This document provides lessons and best practices for startup founders on fundraising and investor relationships. It discusses different levels of fundraising from bootstrapping to institutional investors. It also covers types of investors, investment instruments, pitch meetings, questions for investors, due diligence documents, and crowdfunding best practices like using templates, tiered contact lists, and press kits. The overall message is the importance of relationships, underpromising and overdelivering, and coming prepared with the right documents.

1. Lessons in Funding
From a Startup CEO
Mike Malloy
Waveborn Sunglasses
Georgetown Alum

2. Agenda
• Waveborn Story
• Levels of Funding
• Investor Relationships
• Types of Investors and Investment Instruments
• Types of Pitch Meetings
• Questions for Investors
• Due Diligence Documents
• Crowdfunding 101

4. Levels of Fundraising
• Bootstrapping
• Friends, Family, and Fools
• Crowdfunding
• Angel Investors
• Equity Crowdfunding
• Banks
• Institutional VC Investors
• IPO

5. Investor Relationships
• Raising seed capital is relationship business for
next 5-10 years
• Investors are betting on you, not the company
• No now is not no forever  most likely to
invest in the next round
• Ask for introductions to other investors
• Connect the dots  make lines
• Under promise and over deliver
• Social proof of other investors

6. 7 Types of Investors
• Connectors
• Product People
• Builders
• Smart Business People
• Domain Expert
• The Brand
• Filler

7. Types of Investment Instruments
• Debt
• Equity
• Convertible Notes
• Crowdfunding via Indiegogo or Kickstarter
• Equity Crowdfunding via OneVest
• Series A Preferred Stock
• Warrants from Banks
• M&A
• IPO

8. Types of Pitch Meetings
• Elevator pitch – 30 seconds
– Pitch by analogy and get them to ask a question
• Conversational pitch – 5-10 minutes
– Company storytelling to existing relationship
– Goal of meeting is to get the next meeting
• Full investment pitch – 1 hour
– 10 slides, 20 minutes, 30+ size font
– Clear investment ask at end with questions

9. Questions for Investors
• How often do you invest?
• What is your average check size?
• What is the range of funds you are considering
investing in this round?
• How are you going to add strategic value?
• Who else in your network can add value?
• Do you do follow on investments?

10. Due Diligence Documents
• Executive Summary
• Pitch Deck
• Term Sheet
• Income Statement
• Balance Sheet
• Cash Flow Projections

11. Crowdfunding 101

13. Crowdfunding Best Practices
• 45 day campaign
• Start on Tuesday – end on Friday
• Set low goal and reach it quickly
• Build momentum towards stretch goals
• Video is most important feature
• Update emails weekly to engage supporters

14. Prep Work – 3 Months
• Secure pre-commits prior to launching and
focus on huge Day One with momentum
• Define roles and time commitment on TEAM

15. Templates, Templates, Templates
• Google Docs are your best friend
• Email templates
• Facebook posts to copy and paste
• Click to Tweet links
• Social sharing page for supporters to get all
the text needed to share, share, share!
• Contactually CRM

16. Tiered Contact Lists
• 1 – Key influencers, large network, high net
worth, focus on referrals
• 2 – Friends and family who have supported
you on the journey, focus on pre-commit on
Day One of campaign
• 3 – Every other person you have ever met,
focus on getting engagement

17. Use These Tools
• Breevy (PC) | TextExpander (Mac)
– Camp; 
– http://bit.ly/waveborncampaign 
– https://www.indiegogo.com/projects/waveborn-
shades-that-give-sight/x/2385224
• Bit.ly Links
• Google Docs
• ToutApp
• Contactually

18. Press Kits
• http://os-fashion.com/press-kit-freestyle-
conference-dc-2014-2/
• http://wiki.waveborn.com/campaign/press-kit
• FAQs (post on campaign page, too!)

19. Waveborn Contact Info
Waveborn Sunglasses: http://www.waveborn.com
Wholesale: http://shop.waveborn.com/wholesale
Customer Service: +1-844-FIND-SUN
waveborn@custsvc.net
Mike Malloy, CEO: 310-499-6295
malloy@waveborn.com
www.linkedin.com/in/mwmalloy
@waveborn

20. Appendix

21. Additional Content
• https://www.linkedin.com/today/post/article/
20140827212854-42595648-how-to-select-
the-best-investors-for-your-startup
• http://tech.co/close-fundraising-round-2014-
10
• http://tinyurl.com/becomingsogood

22. Successful Crowdfunding Campaigns
• SOMA Water - $100k in 10 days
• Nice Laundry
• Waveborn Sunglasses
• Eone – Watch for the Blind
• iJUMP – Smartphone Battery Booster