A Venture Finance Academy Case Study — Part 1
Welcome to the first part of the case study of how SaaS startup SanityDesk raised US$1.35M of pre-seed funding and the sources it used to do this. It’s a classic story of doing the necessary strategic work before setting out to raise money. If you missed the introduction part about this case study, please click here to read it.
But first of all, what exactly is venture finance? Well, it shouldn’t be confused with venture capital. In fact, venture capital is just one element of venture finance — and a relatively small part, too. For every 1,000 companies in USA, only 3 raise venture capital that is just 0.3% of all companies actually receive venture capital.
The term venture finance conflates a number of different types and sources of capital. It’s like if a tapas bar specialized in serving venture finance, it would have a number of different options on the menu and you’d choose what was best to help you launch, finance and grow your venture. It could be one dish or a combination.
A spicy crowdfunding dish? A salad of angel or superangel? A side order of government grants? A barbecue corporate VC?
In the case of Sam Cook, co-founder and CEO of SaaS startup SanityDesk, he chose several different types and sources to raise his $1.35M (and counting) pre-seed round. In Lesson 1 of this case study, we will explore the 12 most common forms of venture finance, and explain why and where and when they are most likely accessed.
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