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VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way
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VC Funding for Geeks; or, How to Get Your Technology to Emerge the VC Way

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This was an etech talk by Marc Hedlund, Chief Product Officer, Wesabe …

This was an etech talk by Marc Hedlund, Chief Product Officer, Wesabe

Geeks and venture capitalists often don't speak the same language. This talk provides a look at venture capital financing from the point of view of the technologist. If you have an idea for a technology company or a technology you'd like to make into a product, should you look for VC backing? What should your expectations be going into the process? What are some of the common pitfalls technologists encounter when they try to find VC funding? How can you talk about your technology and your company in a way that will appeal to potential venture backers?

We'll approach the topic of venture backing without getting bogged down in the finance terminology common to VC primers (though references for those topics will be provided). You'll be given a more informal set of advice; rules of thumb and cautions will predominate.

Published in: Business, Economy & Finance
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  • That was brilliant. I'm always trying to teach technical people how to do investorspeak. I never thought about doing it the other way.
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  • I like this presentation but if you have new one, please send that to me. Thanks

    my email is funmoo@gmail.com<br /><br/>
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  • very practical! tnx 4 sharing.
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  • Hi precipice,

    If you upload the latest version to SlideShare and send me a link to that (rashmi@slideshare.net), then we can feature that one instead. Really liked this presentation BTW :->

    rashmi
    the slideshare team
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  • This presentation is now two years out of date -- I've changed it a lot since I gave this version. (It's better now.) Drop me a line (the email address is on the first slide of the presentation) if you want a copy of the newest version.
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  • What questions do you want covered? Venture capital: large investment to help develop a company, in exchange for partial ownership, a high-risk, high-return investment I will give you some advice, things I’ve learned from over 100 VC pitches through 3 startups And I’ll give you “the trick” -- there is one simple trick and you’ll get it here today
  • Transcript

    • 1. vc funding for geeks [email_address]
    • 2. &nbsp;
    • 3. &nbsp;
    • 4. &nbsp;
    • 5. &nbsp;
    • 6. &nbsp;
    • 7. &nbsp;
    • 8. &nbsp;
    • 9. &nbsp;
    • 10. okay
    • 11. #1: vc’s don’t start new companies
    • 12. &nbsp;
    • 13. <ul><li>customers </li></ul><ul><li>a customer </li></ul><ul><li>consulting </li></ul><ul><li>angel investors </li></ul><ul><li>bank loans </li></ul><ul><li>government grants </li></ul>yourself
    • 14. #2: focus on the business first not the funding
    • 15. if ($vc-&gt;will_fund()) { $company-&gt;accelerate(); } // need an else {} statement!
    • 16. <ul><li>build the product </li></ul><ul><li>get users </li></ul><ul><li>make money </li></ul><ul><li>don’t spend it </li></ul><ul><li>get to break-even </li></ul><ul><li>then and only then </li></ul><ul><li>think about vc </li></ul>
    • 17. <ul><li>money, for a while </li></ul><ul><li>credibility (maybe) </li></ul><ul><li>guidance and review (maybe good) </li></ul><ul><li>some introductions (maybe) </li></ul><ul><li>advocates for the company </li></ul>
    • 18. <ul><li>the trick: </li></ul><ul><li>the best way to get vc </li></ul><ul><li>is not to need it </li></ul>
    • 19. <ul><li>millions in development costs </li></ul><ul><li>vc-backed competitors (sometimes) </li></ul><ul><li>need big partners </li></ul>
    • 20. &nbsp;
    • 21. #3: no means maybe yes means maybe
    • 22. // pitch() returns an int, not a boolean int reaction = vc.pitch(); while (reaction &lt;= 0) { Thread.sleep(MONTH); reaction = vc.update(progress); }
    • 23. if (reaction &gt; 0) { }
    • 24. #4: funding is more than a full-time job
    • 25. <ul><li>“ i’m going to handle [ any job ] and fundraising” </li></ul>
    • 26. <ul><li>“ we’re going to do the </li></ul><ul><li>[ marketing, bizdev, sales ] </li></ul><ul><li>ourselves” </li></ul>
    • 27. <ul><li>on average </li></ul><ul><li>10 face-to-face pitches = 1 term sheet </li></ul><ul><li>(but it’s not even-flow) </li></ul><ul><li>3 term sheets = 1 financing </li></ul><ul><li>from pitch to term sheet: 2 months </li></ul><ul><li>(may be 10 or more meetings) </li></ul><ul><li>from term sheet to money: 1 month </li></ul><ul><li>total time: 6-12 months </li></ul>
    • 28. #5: some things about vcs
    • 29. <ul><li>vc is a business, too </li></ul><ul><li>see Tim Oren’s </li></ul><ul><li>“ No Exit: When Venture Capital Isn&apos;t Right” </li></ul><ul><li>http://due-diligence.typepad.com </li></ul>
    • 30. <ul><li>funders != founders </li></ul><ul><li>investors != inventors </li></ul>
    • 31. <ul><li>august and december </li></ul>
    • 32. okay
    • 33. what you need
    • 34. <ul><li>powerpoint presentation, 10-15 slides </li></ul><ul><li>executive summary, 2-3 pages </li></ul><ul><li>an introduction to a vc </li></ul>
    • 35. on pitches: Brad Feld: The Torturous World of PowerPoint http://www.feld.com/blog/ VentureBlog: Presenting Your Company http://www.ventureblog.com/
    • 36. the technologist’s trap
    • 37. <ul><li>will customers care about this product? </li></ul><ul><li>are they high-margin customers? </li></ul><ul><li>what has changed to allow a startup to grow? </li></ul><ul><li>are there enough customers willing to pay? </li></ul><ul><li>is there a sales channel that will be profitable? </li></ul>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?
    • 38. &nbsp;
    • 39. <ul><li>questions </li></ul>

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