SlideShare a Scribd company logo
1 of 18
Fundraising Guide
For Founders
1
Reasons to Fundraise
1. To fund growth
2. To finance a realization event
3. Because you can*
4. Because you have no money
2
* Capital is offered on fair terms
When and How Much to Raise
• 3-6 months before need capital in bank
• When business is ready for target investor
• When capital is offered at a fair price
• Always
3
• Enough to meet next major milestones then raise next round
• Ideally want ~18 months of runway
• As much as you can on reasonable terms
When to Raise Capital
How Much to Raise
Running a Fundraising Process
4
Create a
Pipeline
Prepare
Materials
Get
Introduced
Follow-up
• Friends
• Relatives
• Grants
• Crowdfunding?
• Angellist
• Crunchbase
• Investors and
executives in
your sector
• CB Insights
• Deck
• One-pager
• E-mail
• Projections
• Market sizing
• References
• Find
connections to
everyone in the
pipeline
• Ask for
introductions
• Take notes in or
after each
conversation
• Ask about
decision
process
• Respond to
questions or
requests
immediately
• Be polite and
persistent
Funding Sources
5
• Personal (savings, credit cards, loans)
• Friends & family
• Grants
• Customers
• Small Business Administration
• Crowds
• Angels
• Accelerators
• VCs
• Banks
Funding Sources
6
• Personal (savings, credit cards, loans)
• Friends & family
• Grants
• Customers
• Small Business Administration
• Crowds
• Angels
• Accelerators
• VCs
• Banks
Okay to approach
because you have
no money
Approach with solid
money-making
opportunity
Funding Sources
7
Work from the top down
• Personal (savings, credit cards, loans)
• Friends & family
• Grants
• Customers
• Small Business Administration
• Crowds
• Angels
• Accelerators
• VCs
• Banks
Funding Sources
8
• Personal (savings, credit cards, loans)
• Friends & family
• Grants
• Customers
• Small Business Administration
• Crowds
• Angels
• Accelerators
• VCs
• Banks
Angels
9
Definition Wealthy individuals who invest own money in startups
Check Size $25-100k
Financing Profile $100-500k for 10-30% in common stock
Criteria • Chemistry with founder(s)
• Enthusiasm for product/concept
• $1B+ Total Addressable Market (TAM)
• 20-30x return potential
Accelerators
10
Definition Three- to six-month boot camp that provides capital,
mentorship, and usually office space
Check Size $20-150k
Financing Profile • Generally invest alone*
• 3-6% for capital and services
Criteria • Well-rounded founding team
• Demonstrable product
• $1B+ Total Addressable Market (TAM)
• ~20x return potential in <7 years
* May include outside investors as part of standard financing
Venture Capital*
11
Definition Institutions run by professional investors who invest in startups
on behalf of organizations and wealthy individuals
Check Size $100k-1M
Financing Profile $250k-2M for 10-30% in preferred stock
Criteria • Well-rounded founding team
• Product in some form of release
• Some users or customers
• Scalable business model with 50-80% gross margins
• $1B+ Total Addressable Market (TAM)
• ~10-20x return potential in <7 years
* Slide focuses on Pre-seed and Seed-stage VCs
Venture Capital
12
Limited
Partners
General
Partner (VC)
Portfolio
Company A
Portfolio
Company B
Portfolio
Company C
Investment
Fees
Carry
Returns Less
Fees and Carry
$
Stock
Family offices
Pensions
Foundations
Fund of funds
Endowments
Corporations
Wealthy individuals
Types of Securities
13
Definition
Convertible Note Stock SAFE
Loan that turns into
stock later
Shares representing
ownership
Simple Agreement
for Future Equity
Key Terms
• Discount (~20%)
• Cap (Valuation)
• Maturity
• Interest
• Valuation
• Preferred vs.
common
• Preference
• Participation
• Control
• Financing event
• Liquidity event
• Dissolution event
Advantages
• Speed
• Cost
• Control
• Valuation
• Rolling close
• Alignment
• Clarity
• Engagement
• Speed
• Cost
• No maturity
• No interest
• Rolling close
Issues • Maturity
• Interest
• Cost
• Speed
• Single close
• Novelty
Pitch Meetings
14
Bring • Deck (tablet okay)
• No more than one other co-founder
Ask • Typical investment size?
• Investment criteria?
• Decision-making process?
• Next steps?
Do • Have a conversation but prepare for a presentation
• Rehearse/role play with friends before first pitch
• Listen
• Answer all questions succinctly
• Say “I don’t know”
Do Not • Bring an agent, investor or adviser
• Show up late
• Dress up (unless the venue requires it)
• Act defensive or “sell”
Resources
• The Fundraising Rules by Mark Davis
• Venture Deals by Brad Feld
• Mastering the VC Game by Jeff Bussgang
15
• Chris Dixon, A16Z
• Brad Feld, Foundry Group
• First Round Review
• Paul Graham, Y Combinator
• Mark Suster, Upfront
• Hunter Walk, Homebrew
• Fred Wilson, Union Square Ventures
• Convertible note
• Preferred stock
• SAFE
Books
Blogs
Documents
About Me
16
• 10+ prior years in venture capital: 18 investments
– Gotham Ventures
– North Hill Ventures
• Sometimes angel investor: 12 investments
Current Roles
Prior Roles
Investing
Interests
Personal
• Partner at CoVenture
• Investor-in-Residence at Cornell Tech
Marketplaces, finance, education, clean web, health,
future of work
• Grew up in Nebraska
• Cornell, Wharton
• Boston sports
My Day Job: CoVenture
17
• Seed and pre-seed investments
• Founded 2013
• 16 investments and counting
• Software + capital
– ~$25k cash investments
– Web and mobile design and development
• Team: NYC (3) and Lahore (40)
• Sectors: education, finance, health, commerce
• Criteria
– Founder-market fit
– Market validation
– Venture scale
– Purpose
18
Thank You
@thatcherbell
thatcherbell.com

