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Lakeside Ventures - How to obtain VC financing for my startup
 

Lakeside Ventures - How to obtain VC financing for my startup

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How to obtain venture capital financing for my startup

How to obtain venture capital financing for my startup

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    Lakeside Ventures - How to obtain VC financing for my startup Lakeside Ventures - How to obtain VC financing for my startup Presentation Transcript

    • Excellence inManagementEducationHow to obtain VC financingfor my startupSDW Forum for Founders and EntrepreneursBerlin, May 2013
    • 29.05.2013 Slide 2Lakeside Ventures 2013 Introduction Every startup is different Landscape of financing sources Prepare for the battle (of fundraising) How to evaluate a VC Term sheet & shareholders agreement Enter fundraising – the heat is on!Agenda
    • 29.05.2013 Slide 3Lakeside Ventures 2013 Most scalable startups require external financing Fundraising can be crucial for the creation of a viable scalable business! Challenges to overcome Many founders fight for attention of the same investors Founders may struggle to „sell“ their startup Founders may underestimate lead time and difficulty of fundraising (3+ months VCfunding lead time is not unusual) Founders may spend 50%+ of their time on fundraising (which distracts them fromdeveloping their business) just when producing good news is a must Founders may not be able to negotiate on eye level with investors (one-time eventfor them vs. day-to-day routine for investor)Introduction
    • 29.05.2013 Slide 4Lakeside Ventures 2013 Business model type innovation vs. execution & lowvs. high competition Game of technology, sales, marketing,sourcing, funding,… Stage & capital requirements Seed, early stage, later stage Team composition & professional experience First-timers, industry professionals, seasoned entrepreneurs Achievements & current status Demo/prototype/beta, customers, revenue, intellectual property,… Sector E-commerce, social, mobile app, content discovery, SaaS, … Scalability Tech, marketing, sales, sourcing… Internationalization, vertical integration, horizontal integration Location Determine the „configuration“ of your startupEvery startup is different
    • 29.05.2013 Slide 5Lakeside Ventures 2013 Bootstrapping & Family/Friends/Fools Business Angels (smart vs. dumb money) Incubators Crowdfunding Public Grants Venture Capitalists(stand-alone vs. corporate)Determine your window of opportunityand risk propensityDetermine the right financing source(s)for your startupLandscape of financing sources
    • 29.05.2013 Slide 6Lakeside Ventures 2013Get help from somebody who has done it before! e.g. serial entrepreneurs, advisory board members, specialized (!)consultants with track recordCreate professional investment materials (investor presentation, financial plan)Create longlist and shortlist of potential investors within relevant categoriesPrepare company and team for due diligence (technical, financial, legal,…)Prepare for battle (of fundraising)
    • 29.05.2013 Slide 7Lakeside Ventures 2013 Fund size Power for follow-up rounds Stage focus early stage, later stage Activity level Number of deals / year Sector experience SaaS, e-commerce, social, mobile, B2B, … Portfolio composition Reputation & exits Connection to other VCs (syndication) International profile Strategic value In-house exit channel In-house customer acquisition Check websites Talk to founders of portfolio companiesHow to evaluate a VC
    • 29.05.2013 Slide 8Lakeside Ventures 2013 Investment amount Company valuation Other economic terms Liquidation preference Tag-along & drag-along Follow-up rounds Milestones Other control terms Shareholder consents Board seat Buy-in to vision & strategic alignment Long-term commitment (e.g. recognizing „valley of death“) Personal fit to investment professional assigned to your startupTerm sheet & shareholders agreement
    • 29.05.2013 Slide 9Lakeside Ventures 2013Create Attention Always try to get intros to investors from your lists Elevator pitch (sell!) to investment professionals as soon and often as possible Track & monitor all approaches Don„t take NO as a (first) answer Create Interest Follow-up relentlessly, but provide good news if you can! Mention positive interactions with other VCs Identify most common concerns and improve investment materials accordingly Create Desire Pitch your company (usually 60min) in person to most senior persons you can find Be the „almost-missed opportunity“ and try to build up urgency Trigger Action Obtain your first term sheet Continue talks with further investors to create/maintain backup or better options Negotiate a better offer Enter and make it through due diligenceSigning & closing Final negotiations Appointment with the notary And never forget:„The deal is only closed once you see fresh money on your bank account!“Enter fundraising – the heat is on!
    • 29.05.2013 Slide 10Lakeside Ventures 2013“Our passion is to create purposeful and sustainable entrepreneurial ventures” Entrepreneurs, please contact us!   www.lakeside-ventures.comThank you very much for your undivided attention!