Introduction – Goals For This Class

345 views
294 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
345
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Introduction – Goals For This Class

  1. 1. Introduction – Goals For This Class <ul><li>Who should raise venture capital? </li></ul><ul><li>What should you know about the process? </li></ul><ul><li>Where to raise equity capital? </li></ul><ul><li>When to raise capital? </li></ul><ul><li>How to go about raising capital? </li></ul><ul><li>Why do you need venture capital? </li></ul>
  2. 2. Common Misconceptions <ul><li>It’s too early to raise venture capital </li></ul><ul><li>The VCs will steal my idea </li></ul><ul><li>I will get ripped off financially </li></ul><ul><li>Only Angel investors do seed capital </li></ul><ul><li>Bootstrap is the safest way to keep control </li></ul>
  3. 3. What VCs Look For? <ul><li>Great People… </li></ul><ul><li>With a Great Idea… </li></ul><ul><li>Going after a Potentially Large Market </li></ul><ul><li>Focus </li></ul><ul><li>Commitment </li></ul><ul><li>Credible Operating Plan </li></ul>First Principles: Then: __________________________ __________
  4. 4. Great People <ul><li>Plan and execute </li></ul><ul><li>Adapt to change and remain committed </li></ul><ul><li>Lead by example </li></ul><ul><li>Surround themselves with “A” Players and Domain Experts </li></ul><ul><li>Have a track record of success </li></ul>
  5. 5. Who Should Raise Venture Capital? <ul><li>Entrepreneurs who want to build a large, successful business </li></ul><ul><li>Entrepreneurs looking to maximize their probability for success </li></ul><ul><li>Entrepreneurs looking for more than money </li></ul><ul><li>Entrepreneurs who are planning for a large exit </li></ul>
  6. 6. When to Approach a VC? <ul><li>When you’ve done enough work to convince yourself of the opportunity . . . before you’ve made mistakes that devalue your team or corrupt your capital structure </li></ul><ul><li>Get the Basics </li></ul><ul><ul><li>Clear articulation of the problem and market opportunity </li></ul></ul><ul><ul><li>Easily understood value proposition </li></ul></ul><ul><ul><li>Informed opinion of market evolution/risks </li></ul></ul><ul><ul><li>Clear articulation of a credible plan </li></ul></ul><ul><ul><li>Sufficient customer validation </li></ul></ul>
  7. 7. Who Ya Gonna Call? <ul><li>Do Your Homework! </li></ul><ul><ul><li>Determine who invests in seed/early stage </li></ul></ul><ul><ul><li>Determine who invests in your type of business </li></ul></ul><ul><ul><li>Know something about the players and the portfolio </li></ul></ul><ul><ul><li>Reputation and style </li></ul></ul><ul><ul><li>Know what to expect </li></ul></ul><ul><ul><ul><li>Typical terms </li></ul></ul></ul><ul><ul><ul><li>Process </li></ul></ul></ul><ul><ul><li>Develop and execute a strategy </li></ul></ul><ul><ul><ul><li>Targets, timing, approach </li></ul></ul></ul>
  8. 8. A Foot In The Door . . . And Beyond <ul><li>Get an introduction </li></ul><ul><ul><li>Respected entrepreneur </li></ul></ul><ul><ul><li>Limited partner </li></ul></ul><ul><li>Be selective </li></ul><ul><li>It’s all about the people </li></ul><ul><ul><li>60 second personal pitch </li></ul></ul><ul><ul><ul><li>Where have you been? </li></ul></ul></ul><ul><ul><ul><li>What did you accomplish? </li></ul></ul></ul><ul><ul><ul><li>Why should I listen to your opinion? </li></ul></ul></ul>
  9. 9. Ask For The Order <ul><li>Get specific feedback </li></ul><ul><li>Understand next steps </li></ul><ul><li>Efficient “no” better than a prolonged “maybe” </li></ul>
  10. 10. Checklist <ul><li>Have you gained buy-in from your family? </li></ul><ul><li>Is the team committed, flexible and each expert in his/her position? </li></ul><ul><li>Do you have the right expectations? </li></ul><ul><li>Have you validated the idea with several potential customers? </li></ul><ul><li>Do you have an informed opinion of the opportunity, the players, and how the market might evolve? </li></ul>√ √ √ √ √ √
  11. 11. Checklist (cont.) <ul><li>Do you have a tight, believable presentation? </li></ul><ul><li>Do you have a believable operating plan? </li></ul><ul><li>Have you done your homework on the VC and obtained an introduction? </li></ul><ul><li>Have you done a shakedown cruise? </li></ul>√ √ √ √ √

×