Lecture 9 - How to Raise Money (Marc Andreessen, Ron Conway, Parker Conrad)

Ron Conway, who says he has invested since 1994 and in over 700 companies through SV Angel, says he judges in the first minute whether a founder is a leader and focused.

Andreessen says a company with compelling evidence is easier to fund than one with only a theory and deck. Conrad describes choosing a business he thought could operate without outside funding after repeated rejections of an earlier company.

Andreessen's onion-of-risk model connects each financing with specific uncertainties to resolve, such as product, customer demand or the cost of selling. He warns against raising and spending money without a plan for what it will prove.

Conway recommends recording what an investor actually committed to and following up on important terms. The aim is to avoid confusion about money, valuation or introductions, not mistake an informal conversation for a completed investment.

The panel describes its 2014 referral-based investment processes. Conrad emphasizes that the credibility of an introduction matters and that helpful seed investors can support later fundraising. These are historical examples, not current access instructions.

The panel discusses how excessive early dilution can leave too little ownership for the team and later rounds. Its specific percentage ranges are opinions from 2014; the broader point is to understand the cap table and future funding needs with professional advice.

Andreessen compares a board investor to a relationship that may last many years. Conrad asks whether the investor brings useful insight and whether you would want them involved even without a checkbook. The panel argues that fit matters when a business encounters difficult decisions.