Investor Outreach Strategy

This document defines our investor pipeline, targeting, and outreach process for the current round. Objective: Prioritize thesis-aligned firms/angels, structure warm introductions, and track meetings to drive momentum.

Market Reality and Funding Landscape

Current Market Conditions

AI VC Appetite: High but selective; capital is concentrated (AI was ~53% of global VC, ~64% of US VC in 2025)
Deal Dynamics: Early-stage deals favor sharp execution with differentiated wedges
Valuation Environment: Median US SaaS pre-seed is ~$700k; market has "corrected" from 2021 and investors are more picky
Geographic Reality: Coming in as a non-Bay, solo founder, YC or equivalent brand meaningfully de-risks for US investors unless you already have a strong network

Pre-Seed/Seed Market Assessment

Competition Level: Not easier than 2 years ago; just less dead than 2023
Investor Expectations: Focus on traction metrics, team quality, and differentiated positioning
Capital Efficiency: Investors favor companies that can demonstrate disciplined spending and learning velocity
Timing Advantage: AI governance and cost control becoming critical pain points for growing companies

Y Combinator Application Strategy

Application Approach

Mindset: Apply as a "cheap lottery ticket," not "the only doorway to capital"
Honest Positioning: Solo founder, pre-MVP status, but with crisp articulation of cross-app wallet + consent layer above gateways
Key Elements: Why now, why you specifically, clear wedge, and realistic execution plan
Traction Philosophy: Don't over-optimize for traction in 5 days; focus on authentic progress and learning

YC Value Proposition

Problem-Solution Fit: Clear articulation of AI cost control and governance problem
Market Timing: Alignment with AI adoption acceleration and cost management needs
Founder-Market Fit: Solo founder with domain expertise and execution capability
Scalability: Clear path to building a meaningful business with defensible moats

Dual-Track Fundraising Approach

Parallel Strategy

YC Application: Submit application while pursuing direct angel/VC conversations
No Roadmap Distortion: Don't distort product roadmap purely to show artificial traction
Authentic Progress: Focus on shipping MVP fast → get 3–5 real design partners → use that traction for both YC and direct investors
Real Value Over Vanity: Genuine usage + LOIs matter more than BS vanity metrics

Timeline Coordination

Week 1-2: YC application submission and initial angel outreach
Week 3-6: Parallel conversations while building MVP and recruiting design partners
Week 7-10: Leverage early traction for both YC interviews and investor meetings
Week 11-12: Decision making and closing based on best options available

Angel Alignment and Funding Narrative

Angel Investor Profile

Target Angels: AI infrastructure/agentic tools focused investors with operational experience
Value Alignment: Angels who understand SaaS economics and the importance of cost control
Geographic Focus: US-based angels for regulatory simplicity and market access
Check Size: $25K-$100K range to complement YC funding or pre-seed rounds

Credit System Value Proposition for Angels

COGS Reduction: Prepaid credits system reduces cost of goods sold and improves unit economics
Early Pilot De-risking: Credits-based model allows for risk-free pilot programs with potential customers
Clear Milestones: Pair credit allocation with specific milestones to demonstrate disciplined spend and learning velocity
Usage-Based Validation: Real usage patterns provide concrete data for scaling decisions

Proof Points for Angel Due Diligence

Design Partner Sprint: 3-5 indie apps successfully integrated and using AI Wallet
Budget Enforcement Events: Real-time budget controls preventing cost overruns
Consent Receipt Exports: Demonstrable compliance and governance value
Distribution Directory: Growing directory of "Works with AI Wallet" integrations
Partner Revenue: Evidence of co-marketing success and partner-sourced revenue

Angel Messaging Framework

Public/Partner Message: "Stripe + OAuth for AI" (identity, budgets, consent, directory) Investor Message: Optionality toward a distribution surface above AI gateways Key Principle: Be honest but narrow, not deceptive about capabilities and market position

Investor Pipeline Development

Target Investor Categories

AI Infrastructure Angels: Previous investments in AI tooling, developer platforms
SaaS Operators: Former founders who understand cost control and governance needs
Developer Tool Investors: Thesis-aligned on developer productivity and platform plays
Governance-Focused: Investors with portfolio companies facing AI cost and compliance challenges

Pipeline Building Process

Week 1: Research and identify 15-20 target angels with warm intro paths
Week 2: Develop investor-specific messaging and reference materials
Week 3: Begin warm intro outreach through existing network
Week 4-6: Execute outreach cadence with weekly follow-up schedule

Warm Introduction Strategy

Network Mapping: Leverage existing connections, portfolio company contacts, advisor networks
Mutual Value: Emphasize how AI Wallet can benefit investor's existing portfolio companies
Credibility Signals: Reference design partners, technical advisors, early traction
Story Hooks: Compelling founder story, market timing, unique insights

