The Client: InnovateX
InnovateX is a B2B SaaS startup that developed an AI-powered platform to help product managers automate user feedback analysis. Their technology could ingest data from multiple sources—support tickets, app reviews, social media—and use natural language processing to identify trends, bugs, and feature requests. The two founders, both ex-product managers, had bootstrapped the company to a promising ₹50 lakh ARR with a handful of early customers. However, they knew that to compete with larger players, they needed to raise their first institutional round of funding.
The Challenge: Bridging the Gap Between a Great Product and a Great Investment
The InnovateX team was brilliant at building product, but they were new to the world of venture capital. Their initial attempts at fundraising were met with polite passes. The feedback was consistent: while the product was interesting, their story was not compelling enough for investors.
Key Challenges:
- Weak Financial Narrative: They lacked a sophisticated financial model and couldn't clearly articulate their unit economics (LTV, CAC) or the key drivers of their business.
- Unpolished Pitch Deck: Their deck was too product-focused and didn't tell a clear story about the market opportunity, their competitive advantage, and their vision for the future.
- Disorganized Due Diligence Prep: They had no data room, and their corporate and financial documents were disorganized, making them unprepared for the scrutiny of a formal diligence process.
- Legal and Structural Issues: Their cap table was a simple spreadsheet, and they had used informal advisor agreements, creating potential legal risks.
The Solution: A Fundraising-as-a-Service Engagement
InnovateX engaged Nexa Consultancy to manage their fundraising process from end to end. We acted as their interim strategic finance team, focusing on positioning the company for a successful Series A.
Phase 1: Building the Foundation (Weeks 1-4)
We started by rebuilding their investment materials from the ground up, focusing on telling a story that would resonate with VCs.
- Financial Modeling: We built a robust, driver-based financial model. This wasn't just a forecast; it was a strategic tool. We worked with the founders to identify the key assumptions in their business—conversion rates, churn, expansion revenue—and built a model that clearly showed how an injection of capital would impact these drivers and lead to exponential growth. We calculated their LTV:CAC ratio, proving the viability of their business model.
- Pitch Deck Overhaul: We helped them rewrite their pitch deck. We shifted the focus from "what the product does" to "what problem it solves and how big the market is." We used the new financial model to create compelling charts that illustrated their traction and growth projections, crafting a narrative around a capital-efficient, high-growth SaaS business.
- Cap Table Cleanup & Legal Prep: We migrated their spreadsheet cap table to a professional platform. We worked with their lawyer to formalize advisor agreements and ensure all corporate documents were in order, eliminating any potential red flags.
Phase 2: Strategic Outreach (Weeks 5-8)
With a solid foundation in place, we moved to targeted investor outreach.
- Investor Targeting: Instead of a "spray and pray" approach, we used our database and network to build a curated list of 50 VC firms that had a specific investment thesis around B2B SaaS and AI.
- Warm Introductions: We leveraged our network of founders and investors to secure warm introductions to partners at over 30 of the targeted firms, ensuring their pitch deck landed at the top of the pile.
- Pitch Coaching: We conducted mock pitch sessions with the founders, pressure-testing their narrative and preparing them for the tough questions they would face. We helped them refine their 2-minute, 5-minute, and 20-minute pitches.
Phase 3: Managing the Process and Closing the Deal (Weeks 9-16)
As investor interest grew, we managed the entire process to create momentum and drive towards a close.
- Due Diligence Management: We prepared and managed a comprehensive virtual data room. When a lead investor began due diligence, all necessary documents were immediately available, creating a smooth and professional process that built immense trust. -
- Negotiation and Term Sheet Advisory: InnovateX received two term sheets. We modeled out both offers, explaining the nuances beyond the headline valuation, including liquidation preferences, pro-rata rights, and board composition. This enabled the founders to negotiate from a position of strength and choose the partner who was the best long-term fit.
- Closing Support: We coordinated with the lawyers on both sides to ensure the final shareholder agreements were executed efficiently and the funds were wired promptly.