SlideShare a Scribd company logo
1 of 23
Download to read offline
Visit
evisors.com
to browse all mentors who
can help you with:
• Informational Interviews
• Resumes & Cover Letters
• Mock Interviews
…and more!
Hosted by: Career Advisors on Demand..com/webinars
Financing a Startup
The Who, What, When and How’s
featuring:
Michael Horowitz
Associate
Hosted by:
Caitlin Quan
Evisors Marketing & Operations Associate
Hosted by: Career Advisors on Demand..com/webinars
Disclaimer
Everything you are about to hear represents
my own personal opinions and not those of
my employer or colleagues.
For the sake of time, I’m also generalizing a
lot – don’t take any of my comments as
applying specifically to any one firm.
Hosted by: Career Advisors on Demand..com/webinars
Agenda
1. About Me
2. Sources of Capital – Know Your Audience
3. How to Pitch a VC
4. Financing Considerations
5. Q&A
Hosted by: Career Advisors on Demand..com/webinars
About Me
• Associate @ Bessemer
• University of Pennsylvania | 2010
• Goldman Sachs (SSG) | 2009
• BlackRock (PMG) | 2008
• Weather Risk Solutions (Startup) | 2006 - 2010
Hosted by: Career Advisors on Demand..com/webinars
Before you raise money…
• Do I really want to do this?
– Lifestyle change
– Committing to a larger exit
– Dilution
– Loss of control
• And is now the right time?
– Do I have a team? Product? Customers?
– Am I approaching key inflection points that might significantly raise the value of my
business?
• That said…
– VC’s can add lots of value:
• Cash to grow more quickly
• Recruiting help
• Customer or advisor intros
• Strategy and benchmarking advice – we’ve been there before!
Hosted by: Career Advisors on Demand..com/webinars
Where should you look?
• How much do you need?
– <$50k
• Friends and family – Common source for initial funding; be wary of ruining relationships
• Seed programs (Y Combinator, TechStars, RockHealth, ImagineK12…) – money, space and mentoring
– $50 - 250k
• Individual angel investors - often past or current CEOs or successfully founders
– $250k - $1m
• Syndicates of angel investors, super angel funds (SV Angel, Chris Sacca, Box Group, 500 Startups…)
– $1m - $3m
• Early-stage venture funds (First Round, True Ventures, Felicis Ventures, Thrive, Lerer Ventures…)
– $3m - $20m
• Venture funds (Bessemer, Accel, Sequoia, Benchmark, Matrix, Redpoint, NEA…)
• What about…
– Banks
• Banks generally want to lend against predictable, proven businesses
– Crowdfunding
• Kickstarter – non dilutive funding
• FundersClub, Seedinvest and others
– AngelList
Hosted by: Career Advisors on Demand..com/webinars
What do these people want?
• Know Your Audience
– Angel investors are looking for a return, but generally are looser with terms than venture firms
(no board seats, small positions, limited protections)
– Venture funds will be more heavily involved – on your board, owning more of the company,
obtaining more rights and protections
– Angels and funds have sector and stage focuses – be sure they fit with your company!
• Also consider…
– What is the fund’s approach to making follow-on investments (and does it have the funds)?
– Who is the specific person you will be working with and how well do you get along?
– What are your/the investor’s expectations for how involved they will be?
…and how can I find them?
• NETWORK, NETWORK, NETWORK
– Most investors get way more inbound inquires than they can spend time on
– We don’t have time to read and evaluate long business plans (or even short ones)
– The best way to get in touch is through a connection – LinkedIn, startup lawyers, connections
in the VC’s portfolio, social media engagement, conferences…
– Always be ready with a QUICK (30 second) elevator pitch
Hosted by: Career Advisors on Demand..com/webinars
How to pitch an investor
• The Perfect Pitch Deck
– ~10 slides
– Clearly stated problem – is this something people care about?
– Market – is the market big enough?
– Solution (tech/product explanation) – demos are good if they are short and they work – just
convince me you’re taking an interesting / reasonable approach
– Team – do you have the right people for the job?
– Business model – can this make money?
– Competition – who else is doing it and why are you better?
– Traction – share whatever data you have that shows your business is working
– Financial info – have you raised money before? What are the company’s financials?
• Common mistakes
– “We have no competition”
– “We conservatively project $100m revenue in 3 years”
– “If we just get 1% of this massive market we’ll be a big company…”
– “I can’t tell you more until you sign an NDA”
Hosted by:See the rest at evisors.com/webinars/webinar/73
What are you being judged upon?
• A lot of it is YOU!
• Then it depends on the stage of the company
– Pre-product: Team + Market
– Pre-launch product: Team + Market + Product
– Recently launched product: Team + Market + Product + Initial Traction
• What is “traction”?
– Downloads/Signups/Registrations
– User engagement (# of visits, frequency of visits, number of interactions/visit…)
– Monetization (free to paid %, customer lifetime value, churn…)
– User acquisition cost
• BVP has some great resources:
– 10 Laws of Cloud Computing
– 10 Laws of eCommerce
Hosted by:See the rest at evisors.com/webinars/webinar/73
What to know about financing
• Convertible Notes vs. Priced Rounds
– Convertible notes delay pricing of the round (generally for a discount in the future)
– Deal docs are simpler
– Can work out poorly in tough financing environments
• Liquidation Preferences
– Common, Preferred and Participating Preferred
• Option pools and vesting
– Often come out of the founder’s stake
• Protective provisions:
– Standard blocks on exits, issuance of new stock, sale of assets…
– Anti-dilution protection
– Redemption rights
– ROFR’s
Hosted by:See the rest at evisors.com/webinars/webinar/73
A note on hardware startups
• A lot of the pre-presentation questions were about hardware startups
• They still get funded, but it can be difficult
• Lower margins than software, require a lot of $$$ to scale
• When you can build Instagram on a few million…
• Some current successful hardware startups: Nest, Lytro, e la
carte, Sonos, Jawbone, Fitbit, Pinnacle Engines*
• Who’s funding them? Redpoint, Andreessen, Foundry, KPCB, Khosla, *Bessemer…
• Kickstarter can be your best friend here – prove demand, raise non-dilutive funds
• Lemnos Labs – hardware incubator
Hosted by:See the rest at evisors.com/webinars/webinar/73
Connect
Book your one-on-one session with Michael at
www.evisors.com/expert/1975
Michael Horowitz
Associate
Hosted by:See the rest at evisors.com/webinars/webinar/73
Questions & Answers
Hosted by:See the rest at evisors.com/webinars/webinar/73
Questions & Answers
Question 1:
Is there an age limit where venture capital
firms are reluctant to invest in?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 2:
Can you advise on how to gauge the timing
and depth of financing?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 3:
Are there any models that combine crowd-
funding with angel investing?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 4:
What methods are there to measure the cost
of customer acquisition?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 5:
Would you suggest working for a few years
vs. moving straight into your venture?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 6:
Situational funding question
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 7:
How do you create proposals that fit the
objectives of the person who has the
money?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Questions & Answers
Question 8:
Are there important cultural differences
between the USA and Europe when raising
capital?
Hosted by:See the answer at evisors.com/webinars/webinar/73
Get the latest updates on upcoming
webinars by following us:
Register for live webinars and view all our recordings at:
www.evisors.com/webinars
facebook.com/Evisors
twitter.com/Evisors
pinterest.com/Evisors
linkedin.com/company/Evisors
Hosted by:See the rest at evisors.com/webinars/webinar/73

