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So you want to raise capital
 

So you want to raise capital

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    So you want to raise capital So you want to raise capital Presentation Transcript

    • So you want capital for yourstartup or small business, eh? Aghhahaha…sucka..
    • Startups are hard.
    • Startups are really hard.
    • Startups are heartbreaking.
    • Startups are soul crushing.
    • Startups are life shortening.
    • fact:this is not reality.
    • funding myths about startups and small businesses1. Startups cost nothing to build2. Startups get funded on a napkin3. A good idea wins every time
    • myth #1:startups are cheap to build
    • reality:lean or not, it costs money to build something significant. savings do run out.
    • stuff that cost MONEY as if you didn’t know this• Hiring amazing people – and you need A level amazing people in startups (they like to be paid even if they believe in you)• Infrastructure – yes. It’s cheaper than it was, but those EC2 bills still pull from your bank• Marketing – you can do a lot of social media for free in the beginning, but there is a bunch of noise to weed through today• Funding – yes. It cost money to make money, it takes your time and cost you money to meet with the right people that will fund your business.
    • fact: 4 out of 5 people who use the phrase “it’scheap to build a startup” have never built a startup (and probably never will)… the remainder are independently wealthy
    • how to pitch:1. Know that you will be rejected2. You will underestimate the number of times you will be rejected and how long it will take you to raise $.3. Ask rejecters for feedback (Real feedback)4. Ignore most of said feedback*5. Seek mentors and allies (note: most important point of this entire presentation) * Knowing what to ignore is not easy
    • fact:A Venture Capitalist looks at 2000 deals a year.
    • fact: A Venture Capitalist looks at 2000 deals a year.A Venture Capitalist Reads the first two paragraphs of the executive summary and reviews the financials (Aka EBITDA)
    • Fact: A Venture Capitalist looks at 2000 deals a year. A Venture Capitalist Reads the first twoparagraphs of the executive summary and reviews the financials (Aka EBITDA) The ones that fit - get set a side- the rest are thrown into a pile, never to be looked at again.
    • fact: A Venture Capitalist looks at 2000 deals a year. A Venture Capitalist Reads the first twoparagraphs of the executive summary and reviews the financials (Aka EBITDA) The ones that fit - get set a side - the rest are thrown into a pile, never to be looked at again. 50 receive Due diligence: < 10 are invested in
    • fact: A Venture Capitalist looks at 2000 deals a year. A Venture Capitalist Reads the first twoparagraphs of the executive summary and reviews the financials (Aka EBITDA) The ones that fit - get set a side - the rest are thrown into a pile, never to be looked at again. 50 receive Due diligence: < 10 are invested in “Many quality deals…but we’re not going to do them. They’re just not ‘Right’ for us”
    • common VC rejections “We’re just not that into you”• “we think you are too early for us”• “we have too many deals in our pipeline”• “we don’t understand the market”• “we’d like to see some local investment”• “you’re raising too much”• “you’re raising too little”• “if only you did a + b, we’d be a better fit…
    • conviction
    • more funding ideas• Friends & Family: your network is stronger than you know. (We are doing this now)• Hold a fundraiser: make it awesome. (We are combining this with F&F)• Sell your stuff on eBay: It’s a short term sacrifice.• Make money in your free time: Mowing lawns? Delivering pizza?• Hire a Grant Application specialist: they often work off of commission and there are small biz grants
    • myth #2:Startups are funded on a napkin
    • reality:Angels and VC’s: 15-40+ Page Business Plan Regulation A: 35-60+ Page Business Plan Regulation D: 35-60+ Page Business Plan Crowdfunding: 4-40+ Page Business Plan
    • myth #3:A good idea wins every time
    • slightly closer to the truth A good idea, good execution, good timing,perseverance and relentless sickening work ethic will win.
    • reality:Startups and small business owners, run businesses (duh)
    • reality: Startups and small business owners, run businesses (duh) Funding is limited by network: Unlikely toconnect with appropriate advisors and investors
    • reality: Startups and small business owners, run businesses (duh) Funding is limited by network: Unlikely toconnect with appropriate advisors and investors Raising Funds: Uncertainty of time, outcome, and expense
    • fact:It takes 3 months to file or prepare for fund raising
    • fact: It takes 3 months to file or prepare for fund raisingFund raising can take 6 months to 2 years for ONE round
    • There is nothing Fair about being an entrepreneur
    • fact: YOU build the future.“The best way to predict the future is to invent it.” –Alan Kay
    • Fact:Entrepreneurs are CRAZY
    • Because without us crazy,delusional people who do thisthe world would be a boring, stagnant place.
    • Both brilliant and both contributed so much to scienceTesla died broke Edison died rich
    • What of those with better ideaswho lacked the resources and weren’t heard at all?
    • what we need to change1. Encourage/educate more entrepreneurs and family & friends on how to invest in startups2. Think Tanks (BCI TT coming soon). Work together (Globally). Create Communities (Crowdfunding!)3. Create better entrepreneurial programs for Universities4. Host more events: showcasing startups, providing education, and to find investors
    • Bridge Capital Investments We are here to help We are passionate entrepreneurs that know how to provide the foundation (a community,capital and business development tools) to build successful companies from the ground upReach out to us:Kyle.Benson@bridgecapitalinvestments.comBen.Minges@bridgecapitalinvestments.com