Good, Bad &the Ugly of VCfundingFelecia Hatcher & Derick
Felecia lost all her hairafter taking on investors
3Over the past few years we have seen a shift in entrepreneurshipand how businesses are built or the perception of how they shouldbe built. There is an obsession with getting investor money and thebig SELL OFF. But know one talks about life after the term sheet. Howmuch it will change your life, how you may compromise the veryreasons you became an entrepreneur. Or the fact that you just tooka very big check in exchange for a boss with no experience in yourindustry. We couldn’t find this information before we took themoney so we are sharing some 411 will you today.Here is the good bad and the ugly...Here is the good bad and the ugly...Here is the good bad and the ugly...3
4After being In Businessfor 4 years webrought on investors in2012...we’re spilling the beanswe’re spilling the beanswe’re spilling the beans4
Follow us on Twitter• @FeleciaHatcher• @PearsonDerick• @YoungandConnected• Twitter Hashtag #YCVCgoodbadugly forQuestions
There’s more Fiction then Fact• Myth 1: Angel/VC funding is the Primary Source ofStartup Funding• Myth 2: Innovators and Investors are the same thing• Myth 3: All VC’s will provide valuable advice andmentoring• Myth 4: Investments will Generate Big Returns• Myth 5: In VC, Bigger is Better• Myth 6: Investors Take a Big Risk When They Invest inYour Company
6 Things I Didn’t Know About InvestorsBefore I Took the Money• Taking an investment is essentially a marriage but more like ashot gun wedding.• There’s no such thing as a silent partner it’s more like loudwhispers or yelling.• Vet your potential investor to make sure they are truly a good fitfor your business culture.• You will need more then Money• Define your exit plan before you sign the term sheet, becausethey have.• Grow Organically! IF YOU DON’T HAVE TO TAKE THE MONEYDON’T!
If you must insist...Tips for Pitching to InvestorsTips for Pitching to Investors• Don’t Pitch the Past Pitch the Vision-Investors already know what you’ve done they aren’t investingin your past they want a piece of what your future holds andyour first born :)• 10 Slide Rule- Keep is Simple• Put on a Show-Don’t be boring put on a show let yourpersonality shine through, if your product is live make it veryclear. You are pitching to humans not robots make itentertaining and peak their interest.• Traction, Traction, Traction- Its better to beabout it then just talk about it. Create an MVP and paint thevivid picture or put it in the judges hands