Raise a series A is a different ball game from raising a seed round, and for Akilesh Bapu, CEO and co-founder of AI-powered medical transcription platform DeepScribe, giving would-be investors a tough deadline while still relying on early investors for support and guidance has made all the difference.
“We were on this trajectory as a company where we had some semblance of product-market fit,” Bapu said, reflecting on the summer of 2021. “We had proven our product. We had about 200 live customers on the platform… We were excited to bring DeepScribe to more customers and seek out the best partners for us there, not only in the short term but also in the long term. We had a long term vision… and we wanted a partner who embraced this vision.
Eventually, the company closed a $30 million Series A round led by Index Ventures partner Nina Achadjian, as the duo discussed on the latest episode of TechCrunch Live, our weekly program featuring entrepreneurs. , developers and investors. The entire episode is available below, along with part of DeepScribe’s Series A pitch deck.
If it weren’t for the fact that Bapu and his team had set deadlines for the funding round, he said DeepScribe might not have worked with Index – Achadjian was on vacation when she read their pitch and tried to push back. the meeting the following week, but Bapu said the process was moving quickly. They met the next day.
Subsequently, Achadjian was sold. “When I walked out of the meeting, I immediately went to one of my partners and said, ‘Finally, I’ve found the company that’s following the right approach,'” she said.
When I walked out of the meeting, I immediately went to one of my partners and said, “Finally, I found the company that follows the right approach.” Nina Achadjian
She added that this was a critical win for DeepScribe, as it is essential to leave potential investors excited and armed with a few important points, including about the team and the market.
Prepare for due diligence
Since Index became interested in DeepScribe, the company began to conduct due diligence.
Achadjian said founders can speed up the process by anticipating questions, especially about market size and the competitive landscape. Firms may also provide investment firms with summaries of client call notes.
“Then we come up with a list of key questions that we want to drill down on,” Achadjian said. “What is the business model? How are you progressing? The references. Actually, I called one of Akilesh’s teachers at Berkeley. We do a lot of client calls and check contractor references. Then, honestly, we love spending time with the team and seeing them in different environments.