How to get money for your startup
02.   Team             3D Founders: Developer, Designer and Distributor             Someone who understands how to build t...
03.   IdeaFind a startup idea that:_________________________________is already making money for someone else in a growingi...
04.   Remedy               Once you find such an idea, simply carve out a               niche within the industry by:     ...
05.   Getting investments. Theory                          Initial stage of investment is called «seed round» or          ...
06.   Getting investments. Theory                           Try to stay away from:                           _____________...
07.   Getting investments. Theory                           The typical amount of initial funding - is $100,000           ...
08.   Getting investments. TheoryThe typical equity, you need to share at this stageis - 10% to 30%_______________________...
09.   Getting investments. Theory                  There are lots of forms of structured deals, which can                 ...
10.   Getting investments. Investor deckCreate project presentation - investor deckYou need to create no more than 10 slid...
11.   Getting investments. Investor deck                   The investor deck should contain mostly text, some             ...
12.   Getting investments. Investor deck                                10 topics that a venture capitalist               ...
13.   Getting investments. Elevator pitchCreate elevator pitch.___________________________________________________________...
14.   Getting investments. Investors list                         Compile a list of target investors. Create this list in ...
15.   Getting investments. Investors list                          You need to make priority of investors and determine   ...
16.   Getting investments. Pitching                          Twenty minutes.                          ____________________...
17.   Getting investments. PitchingGuy Kawasaki is the co-founder of Alltop.com, an “onlinemagazine rack” of popular topic...
18.   Getting investments. Pitching  "As a venture capitalist, I have to listen to hundreds of entrepreneurs pitching thei...
19.   Getting investments. Money                      This is the most important stage in your project’s life.            ...
20.   Getting investments. Money                       Once you get the written consent of one investor, refer            ...
20.   Getting investments. Money                       Offer more favorable conditions for those who makes                ...
22.   Getting investments. Money                  Nothing pushes investors to make an investment decision, as the         ...
23.   Getting investments. Money          Remember! Always be closing.                                         23
24.   Findings                        Choose a niche for your startup;      Find the first investor with a good reputation...
25.   Contacts                 Good luck!                     Ilia Kenigshtein                    Business / Sales Executi...
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How to get money for your startup

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Simple rules about how to get money for your startup

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How to get money for your startup

