Fundraising Guide: How to Raise Your Million (Pre-)Seed with VCs - with Chris Püllen from Naro

About this episode

Chris Püllen, co-founder of Naro, recently completed a successful Pre-Seed funding round. In this conversation, he walks through the complex fundraising process step by step, sharing practical insights that can help other founders successfully navigate their own funding rounds.

The Right Timing for Fundraising

A key aspect Chris emphasizes is timing. Not every startup is ready for a funding round at any given moment. The right timing depends on various factors: product development stage, market validation, and internal team structure.

Customer Feedback as Product Development Compass

At Naro, customer feedback played a crucial role in product development. Chris explains how important it is to recognize early when a product direction isn't working. The startup had to pivot their product while convincing both the team and existing angel investors of the new direction.

The challenge lies in efficiently collecting feedback and turning it into concrete product decisions without losing sight of the vision.

Building Networks: The Key to VC Contacts

A functioning network is often more crucial than the best pitch deck when fundraising. Chris highlights the importance of the founder community and explains how to really get VC contacts that convert.

The question isn't just how to contact VCs, but also how to identify the right investors for your company. Chris shares his experience on how he decides which investors are a good fit for Naro.

The Fundraising Process in Detail

Pitch Deck vs. Reality

How relevant is a pitch deck really? Chris provides honest insights into the role of presentation materials in the fundraising process and explains what actually convinces investors.

Cold Outreach or Warm Introductions?

The approach to VCs can be decisive. Chris explains which path Naro chose and why personal recommendations are often more effective than cold outreach.

Leveraging Momentum

Momentum plays an important role in fundraising. When investors show interest, it's crucial to quickly convert that interest into concrete commitments. Chris explains how to use this dynamic to your advantage.

Due Diligence from a Founder's Perspective

It's not just investors who scrutinize startups – founders should also closely examine their potential investors. Chris shares what he looked for when selecting investors and how important it is to find the right chemistry.

Properly Contextualizing Product Feedback from Investors

Investors love to give product feedback, but not every piece of advice is golden. Chris explains what founders should watch out for when getting feedback from investors and how to distinguish between valuable insights and well-meaning but inappropriate advice.

Lead VC or Business Angels First?

A strategic question that concerns many founders: Should you first win a lead VC or business angels for the round? Chris shares his perspective based on Naro's experience.

From Term Sheet to Notary

When the VC has signed the term sheet, the work isn't done yet. Chris explains how the process unfolds from the signed term sheet to visiting the notary and what founders should pay attention to during this phase.

Burn Management: After the Fundraising

The money is there – but how do you handle it properly? Chris emphasizes the importance of effective burn management and explains how clear goal orientation helps prevent "burning" the raised capital.

Legal Basics for Founders

Should founders have basic legal knowledge in their field? Chris shares his assessment and explains what knowledge is really necessary and where external help should be sought.

Conclusion

Fundraising is a complex process that goes far beyond simply raising money. Chris's experiences show that preparation, the right network, and strategic approach are crucial. At the same time, it's important to handle capital responsibly after a successful funding round and define clear goals.

For founders facing their first funding round, Chris's experience report offers valuable insights into the reality of the fundraising process.