More Related Content

More from Evisors

Networking Your Way to a Job
Networking Your Way to a JobNetworking Your Way to a Job
Networking Your Way to a JobEvisors
 
Mastering the Stock Pitch
Mastering the Stock PitchMastering the Stock Pitch
Mastering the Stock PitchEvisors
 
Take a Risk and Start Your Company
Take a Risk and Start Your CompanyTake a Risk and Start Your Company
Take a Risk and Start Your CompanyEvisors
 
How to Get a Job at Google
How to Get a Job at GoogleHow to Get a Job at Google
How to Get a Job at GoogleEvisors
 
Getting a Job in the Tech Industry
Getting a Job in the Tech IndustryGetting a Job in the Tech Industry
Getting a Job in the Tech IndustryEvisors
 
Careers in Education and Research
Careers in Education and ResearchCareers in Education and Research
Careers in Education and ResearchEvisors
 

More from Evisors (6)

Networking Your Way to a Job
Networking Your Way to a JobNetworking Your Way to a Job
Networking Your Way to a Job
 
Mastering the Stock Pitch
Mastering the Stock PitchMastering the Stock Pitch
Mastering the Stock Pitch
 
Take a Risk and Start Your Company
Take a Risk and Start Your CompanyTake a Risk and Start Your Company
Take a Risk and Start Your Company
 
