What You Need To Know About Raising
What You Need To Know About Raising
Venture Capital
November 2008

Who Is DFJ Gotham Ventures?
Danny Schultz Ross Goldstein Jed Katz Thatcher Bell Mark Davis
Focus Sectors
Focus Sectors • Digital Media
Digital Media • Mobile Technologies
Mobile Technologies
• Financial Technologies • Network Infrastructure
• E‐commerce
Early Stage
Early Stage • First institutional round
First institutional round
• Nominal or no revenue
• Demonstrable technology
Global Presence
Global Presence • Leverage DFJ Network
Leverage DFJ Network
www.dfjgotham.com
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Member Of Powerful And Growing DFJ Network
23 funds, >$6 billion in capital
150 professionals, 600 portfolio companies
Unique access, insight and deal flow
i i i h d d l fl
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Markpeterdavis.com
You can find a detailed
manual on how to raise
venture capital on my blog:
www.markpeterdavis.com
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Is VC Right For Your Startup?
How To Finance Your Startup
Negative
InvestmentInvestment Investment
(Outside (Outside (Outside
Capital) Capital) Capital)
Cash Flow From
Operations
During Growth
During Growth
Organic
(Re‐Invest Either
Operating Cash)
O ti C h)
Positive
Low High
Potential For Competition
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Why VC Is Helpful?
Low High
Friends & Venture
Angels
Family Capitalists
Capital
Experience
Connections
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What Materials Do You Need?
Location
Mission
O
Overview
i
Addressable Market
Competitive Landscape
Executive
Summary
Barriers Presentation
Achievements
Financials
Capital Raised
Objectives
Management Bios
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Common Mistakes In Materials
Location
Be sure to include these!
Mission
Addressable Market Not market size!
Competitive Landscape State why you’re better!
Competitive Landscape yy
Barriers You probably have more than you think!
Detail on how to create each
Detail on how to create each
of these at:
www.markpeterdavis.com
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Getting The Meeting
Most Effective Direct
Introduction
Mutual
Contact
LinkedIn
Cold Email
Cold Email
Spam
Least Effective
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Objective Of First Meeting
What is it?
To get the second meeting.
To get the second meeting
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Investment Overview Slide
Typical Non-Linear Meeting Set The Tone Up Front
• Product: Technology
Product? that…
• Addressable Market:
Market? $2.5B
• Competitive: Significant
Competition? technology barrier
• Team: 35 years relevant
Team? experience
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What’s After The First Meeting?
The Due Diligence
Phase
Meet The Company
Experts References
Team Materials
Facilitate proactively!
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Maintain Momentum
Industry News
Milestones
Internal
Materials
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Signs You’re Close To A Term Sheet
Can you come
Can you come How do you feel
How do you feel
meet the rest of about these
my partners?
my partners? terms?
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What To Expect In A Term Sheet
An Exploding Offer
y
Exclusivity
30 day Due Diligence
p g
Participating Preferred Stock
Liquidity Preference
Founder s Equity Vesting
Founder’s Equity Vesting
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The Relationship Changes
Now On The Same Side Of The Table
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Contact Info
Mark Davis
DFJ Gotham Ventures
(212) 279 3980
(212) 279‐3980
Blog: markpeterdavis.com
l k d i
twitter.com/markpeterdavis
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