A startup guide

to fundraising
How to use private market data to perfect
your pitch to investors
Secure funding with a data-driven pitch
Successfully pitching investors who will provide you with the capital, guidance, connections and
expertise your company needs to grow is critical to your success. However, this is easier said
than done. There are hundreds of thousands of investors out there receiving pitches from even
more startups. You need to set your company apart and clearly demonstrate to them why your
company is more worthy of their investment, how you beat the competition and how they’ll
generate a profit from investing in your business.

In this guide, you’ll see how you can use data to:

1. Connect with the right investors for your company

2. Be in the driver’s seat as you negotiate

3. Demonstrate your industry expertise to potential investors

4. Show investors how they’ll profit from an investment in your company

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Connect with the right investors
There are hundreds of thousands of investors out there, but only a handful
of them will be right for your business. You need to figure out which of these
investors are most likely to invest in your company, and how to tailor your
pitch to them.

Find the right investors

Create a shortlist of investors based on location, industry, deal type and
investment preferences.

Identify lead partners on deals

Learn about key individuals at investment firms who will be vetting your
company, and create a pitch that speaks to them.

Research previous investments

Use insight into past investments to tell investors how your company will fit
into their portfolio.

Assess investors’ cash on hand

See an investor’s cash on hand (“dry powder”) to ensure they’ll be able to
meet your capital requirements.

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Be in the driver’s seat as
you negotiate
Once you’ve identified the right investors, you need to arm your
pitch with data. With information on comparable companies and
deals, you’ll be in the driver’s seat as you negotiate.

Analyze pre- and post-money valuations

See exactly how investors are evaluating companies like yours to
determine your own company’s value. Use cap tables and deal
terms to better negotiate your term sheet.

Calculate a fair equity stake

See the median percentage acquired in your industry to propose
an appropriate equity structure to investors.

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Demonstrate your
industry expertise
Investors are financial experts in your industry. To make sure
you’re on an even footing when pitching, you need to do your
homework and clearly demonstrate that you know your market
and your competition.

Visualize industry trends

Use charts and analytics to show investors how you’re
responding to trends in your industry.

Track competitors
Set alerts to stay on top of the competition and tell investors
how you’re responding to competitor moves.

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Speak to an evolving
market landscape
Actively uncover market participants in your sector and
beyond, and better understand how to define your current
market landscape.

Effectively measure your market size

Analyze market size estimates to inform and validate strategic
decisions and potential earnings at every stage of your
company’s lifecycle.

Create presentation-ready market maps

Utilize PitchBook’s world-class private market data and
analyst expertise to position and measure your competitive
environment with our actionable, insight-rich market maps.

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Show investors how they’ll
make a profit
An exit may seem a long way away, but it’s top-of-mind for
investors. You need to show them how they can make a profit from
investing in your company via a well-planned exit. Painting the full
picture of your company’s lifecycle—from initial investment to
exit—strengthens your case.

Identify possible buyers

Use dry powder, previous investments or investment preferences
to create a list of possible buyers.

Analyze exit scenarios in your industry

See which exit types are most common in your industry, and
propose a scenario to your investors.

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Perfecting your pitch checklist
Connect with the right investors Be in the driver’s seat as you negotiate Demonstrate your industry expertise Show investors how they’ll profit

Find the right investors by looking at: Analyze pre-money valuations for Visualize industry trends Identify possible buyers, looking at:
comparable companies
• Location Set alerts to track competitors • Dry powder
• Industry Calculate a fair equity stake using • Previous investments
industry standards
• Deal type • Investment preferences
Speak to an evolving market landscape
• Investment preferences
Analyze exit scenarios in your
Accurately measure your market size
Learn about lead partners industry
Create presentation-ready market
Research previous investments maps
by looking at:

• Amount raised
• Pre-money valuations

• Post-money valuations

Assess cash on hand (“dry powder”)

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Amplify your pitch with
tailored data and charts
Organize and build an informed pitch deck using sector-specific
data packs, featuring market intel and visualized data and charts
that are available to you from the get-go.