How to Get a Job at Google
How to Get a Job at GoogleHow to Get a Job at Google
How to Get a Job at Google
 
Getting a Job in the Tech Industry
Getting a Job in the Tech IndustryGetting a Job in the Tech Industry
Getting a Job in the Tech Industry
 
Careers in Education and Research
Careers in Education and ResearchCareers in Education and Research
Careers in Education and Research
 

Recently uploaded

Personal Branding Exploration for Career
Personal Branding Exploration for CareerPersonal Branding Exploration for Career
Personal Branding Exploration for Careerwhiteheadnakiyyah
 
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...johnhartphilly
 
Joshua Bicknell - Writing Portfolio (2024)
Joshua Bicknell - Writing Portfolio (2024)Joshua Bicknell - Writing Portfolio (2024)
Joshua Bicknell - Writing Portfolio (2024)Joshua Bicknell
 
Hariharan M meriity online marketing internship project
Hariharan M meriity online marketing internship projectHariharan M meriity online marketing internship project
Hariharan M meriity online marketing internship projectmhariharan200308
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashonHolloway
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsJulia Kaye
 
Full Sail projects and portfolio. edits after feedback
Full Sail projects and portfolio. edits after feedbackFull Sail projects and portfolio. edits after feedback
Full Sail projects and portfolio. edits after feedbacknkdiehl
 
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSA
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSAResume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSA
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSAUzzalMazumder1
 
Sarbach_George_SM&M_PB1-2024.New -03.pdf
Sarbach_George_SM&M_PB1-2024.New -03.pdfSarbach_George_SM&M_PB1-2024.New -03.pdf
Sarbach_George_SM&M_PB1-2024.New -03.pdfitzzjorge
 
Personal Brand Exploration Personal Brand Exploration
Personal Brand Exploration Personal Brand ExplorationPersonal Brand Exploration Personal Brand Exploration
Personal Brand Exploration Personal Brand Explorationspiderman85719
 
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...md4afxz
 
Youth Outreach Services 1 for civics.pptx
Youth Outreach Services 1 for civics.pptxYouth Outreach Services 1 for civics.pptx
Youth Outreach Services 1 for civics.pptxtrobinson10
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFJulia Kaye
 
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docx
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docxBless Kombo_PSP3 presentation assessment sheets updated GBA (1).docx
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docxblessfkombo
 
Angel May Sato Digital Portfolio for General VA, SMM & Graphic Design
Angel May Sato Digital Portfolio for General VA, SMM & Graphic DesignAngel May Sato Digital Portfolio for General VA, SMM & Graphic Design
Angel May Sato Digital Portfolio for General VA, SMM & Graphic DesignAngel May Sato
 
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptx
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptxMcKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptx
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptxkassidym0541
 
Personal Brand Exploration: Project & Portfolio l
Personal Brand Exploration: Project & Portfolio lPersonal Brand Exploration: Project & Portfolio l
Personal Brand Exploration: Project & Portfolio lromanwoods0908
 
Thisismycivics101Presentationforicstars.
Thisismycivics101Presentationforicstars.Thisismycivics101Presentationforicstars.
Thisismycivics101Presentationforicstars.mellis7
 
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24np06370
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfVISHNURAJSSNSCEAD
 

Recently uploaded (20)

Personal Branding Exploration for Career
Personal Branding Exploration for CareerPersonal Branding Exploration for Career
Personal Branding Exploration for Career
 
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...
John Hart from Pennsylvania: Exploring the Academic Journey and Leadership Le...
 
Joshua Bicknell - Writing Portfolio (2024)
Joshua Bicknell - Writing Portfolio (2024)Joshua Bicknell - Writing Portfolio (2024)
Joshua Bicknell - Writing Portfolio (2024)
 
Hariharan M meriity online marketing internship project
Hariharan M meriity online marketing internship projectHariharan M meriity online marketing internship project
Hariharan M meriity online marketing internship project
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - Priv
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffs
 
Full Sail projects and portfolio. edits after feedback
Full Sail projects and portfolio. edits after feedbackFull Sail projects and portfolio. edits after feedback
Full Sail projects and portfolio. edits after feedback
 
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSA
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSAResume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSA
Resume of Uzzal Mazumder. M.Sc. in CSE, RHCSA, CCNA, MCSA
 
Sarbach_George_SM&M_PB1-2024.New -03.pdf
Sarbach_George_SM&M_PB1-2024.New -03.pdfSarbach_George_SM&M_PB1-2024.New -03.pdf
Sarbach_George_SM&M_PB1-2024.New -03.pdf
 
Personal Brand Exploration Personal Brand Exploration
Personal Brand Exploration Personal Brand ExplorationPersonal Brand Exploration Personal Brand Exploration
Personal Brand Exploration Personal Brand Exploration
 
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...
My placement 2022/2023 at Sitran with RNA bio LAb under Prof. Guillaume Hautb...
 
