Investors want founders who understand the financial reality of their business. Messy data, misunderstood metrics, or waiting until you\u2019re nearly out of cash to start fundraising can cost founders leverage, valuation, and even a term sheet.<\/p>\n
In this episode of Build Mode (https:\/\/techcrunch.com\/podcasts\/build-mode\/<\/a>) , host Isabelle Johannesen sits down with Sasha Orloff, founder and CEO of Puzzle and Startup Battlefield alum, to talk about what he\u2019s learned from building companies that have raised more than $1 billion collectively.\u00a0<\/p>\n Sasha breaks down what investors look for during fundraising, which financial metrics founders should know by heart, and why VCs don\u2019t expect your startup to be perfect\u2014they expect you to understand its reality. He also shares how he nearly lost a term sheet because his data room wasn\u2019t ready, how fundraising diligence changes as a startup grows, and why getting your financial house in order can help founders raise with more confidence and leverage.<\/p>\n They get into:<\/p>\n \u2022 <\/p>\n What raising more than $1 billion across multiple companies taught Sasha about fundraising<\/p>\n \u2022 <\/p>\n Why investors value founders who have a strong grasp of their company\u2019s financial reality<\/p>\n \u2022 <\/p>\n The financial metrics founders should know before pitching VCs<\/p>\n \u2022 <\/p>\n How investor expectations change from pre-seed and seed through Series A, B, and beyond<\/p>\n \u2022 <\/p>\n Why revenue growth and the quality of that revenue are critical fundraising metrics<\/p>\n \u2022 <\/p>\n How runway, margins, sales efficiency, and profitability factor into investor decisions<\/p>\n \u2022 <\/p>\n Why waiting until you\u2019re running out of cash can hurt your fundraising leverage<\/p>\n \u2022 <\/p>\n How Sasha nearly lost a term sheet because his data room wasn\u2019t ready<\/p>\n \u2022 <\/p>\n Why financial organization and compliance can influence investor confidence and startup valuations<\/p>\n \u2022 <\/p>\n What founders should have prepared for the due diligence process<\/p>\n \u2022 <\/p>\n Why VCs don\u2019t expect perfection\u2014and why being honest about what isn\u2019t working can make for a stronger pitch<\/p>\n \u2022 <\/p>\n How Sasha\u2019s own fundraising and finance frustrations ultimately led him to build Puzzle<\/p>\n \u2022 <\/p>\n How AI could change the way startups manage accounting and understand their financial health<\/p>\n Subscribe to Build Mode on Apple Podcasts (https:\/\/podcasts.apple.com\/gb\/podcast\/build-mode\/id1561051074<\/a>) , Spotify (https:\/\/open.spotify.com\/show\/0Dqmcq2aDrZkS9v1fITOKV<\/a>) , or wherever you like to listen (https:\/\/pod.link\/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vWUZMNjEyNzkzNjQ5NA<\/a>) . And watch the full videos on YouTube. (https:\/\/youtu.be\/Y7ADBXU39wE<\/a>) New episodes of Build Mode (https:\/\/techcrunch.com\/podcasts\/build-mode\/<\/a>) drop every Thursday.<\/p>\n Chapters:<\/p>\n 00:00 \u2013 Why VCs Want Founders Who Understand Reality<\/p>\n 01:26 \u2013 Sasha Orloff\u2019s Journey to Building Puzzle<\/p>\n 05:05 \u2013 Why Puzzle Started With Startup Founders<\/p>\n 08:38 \u2013 What Founders Should Know Before Fundraising<\/p>\n 11:08 \u2013 What Investors Look for During Due Diligence<\/p>\n 14:37 \u2013 Understanding the Financial Health of Your Startup<\/p>\n 17:52 \u2013 The Financial Mistakes Founders Make<\/p>\n 20:19 \u2013 When Startups Need Accountants and Finance Teams<\/p>\n 24:04 \u2013 How Sasha Almost Lost a Term Sheet<\/p>\n 26:10 \u2013 The Financial Metrics Founders Should Know Cold<\/p>\n 28:20 \u2013 Lessons From Raising $1B+ Across Multiple Companies<\/p>\n 31:45 \u2013 Why Financial Readiness Matters to Investors<\/p>\n 33:49 \u2013 How AI Is Changing Startup Accounting<\/p>\n 37:17 \u2013 Inside Puzzle\u2019s Series A With General Catalyst<\/p>\n 38:52 \u2013 Launching Puzzle at Startup Battlefield<\/p>\n 40:38 \u2013 Sasha\u2019s Advice for Early-Stage Founders<\/p>\n Hosted by Isabelle Johannesen. Produced and edited by Maggie Nye. Audience development led by Morgan Little. Special thanks to the Foundry and Cheddar video teams.<\/p>\n","protected":false},"excerpt":{"rendered":" Investors want founders who understand the financial reality of their business. 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