Prepare for fundraising: Materials: Pitch deck Backup slides Due diligence references: founders, customers/users, industry experts Financials: 2/3-year model and actual financials Practice your narrative, over and over Know it well, be comfortable with interruptions and not going linear Pitch friendlies: advisors, fellow entrepreneurs, existing investors Incorporate feedback, and initiate introductions once The higher the risk, the lower the valuation, the smaller the raise The valuation is a measure of all the risks that have not been eliminated (team, tech, production, goto market, etc.) Pre-Seed: < $1M To build the product Sources: Angels, AngelList, pre-seed firms, accelerators Runway: 9/12 months Team: handful Valuation: $3 to $6M pre Dilution: 5% to 15% Seed: $1M to $3M To launch the product Sources: Seed funds, angels, AngelList, other funds Runway: 18/24 months Team: < dozen Valuation: $6M to $10M Dilution: 20/25%

1. Equity & Funding

2. REMEMBER!
Just because you can’t do it, doesn’t mean it can’t be
done

3. Fundraising
1. Prepare
2. Prepare
3. Prepare
4. Compile a list
5. Pitch

4. Prepare
Materials:
Pitch deck
Backup slides
Due diligence references:
founders, customers/users, industry experts
Financials: 2/3-year model and actual financials

5. Financials
estimates
have more
to do with
astrology
than
finance

6. Rehearse
Practice your narrative, over and over
Know it well, be comfortable with interruptions and not
going linear
Pitch friendlies: advisors, fellow entrepreneurs, existing
investors
Incorporate feedback, and initiate introductions once

7. When do you start pitching?
“When it feels right”

8. Valuation $
Team: experience, track record, unique insights,
founding story
Product: how unique, stage of development,
intellectual property
Market: revenue potential, TAM

9. So… how much?
The higher the risk, the lower the valuation, the smaller the raise
The valuation is a measure of all the risks that have not been
eliminated (team, tech, production, goto market, etc.)
Is money the only thing missing?

10. So… how much? - adjust by region
Pre-Seed: < $1M
To build the product
Sources: Angels, AngelList,
pre-seed firms, accelerators
Runway: 9/12 months
Team: handful
Valuation: $3 to $6M pre
Dilution: 5% to 15%
Seed: $1M to $3M
To launch the product
Sources: Seed funds, angels,
AngelList, other funds
Runway: 18/24 months
Team: < dozen
Valuation: $6M to $10M
Dilution: 20/25%

11. You need to end up in
someone’s “1% of deals”

12. 0 connections to investors?
Go to an accelerator and prove you are a hard worker
Bootstrap, if you have the balls
Generate early revenue
Cold emails --- Works better and better

13. FIT
Founder / Problem
Product / Market
Product / Market / Sales

14. Steps
1. initial meeting
2. follow-up meetings
3. due diligence calls and meetings
4. full partners presentation
5. term-sheet negotiation
6. legal
7. due diligence
8. closing

15. 5 things that will lower your chances
1. Send a “To whom it may concern” mass email
2. Saying I am either selling to Google or raising a round
3. Not having a good grasp of your ecosystem or competition
4. Investors feeling founders “don’t know what they don’t know”
5. Using too many buzzwords

16. 5 more things that will lower your
chances
1. Having a massive advisory board that is not engaged
2. Trying to hide things
3. Raising too little, or too much at a valuation that is disconnected from
your stage
4. Acting weird, not following up promptly, not showing interest
5. Not having your tech ready, or backup solutions when pitching

17. 17
MVP/PROTOTYPE
FULL SKILL
FOUNDING TEAM
USERS + SOME
FEEDBACKTESTED CUSTOMER
ACQUISITION
CHANNELS
REVENUE
What do you
need to
fundraise
successfully?

18. 18
Interacting with Investors
1. Show you are the right team
2. Be confident
3. Be professional
4. Don’t ask for an NDA
5. Interview the investors as much as
they interview you
6. Don’t over-negotiate
7. Gently: create FOMO
8. Have a process

19. NOT ALL MONEY IS GOOD
MONEY

20. Thanks
gabriel@naologic.com