More Related Content

What's hot

Be your own boss - jason ojukwu
Be your own boss - jason ojukwuBe your own boss - jason ojukwu
Be your own boss - jason ojukwuJason_Ojukwu
 
Venture Fast Track - Funding Strategies
Venture Fast Track - Funding StrategiesVenture Fast Track - Funding Strategies
Venture Fast Track - Funding StrategiesThe Capital Network
 
7.3 global business cultures
7.3 global business cultures7.3 global business cultures
7.3 global business culturesRick Rasmussen
 
What it means to my client
What it means to my clientWhat it means to my client
What it means to my clientPeter Worth
 
Mastering the VC Game presentation
Mastering the VC Game presentationMastering the VC Game presentation
Mastering the VC Game presentationJeffrey Bussgang
 
Fundraising 101 : Are You Ready for an Investment Round?
Fundraising 101 : Are You Ready for an Investment Round? Fundraising 101 : Are You Ready for an Investment Round?
Fundraising 101 : Are You Ready for an Investment Round? David Ehrenberg
 
Strategies for Accessing the US Market (Feb 1-2, 2016)
Strategies for Accessing the US Market (Feb 1-2, 2016)Strategies for Accessing the US Market (Feb 1-2, 2016)
Strategies for Accessing the US Market (Feb 1-2, 2016)Gil Ben-Artzy
 
Chicago Entrepreneurial Center small business presentation
Chicago Entrepreneurial Center small business presentationChicago Entrepreneurial Center small business presentation
Chicago Entrepreneurial Center small business presentationJeffrey R. Carter
 
What an angel investor wants an entrepreneur to know
What an angel investor wants an entrepreneur to know What an angel investor wants an entrepreneur to know
What an angel investor wants an entrepreneur to know Dr Aniruddha Malpani
 
1.1 b course overview startups
1.1 b course overview   startups1.1 b course overview   startups
1.1 b course overview startupsRick Rasmussen
 
The Money Hunt Crowd Funding 101
The Money Hunt   Crowd Funding 101The Money Hunt   Crowd Funding 101
The Money Hunt Crowd Funding 101Karen Rands
 
Success via Failure
Success via FailureSuccess via Failure
Success via FailureGeorge Bevis
 
The Capital Network - Working with angel groups
The Capital Network - Working with angel groupsThe Capital Network - Working with angel groups
The Capital Network - Working with angel groupsThe Capital Network
 
Apply for Angel Funding with an Investors Perspective
Apply for Angel Funding with an Investors PerspectiveApply for Angel Funding with an Investors Perspective
Apply for Angel Funding with an Investors PerspectiveThe Capital Network
 

