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Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
Startup Cfo   Bdo Term Sheet Event 051109
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Startup Cfo Bdo Term Sheet Event 051109

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A presentation on getting to the term sheet. Gave it at an event hosted by BDO.

A presentation on getting to the term sheet. Gave it at an event hosted by BDO.

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  1. Nov. 5, 2009 Perspectives on the Term Sheet www.startupcfo.ca
  2. THE GOOD OLD DAYS (?)… Copyright © 2009 – StartupCFO Enterprises Inc.
  3. NOW Copyright © 2009 – StartupCFO Enterprises Inc.
  4. THE PATH TO A TERM SHEET Copyright © 2009 – StartupCFO Enterprises Inc. Image: http://www.flickr.com/photos/philwirks/2219686874/
  5. The Process Copyright © 2009 – StartupCFO Enterprises Inc. New Deal Received Deal Team Formed (Sponsor + 1) Interesting + Fit? Deal Memo to Partners Company Presents to Partners Questions Raised Due Diligence Company Meetings + Term Sheet Investment Memo Investment Decision Legals & Cash Out NO: feedback to company + deal tracking YES Interesting YES NO: feedback to company + deal tracking NO: feedback to company + deal tracking YES YES
  6. The Process (Cont.) <ul><li>Know your </li></ul><ul><ul><li>Business – what makes you unique? </li></ul></ul><ul><ul><li>Industry – key factors, motivations for buying your stuff </li></ul></ul><ul><ul><li>Numbers – metrics, financials, cash burn </li></ul></ul><ul><ul><li>Comparables – competition, relevant exits </li></ul></ul><ul><ul><li>Strengths & weaknesses – Don’t hide them </li></ul></ul><ul><ul><li>Strategy – how will you build a big, valuable business quickly? </li></ul></ul><ul><ul><li>Audience – why are you pitching me? </li></ul></ul><ul><ul><li>Needs – how much money till exit? </li></ul></ul>Copyright © 2009 – StartupCFO Enterprises Inc.
  7. The Process (cont.) <ul><li>A sample timeline: </li></ul><ul><li>Weeks -4,- 2: Prep your deck, exec summ, pro formas. Assemble your hit list </li></ul><ul><li>Week -1: Practice </li></ul><ul><li>Week 1: Launch your attack – parallel, not serial. Send out your teaser. Book 1 st meetings. </li></ul><ul><li>Week 2, 3: 1 st meetings </li></ul><ul><li>Week 4, 5: 2 nd meetings – in person. > 1 partner </li></ul><ul><li>Weeks 6 – 8: Early diligence </li></ul><ul><li>Week 9: ALL PARTNERS MEETING </li></ul><ul><li>Week 10: Term sheet </li></ul><ul><li>Weeks 11 – 15: Docs & closing </li></ul><ul><li>Week 16: Sleep! </li></ul>Copyright © 2009 – StartupCFO Enterprises Inc.
  8. Fundraising tips & truisms <ul><li>Love at 1 st sight </li></ul><ul><li>Go for the “no” </li></ul><ul><li>Local first </li></ul><ul><li>Be prepared! </li></ul><ul><li>Time is not on your side - Create urgency </li></ul><ul><li>Time around something that generates momentum / buzz </li></ul><ul><li>Get good advisors </li></ul><ul><li>You will be rejected – a lot! </li></ul><ul><li>6 months – maybe more these days </li></ul><ul><li>Know who you’re pitching and why </li></ul>Copyright © 2009 – StartupCFO Enterprises Inc.
  9. Fundraising today… <ul><li>Takes longer </li></ul><ul><li>Flat is the new up. Down is the new flat </li></ul><ul><li>VC alphabet: B level traction to raise an A round </li></ul><ul><li>Smaller amounts </li></ul><ul><li>Angels are your friend </li></ul><ul><li>Get to revenue faster </li></ul><ul><li>Funding landscape (in Quebec) will be changing next year </li></ul>Copyright © 2009 – StartupCFO Enterprises Inc.
  10. Where fundraising derails… <ul><li>Opportunity size </li></ul><ul><li>No competition </li></ul><ul><li>Don’t know the game </li></ul><ul><li>Valuation </li></ul>Copyright © 2008 - Mark MacLeod
  11. Term sheets that suck <ul><li>Too complex </li></ul><ul><li>Premature </li></ul><ul><li>Incomplete or orphans </li></ul><ul><li>The babysitter </li></ul>Copyright © 2009 – StartupCFO Enterprises Inc.

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