Digital Ocean is worth $18 billion. This morning, I dug into their original seed round deck from 2013. Here’s what you can learn to help you in your fundraise…

Clearly Framing the Problem

Digital Ocean’s value proposition is simple: we let you deploy to the cloud quicker and easier.

See how clear this value prop is? That’s something a lot of startups get wrong.

I’m 17 slides deep into their deck and I still don’t understand what they do or why. At that point, your odds of getting a check are minimal.

I also loved all the testimonials from users. There’s nothing like hearing from the people that actually use the product.

An Insane Revenue Ramp

In this deck, it’s the Traction slide that really stands out.

Digital Ocean was already at a $1 million annual run rate, up from approximately $200k just 4 months prior. That’s 50% MoM growth.

You could meet with 50 startups and not find one with growth this strong. This traction is what will make investors finally pull out the checkbook.

You could have the prettiest slides or the sickest launch video. But in the end money talks.

Where’s the Team Slide?

There’s one crucial thing missing from this deck: a team slide.

Two of the founders, Ben and Moisey Uretsky, previously started a company called ServerStack. They got it to $6 million ARR.

But that information is nowhere in the deck. What a miss!

That would have gone a long way to convincing VCs these guys are worth betting on. But the clarity of their vision and the strength of their traction was still enough to make the sale. 

Would I Have Invested?

Digital Ocean in 2013 had everything I look for in a startup.

They’re addressing a major problem. Their value prop is clear. The founders have a history of achievement. And their growth is off the charts.

Had I been lucky enough to see this deal, I would have been knocking people over to invest. 

Wrap-Up

Digital Ocean’s seed deck nails the key points. They clearly explain the value prop and show us strong traction.

The only way they could have made it better: sell the awesome accomplishments of the founders.

Digital Ocean wound up closing $3.2 million in their seed round, led by IA Ventures. This investment helped turn IA into a top firm.

If you’re raising money right now, learn from the Digital Ocean founders. Be crystal clear about the problem you’re solving. Show us strong evidence that it’s working.

If you can do that, you just might be the next Digital Ocean.

More on tech:

Why Short Decks Raise Millions

You’ve Got Your First Customer. Now, How Do You Raise Money?

How to Write Cold Emails to Investors That Actually Get Replies

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