Funding Through Angels and VC's Sunny Gupta – CEO, Apptio
Topics <ul><li>Starting a Company </li></ul><ul><li>Fundraising Examples </li></ul><ul><li>Funding Options </li></ul><ul><...
Starting a Company <ul><li>Deciding to leave a great job & career </li></ul><ul><ul><li>Entrepreneurial  “DNA” , have fina...
My Story <ul><li>Started “Vigor” in 1996  </li></ul><ul><ul><li>No Angel/No VC – self funded via consulting $ </li></ul></...
Fund-Raising - iConclude January 2005 1 Week July 2005 3 Months <ul><li>Completed Team  </li></ul><ul><ul><li>VP Marketing...
Fund-Raising - Apptio October 2007 1 Week June 2009 < 1 month <ul><li>Completed Team  </li></ul><ul><li>Great Market tract...
Funding Options <ul><li>Not all businesses are venture businesses </li></ul><ul><ul><li>Big market opportunity, great team...
What Drives Good Fundraising? <ul><li>Great Team, Market Opportunity, Execution </li></ul><ul><li>Strategic Positioning </...
Build A Great Company <ul><li>Customer Validations </li></ul><ul><li>Great Team </li></ul><ul><li>Start Selling Early  </l...
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Funding through Angels and VC's - Sunny Gupta

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Funding through Angels and VC's - Sunny Gupta

  1. 1. Funding Through Angels and VC's Sunny Gupta – CEO, Apptio
  2. 2. Topics <ul><li>Starting a Company </li></ul><ul><li>Fundraising Examples </li></ul><ul><li>Funding Options </li></ul><ul><li>What Drives Good Fundraising? </li></ul><ul><li>Build A Great Company </li></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential
  3. 3. Starting a Company <ul><li>Deciding to leave a great job & career </li></ul><ul><ul><li>Entrepreneurial “DNA” , have financial upside, grow dramatically </li></ul></ul><ul><li>Mental toughness </li></ul><ul><li>Compelling market opportunity </li></ul><ul><ul><li>Validations with customers who are willing to pay money for? </li></ul></ul><ul><li>Incredible team that is complementary </li></ul><ul><li>Financing Strategy </li></ul><ul><ul><li>Self funded, Customer $$, Angels, VCs </li></ul></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential
  4. 4. My Story <ul><li>Started “Vigor” in 1996 </li></ul><ul><ul><li>No Angel/No VC – self funded via consulting $ </li></ul></ul><ul><ul><li>Used consulting revenues to drive product </li></ul></ul><ul><ul><li>Acquired in 1998 by Rational Software – Public Company </li></ul></ul><ul><li>Founded “iConclude” in 2005 – 12M Raise </li></ul><ul><ul><li>Angel & VC -> Series A (Madrona) -> Series B (Greylock/Shasta) </li></ul></ul><ul><ul><li>Acquired in 2007 by Opsware/HP – 70M Exit </li></ul></ul><ul><li>Founded “Apptio” in 2007 – 37.5M Raise </li></ul><ul><ul><li>Series A (Madrona/Greylock) -> Series B (Shasta/Andressen) -> SeriesC </li></ul></ul><ul><ul><li>Growing & scaling the business </li></ul></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential
  5. 5. Fund-Raising - iConclude January 2005 1 Week July 2005 3 Months <ul><li>Completed Team </li></ul><ul><ul><li>VP Marketing </li></ul></ul><ul><ul><li>VP Development </li></ul></ul><ul><ul><li>Sales Team & proven model </li></ul></ul><ul><li>Shipping Product </li></ul><ul><li>4 Paying Customers </li></ul><ul><li>1M+ Pipeline </li></ul><ul><li>Capital Efficiency </li></ul>April 2006 1 Month Venture can help you build bigger value faster = 2007 February = 70Million <ul><li>Team & credibility - 2 </li></ul><ul><li>Customer pain point </li></ul><ul><li>5+ customer validations </li></ul><ul><li>Product Mockup </li></ul><ul><li>Product ship timeline </li></ul><ul><li>Financial Model </li></ul>Angel = 500K VC Series A = 2.5M <ul><li>Expanded Team - 8 </li></ul><ul><li>Alpha Product </li></ul><ul><li>2 Early Adopter Customers </li></ul><ul><li>20+ Customer Validations </li></ul><ul><li>Go-to-market model </li></ul>Series B = 9M
  6. 6. Fund-Raising - Apptio October 2007 1 Week June 2009 < 1 month <ul><li>Completed Team </li></ul><ul><li>Great Market traction </li></ul><ul><li>50+ customers </li></ul>July 2010 1 Month <ul><li>Team & previous experience </li></ul><ul><li>Customer pain point </li></ul><ul><li>40+ customer validations </li></ul><ul><li>Product Mockup </li></ul><ul><li>Product ship timeline </li></ul><ul><li>Financial Model </li></ul>VC Series A = 7M VC Series B = 14M <ul><li>Expanded Team - 30 </li></ul><ul><li>Shipping Product </li></ul><ul><li>Exceeded plan by 300% </li></ul><ul><li>15+ Paying Customers </li></ul><ul><li>Go-to-market model </li></ul>Series C = 16.5M
  7. 7. Funding Options <ul><li>Not all businesses are venture businesses </li></ul><ul><ul><li>Big market opportunity, great teams, time to scale </li></ul></ul><ul><li>Bigger Pie Theory - Dilution </li></ul><ul><li>Strategic Value Add </li></ul><ul><ul><li>Customer introductions, Business plan, Venture Introduction, scale, Recruit board members </li></ul></ul><ul><ul><li>Exit options </li></ul></ul><ul><li>Control & Governance </li></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential
  8. 8. What Drives Good Fundraising? <ul><li>Great Team, Market Opportunity, Execution </li></ul><ul><li>Strategic Positioning </li></ul><ul><li>Validation of the market opportunity </li></ul><ul><li>-------------------------------------------------------------- </li></ul><ul><li>Competition, Backdoor references </li></ul><ul><li>Series A – Bet on team, market </li></ul><ul><li>Series B – Bet on team, market validation, execution </li></ul><ul><li>Series C – Validated customer/revenue ramp </li></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential
  9. 9. Build A Great Company <ul><li>Customer Validations </li></ul><ul><li>Great Team </li></ul><ul><li>Start Selling Early </li></ul><ul><li>Frugality </li></ul><ul><li>Experiment & Fail Fast </li></ul>© 2008 Apptio Inc. All rights reserved. Proprietary and confidential

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