What's hot (16)

Be your own boss - jason ojukwu
Be your own boss - jason ojukwuBe your own boss - jason ojukwu
Be your own boss - jason ojukwu
 
Funding Options
Funding OptionsFunding Options
Funding Options
 
Venture Fast Track - Funding Strategies
Venture Fast Track - Funding StrategiesVenture Fast Track - Funding Strategies
Venture Fast Track - Funding Strategies
 
7.3 global business cultures
7.3 global business cultures7.3 global business cultures
7.3 global business cultures
 
What it means to my client
What it means to my clientWhat it means to my client
What it means to my client
 
Mastering the VC Game presentation
Mastering the VC Game presentationMastering the VC Game presentation
Mastering the VC Game presentation
 
Fundraising 101 : Are You Ready for an Investment Round?
Fundraising 101 : Are You Ready for an Investment Round? Fundraising 101 : Are You Ready for an Investment Round?
Fundraising 101 : Are You Ready for an Investment Round?
 
Angel investing 101
Angel investing 101Angel investing 101
Angel investing 101
 
Strategies for Accessing the US Market (Feb 1-2, 2016)
Strategies for Accessing the US Market (Feb 1-2, 2016)Strategies for Accessing the US Market (Feb 1-2, 2016)
Strategies for Accessing the US Market (Feb 1-2, 2016)
 
Chicago Entrepreneurial Center small business presentation
Chicago Entrepreneurial Center small business presentationChicago Entrepreneurial Center small business presentation
Chicago Entrepreneurial Center small business presentation
 
What an angel investor wants an entrepreneur to know
What an angel investor wants an entrepreneur to know What an angel investor wants an entrepreneur to know
What an angel investor wants an entrepreneur to know
 
1.1 b course overview startups
1.1 b course overview   startups1.1 b course overview   startups
1.1 b course overview startups
 
The Money Hunt Crowd Funding 101
The Money Hunt   Crowd Funding 101The Money Hunt   Crowd Funding 101
The Money Hunt Crowd Funding 101
 
Success via Failure
Success via FailureSuccess via Failure
Success via Failure
 
The Capital Network - Working with angel groups
The Capital Network - Working with angel groupsThe Capital Network - Working with angel groups
The Capital Network - Working with angel groups
 
Apply for Angel Funding with an Investors Perspective
Apply for Angel Funding with an Investors PerspectiveApply for Angel Funding with an Investors Perspective
Apply for Angel Funding with an Investors Perspective
 

Viewers also liked

Viewers also liked (6)

Fundraising How To Guide
Fundraising How To GuideFundraising How To Guide
Fundraising How To Guide
 
The State of NYC Seed - NextView
The State of NYC Seed - NextViewThe State of NYC Seed - NextView
The State of NYC Seed - NextView
 
Notation Capital - 1 Year In
Notation Capital - 1 Year InNotation Capital - 1 Year In
Notation Capital - 1 Year In
 
NextView 2015 Year in Review
NextView 2015 Year in ReviewNextView 2015 Year in Review
NextView 2015 Year in Review
 
The 10 Year Project
The 10 Year ProjectThe 10 Year Project
The 10 Year Project
 
State of Startups 2016
State of Startups 2016State of Startups 2016
State of Startups 2016
 

Similar to Fundraising guide

Beginner's Guide: How to raise Seed and Series A Funding for Your Tech Startups
Beginner's Guide: How to raise Seed and Series A Funding for Your Tech StartupsBeginner's Guide: How to raise Seed and Series A Funding for Your Tech Startups
Beginner's Guide: How to raise Seed and Series A Funding for Your Tech StartupsRakesh Soni
 
Demystifying Funding for Startups- Abishek Surendran
Demystifying Funding for Startups- Abishek SurendranDemystifying Funding for Startups- Abishek Surendran
Demystifying Funding for Startups- Abishek SurendranLounge47
 
Techstars Patriot Boot Camp Fundraising Preso
Techstars Patriot Boot Camp Fundraising PresoTechstars Patriot Boot Camp Fundraising Preso
Techstars Patriot Boot Camp Fundraising PresoShai Goldman
 
Investment and fundraising for startups
Investment and fundraising for startupsInvestment and fundraising for startups
Investment and fundraising for startupsBlaz Kos
 
