How to track the fundraising performance of your startup?
It doesn’t get measured, it doesn’t get improved, right? If you aren’t tracking your progress and performance then you can’t measure or even know where you are.
Measuring and tracking, in general, is so important as an entrepreneur and startup. Yet, while it sounds obvious that with fundraising being so critical of a factor for your business that it should be one of the top things tracked, many don’t.
Many entrepreneurs and startup founders are just rushing and doing and throwing things at the wall and trying to use their brawn and hustle instead of using their brains.
Don’t fumble the ball here. Your venture and getting funded in general relies a lot on metrics and tracking performance. Just imagine if you applied those same principles to your fundraising efforts. It could be far more effective, efficient, and profitable.
Tracking Your Fundraising Performance
Understanding how to track the fundraising performance is all about knowing what you are doing, and benchmarking that against what you need to do and can achieve. As well as seeing what you are performing well on, and where you need to step up your game and improve.
How To Track Your Fundraising Performance
There are a variety of tools to use to track your fundraising performance. It needs to be done. Just don’t let it become a time drain or distraction which takes away from your real goals and putting money in the bank.
You may want to use your Google Drive for easy collaboration and a real-time view of a specific spreadsheet for this part of your tracking. Existing project management software may also be useful, as well as for prompting action on these items among your team members.
Some of these metrics may also already be getting recorded in your CRM. Find an efficient way to import those to any other tools and reporting software you are using. Drop or add line items as you go. Reorder and reprioritize metrics as they prove helpful to what’s most important to you, or not.
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
The Basics Of Tracking Your Fundraising Journey
Some of the basic fundamentals that you should have on your dashboard and that your team members should be aware of include the following.
What Round Are You At
What rounds of funding have you raised already? What are you calling this round? Pre-Seed, Seed, Series A, B, C, or later? Or is it a bridge between rounds?
This can make a big difference in a lot of ways and your teams need to be on the same page with it.
Funds Raised In Previous Rounds
How much money have you brought in at each round so far? You may also want to add any debt financing that has been raised in addition to equity capital.
Valuation At Previous Rounds
What were your valuations at each of your previous rounds? You can include pre-money and post-money valuations when figuring out how to track the fundraising performance of your startup. This is important for avoiding a down round.
Returns On Dollars Raised
This is truly one of the most important metrics for founders to track. What has the return been on previous dollars raised?
What tangible benefits has your startup gleaned from the money raised last time? Ideally, this will be measured in real dollars and financial benefits. Though there may also certainly be soft returns or measurable benefits that may yet be monetized.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them