Speak to activity in your sector

Receive access to a set of industry-specific charts that can be
further customized, to deliver immediate interpretation to series-
specific investment activity.

Show up with confidence on Day One

Arm yourself with presentation-ready data visualizations that
include deal terms (seed, Series A, etc.), stock and cap tables,
share dilution, venture capital deal activity and exits,
redemption rights, board seats and top investors.

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Trusted by startups across the private market

Don Perugini
“PitchBook helped us target suitable investors for our Series A raise.” Co-Founder and Chief Strategy
Officer Presagen

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Our data: Who and what you can research with PitchBook
Companies Deals Investors Funds

What we track Key data points What we track Key data points What we track Key data points What we track Key data points
Pre-venture Financing history Angel & venture Deal size & multiples Angels AUM Buyout, growth & Investments
companies capital investments venture capital funds
Cap table history Pre- & post-money Accelerators & Dry powder Fund size & target
Venture capital- Private equity valuations incubators Mezzanine &
Financials Investments, Performance (IRR)
backed investments & debt funds
Series terms Venture capital firms acquisitions & exits
companies Filings buyouts Cash flow multiples
Infrastructure funds
Stock information Corporate venture Fund information & (DPI, RVPI, TVPI)
Private equity-backed Executives & Mergers &
capital firms performance Real estate funds
companies board members acquisitions Investors & lenders Dry powder
Private equity firms Co-investors Funds of funds
Mature private Investors IPOs & PIPEs Advisors Benchmark
companies Strategic acquirers Team & lead partners Energy funds
Similar companies & Bankruptcies Lead partners Limited partners &
on deals
Public companies competitors +15 other +20 other fund types commitments
Secondary
(with fundamentals, investor types Limited partners
Social followers & transactions Investment
analyst reports and
consensus estimates) web traffic Investment preferences
+15 other deal types
preferences

Limited Partners Advisors Professionals Debt & Lenders

What we track Key data points What we track Key data points What we track Key data points What we track Key data points
Pensions Mandates Investment banks Deals & clients C-level executives Affiliated deals & Last month of PE Lending preferences
funds Financing
Foundations Allocations Law firms Industry expertise Founders Debt facilities
Current & Maturity date
Family offices Commitments Auditors Regional focus Partners Loan types
past positions approaching
Endowments Returns Lenders League table ranking Managing directors Debt amount per
Board seats Buyout deals
round
+20 other limited Direct investments Placement agents Team & lead partners Corporate
Industry expertise Traditional lenders
partner types on deals development officers Maturity date
Investment Valuation firms
Biography Private debt backed
preferences Affiliates & Investment & Rate types
+15 other companies
subsidiaries advisory professionals Education
Team advisor types Spread reference
Refinancing
Contact information
opportunities Spread/interest rate
Who we are
In 2007, PitchBook Founder and CEO John Gabbert knew that his idea for
an actionable, extensive database for private equity-focused intelligence
was worth pursuing. He and seven others set up shop in a 200-square-
foot, windowless office, and the rest is PitchBook history.

Since those early days, PitchBook has expanded its coverage areas to
include the entirety of the public and private markets. We’ve added
thousands of datasets and millions of individual insights to the platform,
and we’ve pioneered new features and products that surface the
information our clients need to win. We look at every day as a new
opportunity to meet and exceed our customers’ expectations, through
helping them make informed decisions that propel their firms forward.

Now part of Morningstar, PitchBook is headquartered in Seattle, London

and Hong Kong, with additional offices in New York and San Francisco.

John Gabbert, founder and CEO of

PitchBook, has more than 17 years
of experience building technology
for professionals who work in the
private markets.
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Learn more
To see a demo and learn more about PitchBook,
contact a PitchBook representative.

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