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How to fund your startup venture
 

How to fund your startup venture

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    How to fund your startup venture How to fund your startup venture Presentation Transcript

    • HOW TO FUND YOUR STARTUP November 2013
    • RICARDO WEISZ 2
    • TYPES OF STARTUP FUNDING 1. 2. 3. 4. Pre-seed Angel/Seed Series A Follow-up rounds
    • Accelerators Land of Zombies Angel Funds Pledge Funds Family Offc. Series A Incubators Death Valley Angel / Seed Universities Pre-seed Idea F&F VC Pre-Seed Funds Business Plan MVP $25K Alpha / Beta Proof of Concept $250K Commercial Launch Proven Product Cash Flow + Paying Customers $500K+ Proven Market $3MM 4
    • Pipeline Launchpad Business Plan MVP $25K AGP Accredited Wealthy Investors NWA Gold Coast Venture Forum AGP Series A MEC261 MIF Angel/seed The LAB Miami Pre-seed Idea Venture Hive Florida Growth Fund HIG Inflexion Antares Tamiami Alpha / Beta Proof of Concept $250K Commercial Launch Cash Flow + $500K+ Proven Product Proven Market $3MM 5
    • THE US VENTURE CAPITAL WORLD US Based VC Funds 2,700 US Based family offices 3,000 US based organized Angel groups US accredited investors SE High net-worth individuals 450 15,000 8,000 US Ultra high net-worth individuals ($1BB+) 600 US public pension funds 600 6
    • LANDSCAPE 2012 Stats Deal Count Total $ Invested ($M) Median Deal Size ($M) Angel/Seed 814 $793M $0.85 1,529 $8,950 $3.5 VC South East is least active region with less than 15% of all deals Source: 2013 Annual Venture Rundown by Pitchbook
    • CRITERIA • Management • Business plan • Compelling technology, product, service or market position • Sustainable differentiation • Addressable market size • Investment structure and clear path to profitability 8
    • • DOCUMENTS • REQUIRED TO • RAISE FUNDS • Executive summary Investment deck Detailed financials Pitch deck 9
    • • It’s about how company will look with investment FUNDRAISING • Start with good management; that’ PROCESS what people invest in • Fundraising is a slow process 10
    • WHERE DO I START? • • • • • Documents ready Gust Startup conferences Pitch accelerators Network 11
    • VALUATION METHODS • • • • Discounted net present value Comparables Historical Startup market 12
    • VALUATION COMMENTS • • • • • Don’t be greedy Be realistic Geography is influential Personal history Career of startups 13
    • WHEN SPEAKING WITH INVESTORS • Invested in your stage and/or industry in the past 12 months? • References? • Public Record of Transactions?  Check Form D Filings 14
    • FACTS • < 5% Investor pitches are investor ready • Average VC reviews 100 per month • An analyst reviews • 5% Pass screening each month • Principals review those which pass • All funds have scoring mechanisms and criteria 15
    • ACTUAL PROCESS • Don’t shop the company until you’re comfortable you’ll make it through screening • 20 to 40 hours a week • 3 to 6 months to finalize TS and receive money • 50-75 pitch presentations 16
    • • Crowdfunding • Kickstarter • Earlyshares COMMENTARY • Convertible debt • Fundraising never stops • Geography / Season 17
    • USEFUL LINKS • • • • • • • • http://www.nvca.org/ https://www.pwcmoneytree.com/ https://www.gust.com/ http://www.angelcapitalassociation.org/ http://www.cbinsights.com/ https://angel.co/ http://s.co http://www.edc-tech.org 18
    • SOFLA ACCELERATORS • • • • VentureHive.co LabMiami.org MEC261.com EDC-Tech.org 19
    • SUMMARY • Do your homework • Compelling story • It takes time 20
    • RICARDO WEISZ RICARDO@NORTHVEST.NET 21