Venture capital is a powerful tool for entrepreneurshipโone 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. Itโs 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 startupโhaving failed to secure any funding for his first company. Heโd 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 doesnโt have to be so painfulโor so costly. Anyone aspiring to build a company should have access to the experiences and knowledge of those who have gone before. Weโve pulled together 40 expertsโlawyers, founders, and investorsโto build a practical Guide that helps founders approach the process with confidence.
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โDefinitionโ 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 companyโs product that the product โfitsโ the marketโs needs. A precise point at which โfitโ 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 itโs beyond all doubt they have product-market fit.
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