in `references/youtube-fundraising-playlist/`. Company sale, majority recap, strategic or PE exit—not legal/financial execution without sell-side counsel and M&A advisor. Apply **shared core** phases 5–8 (momentum, lead bidder, second LOI, deadline close) at scale. Strong exits are often **bought, not sold**—run a process so multiple acquirers compete (Calacanis, *Angel*). **Sell from strength** with a credible forward plan; exhausted sellers get mispriced (Thiel, *Zero to One*). **M&A narrative:** one consistent strategic position for management story and CIM—buyer desire (growth, gap fill) first, then proof (Schwartz); avoid attacking the obvious strategic leader head-on (Positioning). ### Sell-side process design | Lesson | Action | Source | | --- | --- | --- | | **No price tag** — value negotiated | Realistic vs aspirational range before outreach; no single-buyer price discovery | [Sell-side, ~02:03](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=123s) | | **Leverage stack** | Conceal forced-sale pressure; surface verified buyer urgency | [~03:05](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=185s), [~05:09](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=309s) | | **Information war** | Learn buyer motivations; mgmt meetings = listen | [~07:13](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=433s), [~44:58](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=2698s) | | **Emotional detachment** | Advisor negotiates process; founder credible in mgmt sessions | [~09:15](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=555s) | | **Credibility / competition from day one** | Multi-party process upfront | [~11:19](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=679s), [~19:28](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=1168s) | | **Negotiate process + substance** | NDA → CIM/teaser → IOI → mgmt → LOI → exclusivity calendar | [~15:24](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=924s) | | **Avoid one-buyer trap** | Parallel serious parties | [~27:41](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=1661s), [~1:18:38](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=4718s) | | **Modified auction** | Curated buyer universe; tier A/B | [~29:42](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=1782s) | | **CIM + process letter** | One data set; parallel IOI deadline | [~31:43](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=1903s), [~33:45](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=2025s) | | **Serial bids hurt sellers** | Process letter beats reactive serial negotiation | [~35:47](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=2147s) | | **Iterative rounds** | IOI → pay-to-play mgmt → batched Q&A → revised LOIs | [~39:52](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=2392s), [~55:13](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=3313s) | | **Management meetings** | Charm + damage mitigation; extract synergy data | [~51:06](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=3066s) | | **Don’t fall in love** with one acquirer | Compare money and terms until LOI | [~59:17](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=3557s) | | **LOI / exclusivity** | Negotiate escrow, reps, caps, no-shop **before** exclusivity | [~1:02:21](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=3741s) | | **Acceptance time** | Slow re-trades post-LOI; finite exclusivity | [~1:11:31](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=4291s), [~1:17:37](https://www.youtube.com/watch?v=8jBQ3jZnNvY&t=4657s) | ### Buy-side lens (defensive) | Lesson | Implication | Source | | --- | --- | --- | | FMV vs strategic value | Independent valuation range; reject first anchor as “market” | [Buy-side, ~07:04](https://www.youtube.com/watch?v=IG7LanmQny4&t=424s) | | Buyer anchors low; rarely asks seller price first | Redirect to **process** | [~23:22](https://www.youtube.com/watch?v=IG7LanmQny4&t=1402s), [~39:41](https://www.youtube.com/watch?v=IG7LanmQny4&t=2381s) | | Conservative standalone model | Normalized financials; add-back disputes | [~09:07](https://www.youtube.com/watch?v=IG7LanmQny4&t=547s) | | Synergy narrative | Standalone strength; compete on synergy in bids | [~17:16](https://www.youtube.com/watch?v=IG7LanmQny4&t=1036s) | | Fast teaser / slow deep diligence; **60-day exclusivity** common | Competitive LOIs before exclusivity | [~28:29](https://www.youtube.com/watch?v=IG7LanmQny4&t=1709s), [~35:38](https://www.youtube.com/watch?v=IG7LanmQny4&t=2138s) | | Contingencies / clawbacks | Negotiate at LOI | [~25:25](https://www.youtube.com/watch?v=IG7LanmQny4&t=1525s) | ### M&A checklist - [ ] Advisor + legal; valuation memo (realistic vs aspirational) - [ ] Buyer universe 30–50+ when scale warrants; teaser/CIM/NDA - [ ] Process letter with parallel IOI/LOI deadlines - [ ] Tracker: IOI → mgmt → LOI → exclusivity → diligence → close - [ ] No single-buyer dependency; second LOI sprint when first LOI lands ### After the yes — M&A 1. **LOI** — price structure, WC peg, escrow, reps, RWI, earnout before exclusivity (`deal-terms.md`; `ma-process.md`). 2. **Diligence** — confirmatory workstreams; sell-side QoE if not done (`due-diligence-checklists.md`). 3. **Docs** — purchase agreement, disclosure schedules, funds flow (`deal-terms.md`); **lawyer review**. 4. **Close** — wire verification (guardrails); signing vs closing timeline (`ma-process.md`). 5. **Post-close** — earnout metrics tracking; integration comms (`post-close.md`). --- ## Output standard - Lead with **bottom line** and **decisions for approver**. - Label **track** and separate **shared core**, **source attributions**, **book** (`references/book-lessons.md`) and **article** (`references/article-lessons.md`) paraphrases, **Straight Line Persuasion Module 7 (paraphrase)**, **general knowledge**, and **Optional — Web3**. - Cite URLs for philosophy; cite pipeline rows for operational facts. ## Verification checklist - [ ] Active track identified; TheList has stages, amounts, next actions - [ ] ABC captured from last meeting on non-pass rows - [ ] Urgency claims verified; second-offer plan explicit once first offer exists - [ ] No outbound without approval (unless pre-authorized template) - [ ] @hosseeb article not cited beyond link unless fetched in full - [ ] M&A rows cite YouTube links and ~timestamps - [ ] Official-form paraphrases match current URLs in `references/` (refresh after YC/NVCA/ILPA updates)