Fundraising Playbook: How to Structure the Perfect Funding Round and Stay Fundable in Later Stages

About this episode

Gloria Bäuerlein has made a name for herself in the European startup scene – on both the investor and operator side. After stints at growth investor TCV and multi-stage VC Index, as well as operational roles at scaleups Kry and Back, she launched her first VC fund as a solo GP 1.5 years ago with Puzzle Ventures, raising 21.5 million euros.

Her unique perspective from both worlds makes her the ideal conversation partner for founders who want to approach their funding rounds strategically.

The Most Common Mistakes in Early Funding Rounds

From her experience as an investor, Gloria repeatedly sees the same pitfalls among early-stage startups. Many founders underestimate the long-term impact of their decisions in the first rounds. It's not just about pure capital raising, but about strategically building a solid foundation for future funding rounds.

Things become particularly critical when founders don't find the right balance between funding amount and valuation. Those who get valued too highly too early risk problems in later rounds – a classic case of "growing into the valuation."

The Perfect Cap Table for Early Stage

What makes an ideal cap table from the perspective of later growth investors? Gloria explains what investors like TCV look for when examining the composition of the shareholder structure. It's not just about percentage distribution, but also the quality and engagement of existing investors.

A well-structured cap table shows growth investors that the startup is professionally managed and strategic decisions have been made. Mistakes in early structuring can hardly be corrected later and significantly influence fundability.

Using Angel Investors the Right Way

Angel investors play an important role in the startup ecosystem – but only when properly integrated. Gloria shares concrete do's and don'ts for angel rounds and explains how founders can extract maximum value from these early investors.

It's not just about the capital, but primarily about the network and expertise that angels bring. The right selection and structuring of angel participation can make the difference between a successful and problematic Series A.

Terms You Should Reject as a Founder

Not all investors are equal, and not all terms are acceptable. Gloria gives clear recommendations on which conditions founders should never accept – regardless of how urgently they need the capital.

These "red flags" in term sheets can long-term hinder the company's growth and make future funding rounds difficult or even impossible.

Board Setup: Getting Governance Right from the Start

The right board composition is more than just a formal requirement. Gloria explains how founders can build an effective governance structure from the beginning that serves the company in various growth phases.

It's about finding the right balance between control and strategic support – an art that many founders learn only late in the game.

Managing Expectations Across Different Stages

What do investors expect in seed, Series A, and later rounds? Expectations change dramatically with each funding phase, and founders need to understand how to position their company accordingly.

Gloria's experience as a growth investor gives her unique insights into the mindset of later-stage investors – knowledge that is invaluable for founders in early phases.

The Characteristics of Successful Founding Teams

After numerous investments and operational experiences, Gloria has clear ideas about what distinguishes successful founding teams. These characteristics go far beyond technical competence or industry know-how and concern fundamental aspects of leadership and collaboration.

For founders who want to be successful long-term, these insights are a valuable compass for their own development and that of their team.