  1. 1. How to get money for your startup
  2. 2. 02. Team 3D Founders: Developer, Designer and Distributor Someone who understands how to build technologies and systems to solve problems _________________________________ Someone who understands the human factors behind these problems, why they exist, what it takes to fix them and how to shape the experience _________________________________ Someone who understands how to reach, talk and sell to the people whose problems are being solved - and keep finding more of them. 2
  3. 3. 03. IdeaFind a startup idea that:_________________________________is already making money for someone else in a growingindustry interests you aligns with your skill sets. 3
  4. 4. 04. Remedy Once you find such an idea, simply carve out a niche within the industry by: _________________________________ Addressing pains of an under-served segment within that industry _________________________________ Or, making it much easier to use than existing solutions _________________________________ Or, disrupting the market by making your product accessible to masses at a much affordable price. 4
  5. 5. 05. Getting investments. Theory Initial stage of investment is called «seed round» or «angel round» _______________________________ The most typical investors - individuals with experience in high-tech and some capital _______________________________ A less common type of investor - a venture capital companies, who wants to invest in small deals _______________________________ Also, it may be your relatives or friends. 5
  6. 6. 06. Getting investments. Theory Try to stay away from: ___________________________ investors without investment experience ___________________________ and competence (dumb money) ___________________________ unknown persons for you ___________________________ your relatives or friends. 6
  7. 7. 07. Getting investments. Theory The typical amount of initial funding - is $100,000 - 500,000. ___________________________ No point to take less than $100,000 because it will be not enough to reach the next round of funding ___________________________ Very hard to take more than $500,000, because your company had not developed sufficiently. 7
  8. 8. 08. Getting investments. TheoryThe typical equity, you need to share at this stageis - 10% to 30%___________________________Ideal case - less than 20%___________________________Never give more than 30% for the initial funding. 8
  9. 9. 09. Getting investments. Theory There are lots of forms of structured deals, which can be used for investment. ___________________________ The best way - convertible debt - simply a loan (a debt obligation) that can be turned into equity (stock ownership), generally upon the occurrence of future financing. 9
  10. 10. 10. Getting investments. Investor deckCreate project presentation - investor deckYou need to create no more than 10 slides_________________________________10 - is the optimal number of slides in a PowerPointpresentation because a normal human being cannotcomprehend more than 10 concepts in a meeting - andventure capitalists are very normal._________________________________If you must use more than 10 slides to explain your business,you probably don’t have a business. 10
  11. 11. 11. Getting investments. Investor deck The investor deck should contain mostly text, some graphics and images. ______________________________ Forget about Business Plan at this stage - it is usually a waste of time, because everything will change very fast. 11
  12. 12. 12. Getting investments. Investor deck 10 topics that a venture capitalist cares about are: 1. Problem 2. Your solution 3. Business model 4. Underlying magic/technology 5. Marketing and sales 6. Competition 7. Team 8. Projections and milestones 9. Status and timeline 10. Summary and call to action 12
  13. 13. 13. Getting investments. Elevator pitchCreate elevator pitch._____________________________________________________________It is a short summary that is used for quick and simple defining of your product or service and its value proportion._____________________________________________________________The name "elevator pitch" reflects the idea that it should be possible to deliver the summary in the time span of anelevator ride, or approximately thirty seconds to two minutes._____________________________________________________________Go to my website to collect free elevator pitch example: www.kenigshtein.com 13
  14. 14. 14. Getting investments. Investors list Compile a list of target investors. Create this list in Excel, using your & your friends network. _____________________________ Forget about Sequoia Capital or Mangrove Capital at this stage. _____________________________ You should be able to find 10-20 investors in your area. _____________________________ If you are not able to find at least 10 investors around you - change the area. 14
  15. 15. 15. Getting investments. Investors list You need to make priority of investors and determine who is TOP5 in your list. _____________________________ You also need to allocate a specific time-frame for consideration of each investor. _____________________________ If the investor is "flog a dead horse" more than 1 month - forget him, most certainly he is just an idiot. 15
  16. 16. 16. Getting investments. Pitching Twenty minutes. ___________________________ You should give your ten slides in twenty minutes. ___________________________ Sure, you have an hour time slot, but you’re using a Windows laptop, so it will take forty minutes to make it work with the projector. ___________________________ Even if setup goes perfectly, people will arrive late and have to leave early. ___________________________ In a perfect world, you give your pitch in twenty minutes, and you have forty minutes left for discussion. 16
  17. 17. 17. Getting investments. PitchingGuy Kawasaki is the co-founder of Alltop.com, an “onlinemagazine rack” of popular topics on the web, a foundingpartner at Garage Technology Ventures and the ChiefEvangelist of Apple previously, said: 17
  18. 18. 18. Getting investments. Pitching "As a venture capitalist, I have to listen to hundreds of entrepreneurs pitching their companies. Most of thesepitches are crap: sixty slides about a “patent pending,” “first mover advantage”, “all we have to do is get 1% of the people in China to buy our product” startup. These pitches are so lousy that I’m losing my hearing, there’s a constant ringing in my ear, and every once in while the world starts spinning." 18
  19. 19. 19. Getting investments. Money This is the most important stage in your project’s life. Start talking with the investors. E-mails, Skype calls, meetings - use everything you can.Most professional investors will agree to invest even before the end of your meeting or Skype call. 19
  20. 20. 20. Getting investments. Money Once you get the written consent of one investor, refer to the next investors, appealing to the fact that the previous one has already agreed. _____________________________ Many investors could be interested, but it is hard to convert just interest into the formal signing of documents, without extra motivation. 20
  21. 21. 20. Getting investments. Money Offer more favorable conditions for those who makes decision faster and motivates investors when someone else agrees. _____________________________ Whenever you have any new arrangements, let them all know about it, thereby giving them additional reason to follow. 21
  22. 22. 22. Getting investments. Money Nothing pushes investors to make an investment decision, as the actions of other investors. ___________________________________ Every time when someone agrees - immediately ask them to sign a papers and send the money. ___________________________________ It is very important, as each day of delay reduces the chance of signing. 22
  23. 23. 23. Getting investments. Money Remember! Always be closing. 23
  24. 24. 24. Findings Choose a niche for your startup; Find the first investor with a good reputation, skills and competence; Communicate with many investors, 3-4 times more than you need; Push the investors; Bring to the end every deal. 24
  25. 25. 25. Contacts Good luck! Ilia Kenigshtein Business / Sales Executive Serial Entrepreneur ilia@kenigshtein.com http://linkedin.com/in/kenigshtein 25

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