We raised more than USD 380K in three days for three of our portfolio startups, all using in-house software we did specially for our Demo Day.
How
At Platanus Ventures graduation event, we hosted a live Demo Day. Three startups from our first batch pitched to a selected group of 80 angel investors and fund partners.
After a 30-minute event, we hosted a 3-day Virtual Financing Round. We orchestrated all of this using software.
Startups simply decided how much money they wanted to raise and the minimum CAP which they were willing to accept. On the other hand, investors accepted and followed a set of non-negotiable rules:
- The only financing document accepted was a SAFE (CAP, no discount).
- If you submitted an order and got selected, you had to invest.
- If someone offered a better deal, you might lose your opportunity to invest.
Investors offered deals using our software with the conditions set by founders and our team. The only variables defined by them were how much they wanted to invest and at what CAP.
Results
It was an unexpected and amazing success.
The startups were able to raise more than USD 380K, not in months, but in three days. In the following weeks, they raised even more at the CAP set in the Virtual Round. They had leverage in their negotiations.
These results helped our companies to spend less time fundraising, and more time building and selling their products, instead of their shares.
It was also a great opportunity for new angel investors. The startups received more than 40 offers, with the majority coming from first-time investors. We allowed a fresh generation of angels to invest in startups.
I am confident it would have been impossible to raise USD 380K in an in-person setting. What made it possible was our software. Automation and the internet made scalable angel investment possible.
