Fact driven funders
• They manage money of others and have ROI as the main goal
• Focus on evidence:
– Business opportunity
– Team, team, team
• The ideal investment has:
A working product
A growing market
A launching customer
An experienced team
€100k to €500k (angels, crowd)
Prototype stage, first customers, first employees
Series A/B/C: €500k to €5M (VC)
Idea stage, searching for business model, founding team only
€10k to €50k (own money, FFF)
Scaling stage, growing revenue, growing team
€.. (IPO, acquisition)
Serious challenger in the market
The search for funding (1)
• Do you have the ambition?
• Can your startup become a real business?
• What stage you are in?
• Define your risk profile?
• How much funding you need?
• What are you willing to share / give away?
• What do you need besides funding?
The search for funding (2)
1. Make your materials: one pagers, slide deck, business plan
2. Make a list of potential funders (desk research)
3. Visit events where you can meet potential funders (field research)
4. Approach the least appealing funders first and practice
5. When you have enough feedback and confidence, approach the
most appealing funders
Be critical to yourself, if you do not find investor’s interest maybe it is
because of you!
Making the deal: Term Sheet
• Negotiate the terms for funding
Type of stock
Anti Dilution Rights
Management and CEO replacement
Ambition for exit
• If no experience: always get an advisor!!
Making the deal: Due Diligence
• Due diligence
• Do your own due diligence!
Making the deal: Bring in the lawyers!
Guarantees and disclosing
Etc. etc. etc.
Making the deal: Champagne!!
– Day at the notary!
– Lot of signatures!
– Don’t forget to celebrate!!
• The investment process will take 6
to 18 months.
• Put everything on paper and assume
worst case scenarios.
• Never sign anything until you fully
• Do not give away too much in the
pre seed / seed stage.
• Negotiate fair and respectful, the
investor will be your future partner.
• Remember: you can only give away
Case: Aerospace Investment
Part 1: Preparation (20 minutes)
- Form groups of 2 (founders versus investors)
- Choose your counterpart
- Each group discusses their own targets and negotiation strategy
Part 2: Negotiation (45 minutes)
- Start negotiating.
- All substantive terms need to be negotiated.
- No deal when BATNA is below 45 points.
- Do not forget to evaluate the process.
Part 3: Evaluation (45 minutes)
- Each groups shares their Score Sheet and Process Evaluation.
- Scores are evaluated.
- Practical experiences are shared.
• Valuation / equity percentage
• Type of stock
– Preferred: convertible or redeemable (also callable)
Anti Dilution Rights / First right of refusal
Vesting of Shares
CEO Replacement Provision
No Shop Provision