Fundraising Checklist for a $1M Raise

Capital Structure for $1M

A $1M raise is typically pre-seed or early seed. Key decisions:

- Instrument: SAFE (standard at this size — lower legal costs, faster to close) - Valuation cap: $4M-$8M for most verticals (research comparables in your specific space) - Number of investors: 5-15 investors at $50K-$250K each is typical. One lead investor setting terms simplifies the process - Legal costs: Budget $2K-$5K for standard SAFE documents. Don't overpay — SAFEs are standardized - Timeline: Plan for 6-10 weeks from first meeting to close

Map the $1M to specific milestones: '$1M gives us 18 months of runway to reach [specific metric] through [specific plan].' Every dollar should have a purpose.

Materials Needed

For a $1M raise, keep materials lean:

- Pitch deck: 10-12 slides. Problem, market, solution, traction (whatever you have), team, business model, ask. No filler slides - One-pager: Single-page summary for investors to share internally. Company name, one-sentence description, key metrics, team highlights, raise amount - Financial model: Simple — 18-24 month projection with monthly granularity. Revenue assumptions, burn rate, hiring plan, and how the $1M gets deployed - Cap table: Current state and pro-forma post-round. Use Carta, Pulley, or a simple spreadsheet

Don't build: A full data room (unnecessary at this stage), a 40-page business plan (nobody reads them), or a polished marketing website (spend that time on product).

Finding $1M Worth of Investors

For a $1M raise, you need 5-15 investors. Source them from:

1. Personal network: Friends, family, former colleagues who can write $25K-$100K checks. Start here — warm money closes fastest 2. Angel investors: Target 10-20 active angels in your vertical. Get introductions from other founders 3. Micro VCs: 3-5 micro VCs who invest $100K-$500K at your stage. One as lead simplifies the round 4. Accelerators: Y Combinator ($500K), Techstars ($120K), and vertical-specific programs can anchor or supplement your raise

Sequencing: Close personal network first (1-2 weeks), then angels (2-4 weeks), then micro VCs (2-4 weeks). Momentum from early commitments makes later conversations easier.

Closing the Round

Common $1M raise closing dynamics:

- First 30% is hardest: Getting the first $300K committed takes the most effort. After that, social proof accelerates commitments - Set a target close date: 'We're closing by [date]' creates urgency. Investors who are interested but slow will move faster with a deadline - Rolling close: With SAFEs, you can close investors individually as they commit. You don't need everyone to sign simultaneously - Minimum viable round: If your milestones can be reached with $750K, consider closing at that amount rather than waiting indefinitely for the full $1M - Post-close: Send a thank-you note, add investors to a quarterly update email, and get to work on the milestones you promised