Youth Outreach Services 1 for civics.pptx
Youth Outreach Services 1 for civics.pptxYouth Outreach Services 1 for civics.pptx
Youth Outreach Services 1 for civics.pptx
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
 
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docx
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docxBless Kombo_PSP3 presentation assessment sheets updated GBA (1).docx
Bless Kombo_PSP3 presentation assessment sheets updated GBA (1).docx
 
Angel May Sato Digital Portfolio for General VA, SMM & Graphic Design
Angel May Sato Digital Portfolio for General VA, SMM & Graphic DesignAngel May Sato Digital Portfolio for General VA, SMM & Graphic Design
Angel May Sato Digital Portfolio for General VA, SMM & Graphic Design
 
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptx
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptxMcKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptx
McKay_Kassidy_BM_PB1_P&P1PB_2024-03.pptx
 
Personal Brand Exploration: Project & Portfolio l
Personal Brand Exploration: Project & Portfolio lPersonal Brand Exploration: Project & Portfolio l
Personal Brand Exploration: Project & Portfolio l
 
Thisismycivics101Presentationforicstars.
Thisismycivics101Presentationforicstars.Thisismycivics101Presentationforicstars.
Thisismycivics101Presentationforicstars.
 
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24
All_About_Me_Nina_Petiot_PR_PRACTICUM_SPRING24
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdf
 

