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Investor Readiness Workshop

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A presentation I gave at mesh 2010 on getting ready for investors

A presentation I gave at mesh 2010 on getting ready for investors

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  • 1. getting your startup investor-ready
  • 2. introduction mark macleod CFO Advisor Investor
  • 3. thinking about raising capital Big Rich Lifestyle Autonomy Vision what are your goals
  • 4. do I want outside capital ? time consuming pros cons move quicker think bigger strategic freedom build a team access smarts loss of control failure rate alignment issues forces a big outcome
  • 5. how much do I need ? stage amount key milestones startup $0-50K prototype, wireframe & customer development seed < $500K launch of beta product & early traction Series A $1.5M + growth in user base, build team, start revenue Series B $5M + serious growth, commercialization
  • 6. fund raising checklist pro formas investor pitch executive summary
  • 7. fund raising checklist The pro forma typically includes: core financials assumptions hiring plan department plans capital expenditure plan bonus... per user economics break-even point key metrics test different assumptions involve key people play w. revenue scenarios
  • 8. fund raising checklist The investor pitch & executive summary About your company Team Problem Market (size, landscape, competition) Your Solution Business Model Go-to-Market Forecast Use of Proceeds Summary tell a story about the problem you solve.
  • 9. what you must know Business - what makes you unique? Industry - key motivation for buying your stuff Numbers - metrics, financials, cash burn Comparables - competition, relevant exits Strengths & Weaknesses - don’t hide them! Strategy - how will you build a big, valuable business? Audience - why are you pitching me? Needs - how much money until exit?
  • 10. what you must have Traction… Users Usage Metrics Feedback
  • 11. sample timeline prep your investor package & make your hit list practice, practice, practice parallel, not serial send out your teaser book meetings t-minus 2 - 4 weeks t-minus 1 week Launch
  • 12. sample timeline 1st meetings, feeling-out process 2nd meetings, in person with more than 1 partner early diligence weeks 2 & 3 weeks 4 & 5 weeks 6-8
  • 13. sample timeline ALL PARTNERS MEETING term sheet docs & closing week 9 week 10 weeks 11-15 sleep! week 16
  • 14. angels & VCs Strained relationship Same end goal: returns Need different approaches for each Very different needs & objectives Angel - time to break-even, year 1 burn, capital efficiency VC - opportunity size, team Priorities
  • 15. fundraising tips strategic what to expect be prepared time fundraising to buzz go local first you will be rejected (a lot) smaller amounts 6 months + (VC)
  • 16. fundraising tips play the game in your corner love @ 1 st sight go for the “no” create urgency advisors no agents angels are your friends
  • 17. who’s got money
  • 18. resources www.oce-ontario.org/Pages/CInvest.aspx www.angelinvestor.ca/Find_Angels.asp www.extremevp.com/extreme-university-2010 www.askthevc.com/blog/index.php cdixon.org venturehacks.com
  • 19. q & a Questions?
  • 20. thank you mark macleod twitter: @ startupcfo blog: startupcfo.ca

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