This framework is about different aspects of fundraising especially relationships between investment rounds and validation. The first 2 rows – fundraising and validating, are the guidance that outlines the evolvement phases of a scaleup, and appear in every framework as the head of a spread sheet.

1 Fundraising Seed Angel A B C D E F
2 Validating Validate idea Validate product Validate market Validate city Validate  cities Validate nationwide Validate  countries Validate globally
3 Validating Symptoms Founders LOVE idea to persevere. Angels LOVE idea to invest. Customers LOVE product so much that they will try and use. Customers LOVE product so much that they will pay. Customers LOVE product so much that they will recommend. Customers LOVE product so much that customer base GROWs. Customers pay more and repurchase, so that economic index GROWs. Keep sustainable GROWTH. Transform to GROW the second S curve.
4 Validating Scopes Logic Scenario Order Community Industry Value Culture Humanity
5 Validating Metrics Interviewees buying your idea>=20% 10x better Sean Ellis Test >40% NPS>50% Monthly Churn Rate<3% LTV>3*CAC CAC Payback Period<12 months Product(<=3yrs) revenue >=40%
6 Stages Seed stage Startup stage Growth stage Maturity stage Expansion stage Exit stage
7 Mundane Investor's Attitude Can't see the case. Look down upon the product. Can't see what the business model is. Can't catch the founder. The price seems too high.
8 Pitch 5 sec.: One sentence summary, e.g. we are Amazon in startup vertical field. 30 sec.(Elevator pitch): Including 5s. What to do. Market. Traction. 2 min.: Including 30sec. Unique insights(what you have recognized but giants don't). Special sauce(what you have but others don't). Product/Service. Competitive edges. Business model. Team. Fund required. 5min.: Including 2min. Data. Risks. Marketing strategies. Financial plan. 1 hr.: Including 5 min. Fully elaborate a story of the startup - Its culture & industry. Founder story. Customer success. Future & expectation, etc.
9 Fundraising Sources 3F Crowdfunding VC Bank PE Investment bank
10 Determinants Idea Team, product Business model Customer data Growth data Profit data Market share Overall data
11 Tips of Fundraising Arrange investor meetings intensively in advance by 2 weeks to produce busy image, scarcity and intensity. Convertible note is popular today to facilitate fundraising. Cap of convertible note can vary to award early investors. Odds of successful fundraising are best when you don't need investors. Appoint a co-founder to raise fund full-time, so as not to impede business. Be conservative to fundraising. Accept reasonable offer. Don't be affected by temporary failure. Keep morale high to give next investor a dynamic impression. Keep product first, because a progressive product is key to fundraising.
12 Mistakes of Fundraising Fundraising may impede business, because it's exhausting and frustrating. Addictive to fundraising - Dealing with investors may give you delusion of extending network. Mistake interest of analyst for investment manager's, and further for partner¡¯s. Not ask investor for next move when meeting is over. Think completeness of fundraising can be linearly measured by progress. Answer the question "Are there any other investors?" with a number. Answer the question of "How much fund to raise?" with a fixed number instead of a range. Reckon the rejection of investor as a total denial of the company.
13 Why Fundraising Is So Hard It's a fully efficient market. So few investors and so many scaleups result in intense competition. Investors are incompetent in ordinary meaning because they are not experts in every field, which leads to random decisions. Asymmetric information takes investors a long time to understand scaleups and establish trust. Investment manager only finishes 2 deals per year, however many business plans he receives. Every investor wants to invest in next Google, which leads to a high standard for scaleups. Many say fundraising is difficult, but it's more difficult if you start. A loan from banks requires fixed assets which scaleups don't have. Too many failures caused by too little angel knowledge result in insufficient confidence.
14 Fundraising Traps Angels without a reputation may set you up in times of trouble. Obscure VCs may bind you temporarily with term sheet when they are indecisive. Abuse of tranche investment by investors leaves scaleups risky. Investors abuse dominant position delaying decision for months. Investors want at least 4 times return at the time of sale in the future. Some harsh angel investors may let founders pay the convertible debt. Founders think fundraising is a default option. Contrarily growth is. Founders want investment when they are not worth of it.
15 Metaphors of Fundraising Investment managers are in the passive position to be courted like girls who sacrifice the most in marriage. Fundraising is like shifting gears: when fund is not raised enough to generate necessary speed, you can't change to the next gear. Like car races, if an investor can't have the top players on a certain track, it will be a failure. Investment managers having seen lots of scaleups are like girls spoiled of choices in speed dating.  Scaleups are like aircrafts taking off: if runway(capital) is too short to generate enough speed, crash happens. Board of investment meetings are like group interview - all partners must agree to pass a case. Competitors hit you in the jaws, but investors have your balls. Investment is like watering flowers - a little less is ok, but too much will surely produce problems.