Raising Your Institutional Round: Chapter 7
This is the 7th chapter of my upcoming book, “Move the Needle Anyway(s): Raising Your Institutional Round.” There are a total of 16 chapters. The book is currently with the publishers, however, I wanted to start sharing the content in a form of a series of blog posts so the startup ecosystem can benefit immediately. I hope you enjoy :)
Chapter 7: Write The Snippet
The snippet is a tight paragraph that synthesizes:
Market Opportunity
Traction
Problem
Product
Team
Think of your snippet as a mini, email-length version of your memo (250–350 words). The purpose of the snippet alongside the short-form deck is to help you frame the opportunity to investors so you can secure the first meeting with them. Having a snippet is very useful for several reasons:
First, most investors are reading things on the run—between meetings and commuting—so you want to have something that's easy to digest. Investors can read it on their mobile device and quickly decide if they are interested in engaging with you.
Second, your network (e.g., existing investors, advisors, and other founders) can correctly communicate your opportunity on your behalf as they interact with people in their networks. With a clear snippet, your network can help you generate excitement about getting a meeting with you and your company. Here is an example of a snippet that led directly to a successful fundraise (specific details have been omitted to respect confidentiality):
"Company X is a freight workflow platform for transportation companies to manage relationships, analyze capacity, and automate load bookings. Their team of former Uber/Facebook/Google engineers, ex-logistics professionals, and supply chain executives has partnered with over thirty of the largest public and private U.S. logistics firms to serve $3B+ of truckload spend digitally.
Traction— Over XX freight brokerage customers deploying their digital transformation strategies using Company X’s SaaS solutions;
XXX+ trucking company customers, XXX+ signing up on the waitlist per day
Combined segments generating $XXXK MRR growing at ~XX% MoM
Tech – Integrates artificial intelligence, IoT visibility, and API connectivity into seamless workflow process automation
Network Effects – Each brokerage customer adds their network of carriers, which has resulted in XXXK+ active trucking companies under a unified platform that drives inbound discovery for our premium carrier solutions
Market – A unified private network to efficiently execute digital contracts for the $800 billion freight industry
Model – Segment-based B2B SaaS subscription model for brokers and carriers
Fundraising – raising Series A.
Deck: [LINK]"