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How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
How to approach vc's and angels
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How to approach vc's and angels

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  • 1. } 1. They want to make money. } 2. Their most precious asset is their time.
  • 2. } Proof of concept (POC) } Market validation } Regulatory path } Reimbursement plan } IP including FTO } Customer economics } Payer economics } Believable plan } Team to get there } Exits / comparables
  • 3. } Answers to their objections •  Address their biggest objections up front } Be ready for diligence •  Advisors / prospective customers to call. •  Details of POC •  Detailed financial plan •  Detailed development plan •  FTO analysis •  License / option agreements…
  • 4. } Because you need >$10 MM } Or >$3 MM in any round
  • 5. } The good •  Deep pockets, networked to other investors •  Sophisticated board members (sometimes) } The bad and the ugly •  Bad board members (sometimes) •  They like to spend money. •  They may replace you. •  They may wipe you out. •  They want it nearly done before they give you money
  • 6. } Make sure they are appropriate: •  Have money •  No conflicts •  Similar portfolio companies •  Right sized } Get a warm introduction •  CEO of current / former portfolio company •  Any former CEO, other VC, other entrepreneur… } Write small email description.
  • 7. } Bring your team, dress well, arrive early, ask how much time you have } Stand up. Present in 20 minutes. } Have answers / back-up slides •  OK to schedule a follow up meeting for deep dive } Ask for when you should follow up } Respond immediately to diligence requests. } If they are not doing work, they have passed.
  • 8. } You only need 1-3 rounds of <$3 MM each } You want to make some money at the exit.
  • 9. } The good •  Straightforward terms (1x pref., non-participating…) •  Rolling closes •  Follow-on rounds are easy •  No VC games, no forced CEO replacements •  You own more at exit } The bad and the ugly •  No deep pockets •  Herding cats •  Don’t expect a big salary
  • 10. } Gust.com to find groups } Find a sponsor } Go to a meeting or two } Start small (<$2 MM) } Pre money <<$5 MM } Make sure you have the right sponsor } Prepare, apply, present
  • 11. } Bring your team, dress well, arrive early, } Present in allotted time. } Have answers / back-up slides for all questions. •  OK to refer things to diligence meeting } Respond immediately to set up diligence meetings
  • 12. } Don’t ask a group to sign an NDA } Don’t use more than a handful of words on a slide and do not use any small font sizes } Don’t claim you have no competitors } Don’t think that you will grow by “social media” or “going viral”
  • 13. } What if you need $1 MM now and then $10+ MM and too early for VC’s } Most angel groups will not do it. } Need super angels, early VC’s, Angel friendly VC’s, friends and family, SBIR

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