From idea to exit, startup founders who utilize PitchBook have access to best-in-class data, meaningful insights and industry-defining research. Our features and offerings can propel your company to the next level, regardless of where you’re at along your trajectory. Whether you’re looking for fitting investors, perfecting your business plan, scaling up or mapping your exit, PitchBook empowers founders around the globe to win what’s next—again and again.
Among PitchBook’s solutions for startups, here are seven ways founders and founding teams can leverage the platform throughout their entire lifecycle.
7 ways startups can leverage PitchBook
1. Find the right investors
PitchBook’s global data on investors is second-to-none—we track salient details on hundreds of thousands of investors. More specifically, the platform surfaces top investors by funding round, firms with dry powder and those who are currently fundraising, investors who tend to invest in women- and minority-owned companies, and much more.
Using PitchBook, you can curate a list of investors that are active in your industry. From there, it can be helpful to drill down and compare the investors on your list to each other, taking into consideration things like location, deal type and investment preferences.
No two VC firms are the same, and every investor brings their own unique perspectives, experiences and preferences to the table. To find the right investors for your startup, you need to identify VCs that align with your values. We've put together a list of questions to ask yourself and your team as you work through this evaluation process—it's included in our guide to VC fundraising for startups.
Download PitchBook's guide to VC fundraising for startups »
2. Assess investors’ available cash
Easily sort investors by the amount of cash they have on hand, also called dry powder, to ensure you’re looking at prospective investors that can meet your capital requirements. Check out an investor’s open and closed funds—PitchBook tracks more than 90,000 funds—then dive into their distinct characteristics, like vintage year, type and size.
93% of PitchBook clients rate our fund coverage as better than other data providers
3. Stay on top of the competitive landscape
The private markets are ever-evolving, and founders need to be able to navigate all the bends and turns. It can be tricky to track startups and small businesses, but it’s imperative for younger companies to understand where they sit within the broader competitive landscape. Yes, new startups carry more risk than established companies—but they can also be more nimble and make quicker pivots when needed.
Startups leveraging PitchBook can uncover emerging competitors and dig deep into the details of new and established players alike. From conducting a competitive analysis of similar and adjacent markets to parsing through financial information on specific players, our platform has you covered. Plus, you can create custom, presentation-worthy market maps in an instant to stay on top of trends and inform your growth strategy.
4. Calculate a fair equity stake
As a startup founder, you may need to raise capital from investors to facilitate growth, expand your offerings and build out the best team. On the flip side of that equation, you know that any equity you give up today—even if you need the capital ASAP—means you won’t have that equity later, or the appreciated value behind it. Ceding any amount of ownership to access the funding you need is no small consideration, and finding the right balance can be difficult. With robust valuations data from PitchBook, you can assess your company’s value with confidence and precision. Unmatched transaction data also means you can easily discern the median price percentage acquired in your industry to calculate a fair equity structure to present to investors.
5. Be in the driver’s seat when you negotiate
With an ideal equity structure in hand, you’re primed to enter into negotiations with confidence. In fact, a rapid increase to the supply of capital in VC means that founders are in a unique position to push for their preferences when it comes to term sheet negotiations.
“When we see an increase in capital available to startups relative to what we estimate they demand, we expect startups to have more leverage at the negotiating table,” says Alex Warfel, a quantitative research analyst on PitchBook’s institutional research team.
To get an additional leg up when negotiating term sheet specifics, you can lean on PitchBook to analyze pre- and post-money valuations of comparable companies and dig deep into cap tables.
6. Hire top talent
Those involved in the hiring process have traditionally gleaned information about job seekers’ histories and qualifications through their resumes. PitchBook adds a layer of data on top of that to reinforce millions of professionals’ experiences and provide additional detail on their past roles. When you’re ready to recruit executives and other leaders with a background in VC, you can create tailored lists of top prospects using PitchBook that include specific qualifications and industry experiences, contact information and more.
7. Develop a winning exit strategy
If you’re in the beginning stages of your startup journey, an exit may seem way down the road. But showing investors that you’ve given it serious thought is an important step in securing VC funding to fuel your company toward its next milestone—whatever that may be. With PitchBook, you can analyze the exits and timelines of other companies in your sector, industry vertical or emerging space. Dial in your search with filtering options like exit amount, minimum and maximum post-valuation and exit date range to map out your own exit strategy.
“I want you all-in on building your business for the long haul, while being keenly aware at the same time of who might ultimately acquire your company. It may sound a bit paradoxical, but it’s imperative that you, as a founder, hold both perspectives at the same time: commitment to building with an eye on the exit.”
–Carrie Colbert, Founding and General Partner, Curate Capital
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