Venture capital is a powerful tool for entrepreneurshipβone that can help overcome some of the numerous challenges of starting and scaling a new business. But the path of deciding if, when, and how to raise early-stage venture capital is navigated most easily by those with past experience, insider knowledge, and the right connections. Itβs notoriously easy for founders to take wrong turns in their path to successfully finance a company.
The lead author of this Guide, Andy Sparks, raised $17M for his last startupβhaving failed to secure any funding for his first company. Heβd moved to Silicon Valley without a network, and spent the next four years piecing together how fundraising works, from hundreds of conversations, countless hours of internet searches, and multiple $900 sessions with lawyers.
Learning how to fundraise doesnβt have to be so painfulβor so costly. Anyone aspiring to build a company should have access to the experiences and knowledge of those who have gone before. Weβve pulled together 40 expertsβlawyers, founders, and investorsβto build a practical Guide that helps founders approach the process with confidence.
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βDefinitionβ Product-market fit (product/market fit or PMF) refers to the notion that there is a point at which a given market responds so positively to a companyβs product that the product βfitsβ the marketβs needs. A precise point at which βfitβ has been achieved does not exist. Instead, product-market fit represents a continuum of traction that ranges from absolute clarity that a company does not have product-market fit to maybe they have product-market fit to experts disagree whether they have product-market fit all the way to itβs beyond all doubt they have product-market fit.
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