Financing a Startup

  • 1. Visit evisors.com to browse all mentors who can help you with: • Informational Interviews • Resumes & Cover Letters • Mock Interviews …and more! Hosted by: Career Advisors on Demand..com/webinars
  • 2. Financing a Startup The Who, What, When and How’s featuring: Michael Horowitz Associate Hosted by: Caitlin Quan Evisors Marketing & Operations Associate Hosted by: Career Advisors on Demand..com/webinars
  • 3. Disclaimer Everything you are about to hear represents my own personal opinions and not those of my employer or colleagues. For the sake of time, I’m also generalizing a lot – don’t take any of my comments as applying specifically to any one firm. Hosted by: Career Advisors on Demand..com/webinars
  • 4. Agenda 1. About Me 2. Sources of Capital – Know Your Audience 3. How to Pitch a VC 4. Financing Considerations 5. Q&A Hosted by: Career Advisors on Demand..com/webinars
  • 5. About Me • Associate @ Bessemer • University of Pennsylvania | 2010 • Goldman Sachs (SSG) | 2009 • BlackRock (PMG) | 2008 • Weather Risk Solutions (Startup) | 2006 - 2010 Hosted by: Career Advisors on Demand..com/webinars
  • 6. Before you raise money… • Do I really want to do this? – Lifestyle change – Committing to a larger exit – Dilution – Loss of control • And is now the right time? – Do I have a team? Product? Customers? – Am I approaching key inflection points that might significantly raise the value of my business? • That said… – VC’s can add lots of value: • Cash to grow more quickly • Recruiting help • Customer or advisor intros • Strategy and benchmarking advice – we’ve been there before! Hosted by: Career Advisors on Demand..com/webinars
  • 7. Where should you look? • How much do you need? – <$50k • Friends and family – Common source for initial funding; be wary of ruining relationships • Seed programs (Y Combinator, TechStars, RockHealth, ImagineK12…) – money, space and mentoring – $50 - 250k • Individual angel investors - often past or current CEOs or successfully founders – $250k - $1m • Syndicates of angel investors, super angel funds (SV Angel, Chris Sacca, Box Group, 500 Startups…) – $1m - $3m • Early-stage venture funds (First Round, True Ventures, Felicis Ventures, Thrive, Lerer Ventures…) – $3m - $20m • Venture funds (Bessemer, Accel, Sequoia, Benchmark, Matrix, Redpoint, NEA…) • What about… – Banks • Banks generally want to lend against predictable, proven businesses – Crowdfunding • Kickstarter – non dilutive funding • FundersClub, Seedinvest and others – AngelList Hosted by: Career Advisors on Demand..com/webinars
  • 8. What do these people want? • Know Your Audience – Angel investors are looking for a return, but generally are looser with terms than venture firms (no board seats, small positions, limited protections) – Venture funds will be more heavily involved – on your board, owning more of the company, obtaining more rights and protections – Angels and funds have sector and stage focuses – be sure they fit with your company! • Also consider… – What is the fund’s approach to making follow-on investments (and does it have the funds)? – Who is the specific person you will be working with and how well do you get along? – What are your/the investor’s expectations for how involved they will be? …and how can I find them? • NETWORK, NETWORK, NETWORK – Most investors get way more inbound inquires than they can spend time on – We don’t have time to read and evaluate long business plans (or even short ones) – The best way to get in touch is through a connection – LinkedIn, startup lawyers, connections in the VC’s portfolio, social media engagement, conferences… – Always be ready with a QUICK (30 second) elevator pitch Hosted by: Career Advisors on Demand..com/webinars
  • 9. How to pitch an investor • The Perfect Pitch Deck – ~10 slides – Clearly stated problem – is this something people care about? – Market – is the market big enough? – Solution (tech/product explanation) – demos are good if they are short and they work – just convince me you’re taking an interesting / reasonable approach – Team – do you have the right people for the job? – Business model – can this make money? – Competition – who else is doing it and why are you better? – Traction – share whatever data you have that shows your business is working – Financial info – have you raised money before? What are the company’s financials? • Common mistakes – “We have no competition” – “We conservatively project $100m revenue in 3 years” – “If we just get 1% of this massive market we’ll be a big company…” – “I can’t tell you more until you sign an NDA” Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 10. What are you being judged upon? • A lot of it is YOU! • Then it depends on the stage of the company – Pre-product: Team + Market – Pre-launch product: Team + Market + Product – Recently launched product: Team + Market + Product + Initial Traction • What is “traction”? – Downloads/Signups/Registrations – User engagement (# of visits, frequency of visits, number of interactions/visit…) – Monetization (free to paid %, customer lifetime value, churn…) – User acquisition cost • BVP has some great resources: – 10 Laws of Cloud Computing – 10 Laws of eCommerce Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 11. What to know about financing • Convertible Notes vs. Priced Rounds – Convertible notes delay pricing of the round (generally for a discount in the future) – Deal docs are simpler – Can work out poorly in tough financing environments • Liquidation Preferences – Common, Preferred and Participating Preferred • Option pools and vesting – Often come out of the founder’s stake • Protective provisions: – Standard blocks on exits, issuance of new stock, sale of assets… – Anti-dilution protection – Redemption rights – ROFR’s Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 12. A note on hardware startups • A lot of the pre-presentation questions were about hardware startups • They still get funded, but it can be difficult • Lower margins than software, require a lot of $$$ to scale • When you can build Instagram on a few million… • Some current successful hardware startups: Nest, Lytro, e la carte, Sonos, Jawbone, Fitbit, Pinnacle Engines* • Who’s funding them? Redpoint, Andreessen, Foundry, KPCB, Khosla, *Bessemer… • Kickstarter can be your best friend here – prove demand, raise non-dilutive funds • Lemnos Labs – hardware incubator Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 13. Connect Book your one-on-one session with Michael at www.evisors.com/expert/1975 Michael Horowitz Associate Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 14. Questions & Answers Hosted by:See the rest at evisors.com/webinars/webinar/73
  • 15. Questions & Answers Question 1: Is there an age limit where venture capital firms are reluctant to invest in? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 16. Questions & Answers Question 2: Can you advise on how to gauge the timing and depth of financing? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 17. Questions & Answers Question 3: Are there any models that combine crowd- funding with angel investing? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 18. Questions & Answers Question 4: What methods are there to measure the cost of customer acquisition? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 19. Questions & Answers Question 5: Would you suggest working for a few years vs. moving straight into your venture? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 20. Questions & Answers Question 6: Situational funding question Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 21. Questions & Answers Question 7: How do you create proposals that fit the objectives of the person who has the money? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 22. Questions & Answers Question 8: Are there important cultural differences between the USA and Europe when raising capital? Hosted by:See the answer at evisors.com/webinars/webinar/73
  • 23. Get the latest updates on upcoming webinars by following us: Register for live webinars and view all our recordings at: www.evisors.com/webinars facebook.com/Evisors twitter.com/Evisors pinterest.com/Evisors linkedin.com/company/Evisors Hosted by:See the rest at evisors.com/webinars/webinar/73