All Rights Reserved - IEA 2013www.iranea.comStartup Fundraising
All Rights Reserved - IEA 2013Mohsen MalayeriCRAZY ABOUT STARTUPS!Founded Rapidworld -‐ 2007Co-‐founded Anetwork -‐ 2010Opera=on Manager -‐ Web Fes=val -‐ 2011Global Facilitator -‐ Startup Weekend -‐ 2012Lead Instructor -‐ SW NEXT -‐ 2012Opera=on Manager -‐ IEA -‐ 2013twiMer.com/malayeriP.com/mohsen.malayeri.oﬃcialwww.malayeri.melinkedin.com/in/malayerislideshare.net/malayeri
All Rights Reserved - IEA 2013Why be an entrepreneur?• To make money!• To be your own Boss!• To build something people want!• To change the world!• To give back!
All Rights Reserved - IEA 2013Idea ...Never Pitch Ideas to Investors!Ideas are easy! Execu=on is HARD!“ Ideas are a dime a dozen. People who implement them are priceless. ” -‐ Mary Kay AshThe world is full of incredible ideas that never go anywhere because great ideas are useless without someone full of passion to implement them.
All Rights Reserved - IEA 2013Copy Ideas?Copy ideas not products!No need to reinvent the wheel!
All Rights Reserved - IEA 2013Team ...They invest in teams not ideas!It is all about your team ...Vision + Commitment (NOT INVOLVEMENT)Where to ﬁnd your ideal team?School? MBA? StartupWeekend?Create your Minimum Viable Team (MVT)
All Rights Reserved - IEA 2013Size MaGers!How many members?1: Slow -‐ Lonely2: Magic! 1 builds, 1 sells3: great customer development team4: Crazy!5: WHAT??!Investors care about your background
All Rights Reserved - IEA 2013What else?They want to know about your advisorsYou need:MENTORSCOACHESADVISORSGOD FATHERSFRIENDSNETWORKCUSTOMERS
All Rights Reserved - IEA 2013Bootstrapping ...Create MVP!Stay Lean!Every RIAL Counts!Hire young -‐ hungry -‐ cheapNeed vs. Want
All Rights Reserved - IEA 2013*WikipediaStartup Finance Lifecycle
All Rights Reserved - IEA 2013Types ...Smart Money vs. Dumb Money (Hands-‐oﬀ Investors)Types of Investors:• FFF: Family, Friend, Fool• Angels: Usually successful entrepreneurs who are inves=ng their own money from the industry they proﬁted from to startups as seed inves=ng.• VC: Venture capital is the funding resul=ng from professional managers inves=ng other people’s money in startups and early-‐stage companies in order to generate high rates of return.
All Rights Reserved - IEA 2013Angel vs. VCAngel VCLess Money More MoneyFor Fun For ProﬁtQuick Slow (~12months)No Control Lots of ControlNever ask NDA from your investor
All Rights Reserved - IEA 2013Investor Pitch ...Tell Your StoryMomentum -‐ Vision -‐ TeamGain trust in your team -‐ product -‐ marketDon’t over sell (or sell too hard)
All Rights Reserved - IEA 2013Pitch Deck...Elevator PitchProblemSolu=onMarket SizeBusiness ModelCompe==onGo-‐to-‐Market StrategyTeam / HireMoney / Milestone
All Rights Reserved - IEA 2013ValuaOon ...Investment is about how much you needStartup valuaOon is an artNo one wins in business plan compe==on (Steve Blank)You need validated business model with trac=on not Business Plan
All Rights Reserved - IEA 2013create a dog race to increase valuation