Brendan Baker, an MBA student at Oxford, created a phenomenal infographic (pdf) of our $1MM angel raise for AppMakr. Here's how to read it and what it means. Additionally, below is a 7 minute interview I did with Brendan going over the top points gleaned from the infographic.
Brendan followed our raise from before I even moved from DC to SF last summer. I made a few trips to SF as I began the raise process, and then moved to SF fulltime in July 2010. The raise was wrapped up by October 2010 (here's the party we had to celebrate!). The core of the raise happened over a 14 week period.
How to read the infographic:
- Chronologically, left to right, with dates at the top, starting in June and ending in October
- A beginning dot is an intro, then the resulting line is how long the intro took to play out
- Large circles are successful funds raiseed
- Brendan separated the intros into 3 groups, on the right-hand side: Timewasters, Old School and New School intros
Lessons learned from the infographic:
- I didn't realize this until looking at the data, but not a single intro where someone made a one-to-one introduction worked out. I call this the "Rule of 10" and it means "Only take intros from people willing to give you at least 10 introductions. Don't waste your time with someone who says 'I have an investor to introduce you to.' The sample set is too small to be statistically significant, so use the Rule of 10 at your own risk! But it is interesting that none of the one-to-one intros worked out.
- Timing is important: I tried to do the raise over the summer. Bad idea. Focus on spring, with fall being second-best. Avoid summer and holidays.
- Nail your message: We iterated on our message during the raise (not ideal). Watch the video for more details.
View the slideshare from the related blog on Brendan's website
Here's the video interview between me and Brendan:
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