Getting Funded     Surfing Metaphor  Re-created by Allen Kim
Surfing metaphor         The concept was initially         came about by an         investor in Sequoia         Ventures as...
Surfing metaphorThere are 4 parts to the surfing metaphor
1. The Surfer  (Most important)
Surfer = The TeamThe team is the most important aspect forearly stage startups.Your team must be smart, passionate withthe...
Qualities of a great team •   Tenacity (Don’t give up easily) •   Street smart (Go out talk to customers with the right qu...
Experienced                      =              $$$Entrepreneurs                                  Sure no               Gi...
2. The Wave
Wave = MarketVC’s want entrepreneurs tackling big problems(≠hard problems) with big market opportunity
Baby apparelBig Market               Baby professional                sports apparel    Pivot          Small Market       ...
Market Size   Understand what market you are addressing    •   What’s the market for my product?    •   How many people ar...
$$$Addressable market     is $1B+       (if true)
3. The Surfboard
Surfboard = ProductThe surfboard analogy is all about what yourproduct does and how it serves your marketYou need a produc...
Surfboard = Product  The surfboard analogy is all about what your  product does and how it serves your market  You need a ...
Your productWhat does my product do?What pain point does it address?How is this different from other products?   Why shoul...
# users/     customers                 time                        $$$People love it so much, we are experiencing a hockey...
4. The RideThe Deal & Why now?
Why Now?
Fail points        Immature Market        Product is great,but the market is not ready for it
Fail points    Saturated MarketThere are too many players in the market (Groupons)
Why Now?You have to have a good understanding ofwhy this product hasn’t been built before andwhy now is the best time the ...
The VC DealIn addition to the market, the deal itself hasto be fair: The valuation of your company’sworth and the structur...
I want 50% of your company for $100k                                                                  Oh and I want       ...
How to get funded      Summary
The Team     The MarketThe Product   Why Now
VC Funded = Startup success?
Where do entrepreneurs get their money? http://video.kauffman.org/services/player/bcpid40280745001?bckey=AQ~~,AAAAAF1AP-  ...
VC Funded = Startup success
Successfully bootstrapped companies                             Instapaper       Tap tap tap camera+       Cloud app
Thanks!Made by Allen Kim www.allenkim.me  allenkim77@gmail.com
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Getting funded

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4 Key components VC's look for in investing companies

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Getting funded

  1. 1. Getting Funded Surfing Metaphor Re-created by Allen Kim
  2. 2. Surfing metaphor The concept was initially came about by an investor in Sequoia Ventures as an analogy to what VCs look for in startups
  3. 3. Surfing metaphorThere are 4 parts to the surfing metaphor
  4. 4. 1. The Surfer (Most important)
  5. 5. Surfer = The TeamThe team is the most important aspect forearly stage startups.Your team must be smart, passionate withthe idea, dedicated, and focused.
  6. 6. Qualities of a great team • Tenacity (Don’t give up easily) • Street smart (Go out talk to customers with the right questions) • Resiliency (Entrepreneurs don’t die, they commit suicide) • Willingness to accept risk (Go all in or go home get a job) • Competitiveness (There are competitions. Play to win) • Decisiveness / Gets things done (Get s&*t done fast) • Ability to pivot (Best entrepreneurs fine tune their biz model) Source: From Mark Suster’s Entrepreneur’s DNA
  7. 7. Experienced = $$$Entrepreneurs Sure no Give me $30M for problem my next startupEntrepreneur VC
  8. 8. 2. The Wave
  9. 9. Wave = MarketVC’s want entrepreneurs tackling big problems(≠hard problems) with big market opportunity
  10. 10. Baby apparelBig Market Baby professional sports apparel Pivot Small Market Pivot
  11. 11. Market Size Understand what market you are addressing • What’s the market for my product? • How many people are gonna pay for it? • How much are they gonna pay for it? • When are they gonna pay?Addressable Market size for your business
  12. 12. $$$Addressable market is $1B+ (if true)
  13. 13. 3. The Surfboard
  14. 14. Surfboard = ProductThe surfboard analogy is all about what yourproduct does and how it serves your marketYou need a product that’s a 10x painkillerWhy?Because it has to be compelling enough tochange the way your customers normally dothings and pay money to use your product
  15. 15. Surfboard = Product The surfboard analogy is all about what your product does and how it serves your market You need a product that’s a 10x painkiller Why? Because it has to be compelling enough to change the way your customers normally do things and pay money to use your productProviding new value to customers = hard
  16. 16. Your productWhat does my product do?What pain point does it address?How is this different from other products? Why should someone use this? What product does the market currently use? Can your product beat your competitor’s?
  17. 17. # users/ customers time $$$People love it so much, we are experiencing a hockey stick growth!
  18. 18. 4. The RideThe Deal & Why now?
  19. 19. Why Now?
  20. 20. Fail points Immature Market Product is great,but the market is not ready for it
  21. 21. Fail points Saturated MarketThere are too many players in the market (Groupons)
  22. 22. Why Now?You have to have a good understanding ofwhy this product hasn’t been built before andwhy now is the best time the world needsthis.
  23. 23. The VC DealIn addition to the market, the deal itself hasto be fair: The valuation of your company’sworth and the structure of the term sheet. (Will go more into details in later presentations)
  24. 24. I want 50% of your company for $100k Oh and I want you outYou need to check if the VCs have reputable investment background, understand your industry, and are friendly to founders with fair terms (I’ll cover more on this in detail later)
  25. 25. How to get funded Summary
  26. 26. The Team The MarketThe Product Why Now
  27. 27. VC Funded = Startup success?
  28. 28. Where do entrepreneurs get their money? http://video.kauffman.org/services/player/bcpid40280745001?bckey=AQ~~,AAAAAF1AP- k~,paP-6btd7SPcN3he8b6wgT6uI64ClnLc&bctid=1304559795001
  29. 29. VC Funded = Startup success
  30. 30. Successfully bootstrapped companies Instapaper Tap tap tap camera+ Cloud app
  31. 31. Thanks!Made by Allen Kim www.allenkim.me allenkim77@gmail.com

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