Alternative Sources of Funding | Charlie Kiser


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Charlie Kiser presented at the Washington, DC Economic Partnership's (WDCEP) & Small Business Administration's (SBA) Alternative Sources of Funding event held on September 26, 2013. Mr. Kiser presented on the cycle of fund raising (bootstrapping & venture capital), incubators & accelerator and resources for technology companies.

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Alternative Sources of Funding | Charlie Kiser

  1. 1. FinancingYour IdeaFinancingYour Idea Charlie Kiser Chief Reality Officer SellStrategy Consulting
  2. 2. SummarySummary Cycle of Fund Raising Types of Fundable Businesses  Who are the Investors? Trends In Early Stage Financing State Initiatives How do I get started? Startup Resources
  3. 3. Cycle of Fund RaisingCycle of Fund Raising Bootstrap – Self Funded $5-50K Friends and Family - $25-100K Seed Stage/Angel Investors - $50-250K ◦ Incubator/Accelerator $25-50K “A Round”Venture Capital – $300-2mm “B Round/Follow On”Venture Syndicate - $2mm-5mm “C Round” $10mm-50mm, (Revolution) Exit – IPO, Acquisition
  4. 4. Types of Fundable BusinessesTypes of Fundable Businesses Disruptive ideas that address a scalable market and have global impact or reach Ideas that challenge existing structure that has been resistant to change Health IT, Education, Policy/Politics, Cloud Big Data, Security NOT Fundable – Lifestyle Business- Salon, Retail, Coffee Shop, Food Truck, Services, Staffing.
  5. 5. Who are the Investors?Who are the Investors? Angel InvestorsAngel Investors Interested in Ideas they are familiar with Like to Invest where they also add value Often have sold business but are in holding pattern Will come in after Lead Investor has issued term sheet Where are they? Dingman Center, Pitch Events,Tech Meetups etc.
  6. 6. Who are the Investors?Who are the Investors? Incubator/AcceleratorIncubator/Accelerator Offer mentorship and hands on assistance Provide $25-50K in exchange for < 10% stake in business Require a 2-6 month commitment on site Some fee for space usage Work to help build team and get traction Promote to otherVCs Good for inexperienced startups Acceleprise, Fishbowl Labs,The Fort, 1776
  7. 7. Who are the Investors?Who are the Investors? Venture CapitalVenture Capital Interested in Team, Product and Market Want to be the “first mover” Work with otherVC’s to arrange syndicate Offer firstValuation of your business Grotech, CORE, Revolution, In-Q-Tel, Valhalla, New Markets, NEA
  8. 8. Trends In Early Stage FinancingTrends In Early Stage Financing TraditionalVenture Cap is changing Angel Investors taking larger roles Cost of development is shrinking JOBS Act opening door to crowdfunding, general solicitation and potential access to public markets Incubator/Accelerator Overload
  9. 9. State InitiativesState Initiatives ◦CIT Gap Funds- ◦State Initiative fundingVA based startups- Act as Angel andVC ◦Jennifer Daniels ◦InvestMaryland ◦Raised $84 MM for MD based startups. LeveragingVC’s and state agencies to disperse funds
  10. 10. How do I get started?How do I get started? Exercise your Idea Develop prototype product or service Find initial traction – “Ties for Rent” ITERATE Share your idea- harness the “human cloud” Pitch Quit your job, commit and don’t look back!
  11. 11. ResourcesResources  - Adam Zuckerman Dc Tech Meetup – Peter Corbett Tech Cocktail – Frank Gruber TechCrunch Mashable , AngeList Paul Singh, Jonathon Perrelli, Evan Burfield, Glen Hellman
  12. 12. Charlie Kiser  @charliekiser