Funding a startuppresentation to Venture FellowsFebruary 16, 2011
By Nick Ducoff
A Little Background On Me
Choose Your Own Adventure
FFF (Friends, Family, Fools)
How We Did It At Infochimps
What You Can Do
Q & A
Raised $1 million in friends and family
Angel investor and advisor
Sold assets to Store to Door
Sold some assets to Small World Labs
Represented 25 startups in raising over $250 million*
*1 outlier, did a $100 million Series A raise during the bubble
Raised $375,000 in angel financing and $1.25 million in VC
A little background on me
You don’t need money
Zero marketing spend
Oh, you really do need money?
Consulting on the side, but not the other way around
Credit cards and bank debt
Can you cash flow before you go broke?
If not, quit now
If you are stubborn, go to next slide
Who is the fool?
If you think your [____] is annoying now…
No expectation of being repaid is a myth
You have to live with these people the rest of your life
Make sure they are accredited
$1 million in net assets excluding residence; or
$200K/yr for single filer or $300K/year for joint filers
If not, rescission, which could come out of your pocket!
http://www.youtube.com/watch?v=hAuSTQUa3tM (A Bronx Tale clip NSFW)
FFF (Friends, Family, fools)
Distinguished from FFF
Regularly make investments in private companies
Might provide additional value; more than dumb money
Angels with LPs (“super angels”) are really more like VCs
Where are these angels?
Your network! Ask for advice, not money!
Raising $ from respected angels signals VCs
Raise $ in convertible debt so it is nice and clean for VCs
Don’t even try raising VC if you can’t raise angel financing
Be self aware, are you really VC fundable?
Raising VC does not come without costs
Raising VC is easy if you’ve built and sold a company for millions of dollars
Oh, you haven’t?
Get the right intro
Start local, but go west
Appear bigger than you are
Sell your stock, not your product
Get to a partner at the right time
Subscribe to TechCrunchRSS
Attend startup meetups
Work at a startup
Get domain expertise in something
Build something small (2taps.com)
Start a personal board of advisors
What you can do