Investor Assets and Materials

Core Materials

5-Slide Pitch Deck: Problem, solution, market, traction, ask
1-Page Executive Summary: Key points for quick review and sharing
Product Demo: Working prototype with design partner integration
Financial Model: 3-year projection with credit-based revenue model
Reference Letters: From design partners and technical advisors

Supporting Materials

Market Research: AI cost control pain point validation
Technical Architecture: Security, scalability, and compliance framework
Competitive Analysis: Positioning against existing solutions
Partnership Pipeline: Evidence of co-marketing opportunities

Due Diligence Preparation

Financial Records: Detailed cost structure, unit economics, pricing model
Technical Documentation: Security audits, performance benchmarks, API documentation
Legal Structure: IP assignments, employment agreements, cap table planning
Operational Metrics: Customer acquisition cost, retention rates, partner satisfaction

Outreach Sequence and Pacing

Initial Contact Approach

Week 1: 3-5 warm intro emails with concise value proposition
Week 2: Follow-up with additional context and meeting request
Week 3: Light touch with updates on progress and traction
Week 4: Formal meeting request with specific agenda and outcomes

Meeting Structure

Discovery Meeting (30 minutes): Background, fit assessment, mutual interest
Deep Dive (60 minutes): Product demo, market analysis, business model
Due Diligence (90 minutes): Financial review, technical assessment, reference calls
Term Discussion (45 minutes): Investment terms, timeline, next steps

Follow-up Cadence

Immediate: Thank you email with action items and next steps
Week 1: Progress update with concrete milestones achieved
Week 2: Additional materials or reference customer introductions
Week 3: Final decision timeline and any outstanding questions

Meeting Tracking and Notes

CRM and Pipeline Management

Contact Database: Detailed notes on background, interests, portfolio companies
Meeting History: Complete record of all interactions and commitments
Follow-up Tasks: Automated reminders and action item tracking
Status Updates: Clear pipeline stages and probability assessments

Meeting Notes Template

Attendees: All participants and their roles
Key Discussion Points: Main topics covered and investor concerns
Questions Raised: Specific questions that need follow-up or research
Next Steps: Clear commitments from both sides
Follow-up Date: Specific timeline for next interaction

Decision Tracking

Interest Level: High/Medium/Low with specific reasoning
Investment Capacity: Check size, timing, and participation appetite
Reference Network: Potential warm intros and portfolio synergies
Decision Timeline: Expected date for investment decision

Closing Strategy and Terms

Term Sheet Negotiations

Valuation Range: Based on traction, market size, and competitive landscape
Investment Structure: Equity vs. convertible note considerations
Board/Advisor Roles: Adding value beyond capital
Information Rights: Reporting cadence and key metrics sharing

Legal and Documentation

Legal Counsel: Experienced startup attorney for term sheet review
Due Diligence: Organized data room with all key documents
Reference Checks: Portfolio companies, customers, and professional references
Cap Table Planning: Future dilution modeling and option pool planning

Post-Close Value Creation

Network Activation: Leveraging investor connections for partnerships and customers
Strategic Guidance: Monthly check-ins and advisory sessions
Follow-on Planning: Future round strategy and investor relations
Exit Preparation: Long-term value creation and liquidity planning

Risk Mitigation and Contingency Planning

Common Investor Concerns

Solo Founder Risk: Advisory board and key employee retention strategy
Pre-Revenue Validation: Design partner commitment and usage metrics
Competitive Positioning: Moat development and differentiation strategy
Market Timing: Evidence of problem urgency and willingness to pay

Contingency Scenarios

YC Rejection: Continue with direct angel/VC fundraising using same traction
Market Downturn: Focus on capital efficiency and extended runway planning
Technical Delays: Pivot to consulting/services revenue while building product
Competition Emergence: Accelerated feature development and partnership strategy

Success Metrics and KPIs

Fundraising Metrics

Pipeline Velocity: Time from first contact to term sheet
Conversion Rates: Meetings to serious interest to term sheets
Average Check Size: Target range achievement and investor diversity
Round Completion: Timeline adherence and oversubscription management

Investor Relations

Communication Quality: Regular updates and transparency in challenges
Value Delivery: Beyond capital - introductions, guidance, market insights
Portfolio Synergies: Concrete benefits for investor's other investments
Follow-on Potential: Interest in future rounds and increased involvement

Source: YC-VCMarket-ExposureRisks-05Nov25-ChatGPTPlus.pdf Source: MVPPlan-CloudCredits-Angels-01Nov25-ChatGPTPlus.pdf