Guide · Capital
Raising capital.
Round structure is easy to describe and difficult to execute. This guide covers the operational reality — sequencing, audience selection, and the preparation that precedes the first meeting.
01 · Round structure
Pre-seed, seed, Series A.
Pre-seed rounds are typically raised on SAFEs from angels and pre-seed funds — small cheques, minimal diligence, priced by future conversion cap. Seed rounds may be SAFE-priced or priced equity, depending on lead investor preference. Series A is a priced equity round with a lead investor, formal term sheet, and full diligence.
02 · Audience
Match the investor to the stage.
Pre-seed audiences are angels, operator angels, and dedicated pre-seed funds. Seed audiences are seed funds, occasionally Series A funds writing early cheques. Series A audiences are the ~200 institutional Series A funds actively deploying.
Pitching a Series A fund at pre-seed traction rarely produces conviction and often produces a soft pass that persists into later rounds.
03 · Sequencing
Cold, warm, lead.
Run three or four early meetings with less-preferred investors first — call them practice. Move to warm intros in weeks two and three. Approach lead-candidate investors in weeks three and four, when the pitch is tight and diligence questions are anticipated.
04 · Term sheet
Read every clause.
Beyond valuation and pool: liquidation preference (1x non-participating is standard), board composition, protective provisions, information rights, and anti-dilution formulation. Weak terms compound.
05 · Close
Diligence, docs, wire.
Once a term sheet is signed, diligence intensifies. Legal work runs in parallel — stock purchase agreement, investor rights agreement, voting agreement, right of first refusal. Time from term sheet to wire is typically four to eight weeks.
Frequently asked
Common questions.
How much should I raise?
Enough to reach the next credible milestone with a margin of safety. Historical rule: 18 to 24 months of runway to hit metrics that support the next round.
What valuation should I ask for?
The valuation is set by the lead investor's conviction relative to comparables. Anchoring too high signals inexperience; anchoring too low leaves optionality on the table.
Do I need a lawyer?
For any priced round, yes — startup-experienced counsel, not general commercial counsel. Reviewing a Series A term sheet without specialised counsel is not a defensible cost saving.
Operational coordination, engaged.
Brightincorp coordinates the operational sequence covered in this guide as part of every engagement — so the work is done, not merely described.