vc funding for geeks [email_address]

okay

#1: vc’s don’t start new companies

customers a customer consulting angel investors bank loans government grants yourself

customers

a customer

consulting

angel investors

bank loans

government grants

#2: focus on the business first not the funding

if ($vc->will_fund()) { $company->accelerate(); } // need an else {} statement!

build the product get users make money don’t spend it get to break-even then and only then think about vc

build the product

get users

make money

don’t spend it

get to break-even

then and only then

think about vc

money, for a while credibility (maybe) guidance and review (maybe good) some introductions (maybe) advocates for the company

money, for a while

credibility (maybe)

guidance and review (maybe good)

some introductions (maybe)

advocates for the company

the trick: the best way to get vc is not to need it

the trick:

the best way to get vc

is not to need it

millions in development costs vc-backed competitors (sometimes) need big partners

millions in development costs

vc-backed competitors (sometimes)

need big partners

#3: no means maybe yes means maybe

// pitch() returns an int, not a boolean int reaction = vc.pitch(); while (reaction <= 0) { Thread.sleep(MONTH); reaction = vc.update(progress); }

if (reaction > 0) { }

#4: funding is more than a full-time job

“ i’m going to handle [ any job ] and fundraising”

“ i’m going to handle [ any job ] and fundraising”

“ we’re going to do the [ marketing, bizdev, sales ] ourselves”

“ we’re going to do the

[ marketing, bizdev, sales ]

ourselves”

on average 10 face-to-face pitches = 1 term sheet (but it’s not even-flow) 3 term sheets = 1 financing from pitch to term sheet: 2 months (may be 10 or more meetings) from term sheet to money: 1 month total time: 6-12 months

on average

10 face-to-face pitches = 1 term sheet

(but it’s not even-flow)

3 term sheets = 1 financing

from pitch to term sheet: 2 months

(may be 10 or more meetings)

from term sheet to money: 1 month

total time: 6-12 months

#5: some things about vcs

vc is a business, too see Tim Oren’s “ No Exit: When Venture Capital Isn't Right” http://due-diligence.typepad.com

vc is a business, too

see Tim Oren’s

“ No Exit: When Venture Capital Isn't Right”

http://due-diligence.typepad.com

funders != founders investors != inventors

funders != founders

investors != inventors

august and december

august and december

okay

what you need

powerpoint presentation, 10-15 slides executive summary, 2-3 pages an introduction to a vc

powerpoint presentation, 10-15 slides

executive summary, 2-3 pages

an introduction to a vc

on pitches: Brad Feld: The Torturous World of PowerPoint http://www.feld.com/blog/ VentureBlog: Presenting Your Company http://www.ventureblog.com/

the technologist’s trap

will customers care about this product? are they high-margin customers? what has changed to allow a startup to grow? are there enough customers willing to pay? is there a sales channel that will be profitable? do I want to work with these people for five years? are the numbers believable? how much to get to profitability? do they know the competition? how well are they positioned? do I believe these people can win?

will customers care about this product?

are they high-margin customers?

what has changed to allow a startup to grow?

are there enough customers willing to pay?

is there a sales channel that will be profitable?

questions

questions