Running an Investment Process
Running an Investment ProcessRunning an Investment Process
Running an Investment ProcessSteve Schlafman
 
Raising Your First Round: Finding the Right Investors & Preparing for the Pitch
Raising Your First Round: Finding the Right Investors & Preparing for the PitchRaising Your First Round: Finding the Right Investors & Preparing for the Pitch
Raising Your First Round: Finding the Right Investors & Preparing for the PitchGreg Barnes
 
Funding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesFunding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesThe Capital Network
 
Investor readiness: Startup fundraising by Startups.be
Investor readiness: Startup fundraising by Startups.beInvestor readiness: Startup fundraising by Startups.be
Investor readiness: Startup fundraising by Startups.beStartUps.be
 
Funding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesFunding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesThe Capital Network
 
Raising the next round of funding oct 2015
Raising the next round of funding oct 2015Raising the next round of funding oct 2015
Raising the next round of funding oct 2015ideatoipo
 
Raising the next round of funding oct 2015
Raising the next round of funding oct 2015Raising the next round of funding oct 2015
Raising the next round of funding oct 2015ideatoipo
 
How to Raise a Seed Round - The Players Impact - June 2021
How to Raise a Seed Round - The Players Impact - June 2021How to Raise a Seed Round - The Players Impact - June 2021
How to Raise a Seed Round - The Players Impact - June 2021David Chang
 
Scott droney - financing start-up and growth
Scott droney -  financing start-up and growthScott droney -  financing start-up and growth
Scott droney - financing start-up and growthScott Droney
 
Selling or Buying a Business?
Selling or Buying a Business?Selling or Buying a Business?
Selling or Buying a Business?Paula Carr
 
Selling or Buying a Business
Selling or Buying a BusinessSelling or Buying a Business
Selling or Buying a BusinessBizNexus
 
Funding options for Life Science Companies
Funding options for  Life Science CompaniesFunding options for  Life Science Companies
Funding options for Life Science CompaniesThe Capital Network
 
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020David Chang
 

Similar to Fundraising guide (20)

Beginner's Guide: How to raise Seed and Series A Funding for Your Tech Startups
Beginner's Guide: How to raise Seed and Series A Funding for Your Tech StartupsBeginner's Guide: How to raise Seed and Series A Funding for Your Tech Startups
Beginner's Guide: How to raise Seed and Series A Funding for Your Tech Startups
 
Demystifying Funding for Startups- Abishek Surendran
Demystifying Funding for Startups- Abishek SurendranDemystifying Funding for Startups- Abishek Surendran
Demystifying Funding for Startups- Abishek Surendran
 
Techstars Patriot Boot Camp Fundraising Preso
Techstars Patriot Boot Camp Fundraising PresoTechstars Patriot Boot Camp Fundraising Preso
Techstars Patriot Boot Camp Fundraising Preso
 
Investment and fundraising for startups
Investment and fundraising for startupsInvestment and fundraising for startups
Investment and fundraising for startups
 
Raising Venture Capital
Raising Venture CapitalRaising Venture Capital
Raising Venture Capital
 
Running an Investment Process
Running an Investment ProcessRunning an Investment Process
Running an Investment Process
 
Raising Your First Round: Finding the Right Investors & Preparing for the Pitch
Raising Your First Round: Finding the Right Investors & Preparing for the PitchRaising Your First Round: Finding the Right Investors & Preparing for the Pitch
Raising Your First Round: Finding the Right Investors & Preparing for the Pitch
 
Funding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesFunding Options for Early-Stage Companies
Funding Options for Early-Stage Companies
 
Investor readiness: Startup fundraising by Startups.be
Investor readiness: Startup fundraising by Startups.beInvestor readiness: Startup fundraising by Startups.be
Investor readiness: Startup fundraising by Startups.be
 
Funding Options for Early-Stage Companies
Funding Options for Early-Stage CompaniesFunding Options for Early-Stage Companies
Funding Options for Early-Stage Companies
 
Managing startup finances
Managing startup financesManaging startup finances
Managing startup finances
 
Raising the next round of funding oct 2015
Raising the next round of funding oct 2015Raising the next round of funding oct 2015
Raising the next round of funding oct 2015
 
Raising the next round of funding oct 2015
Raising the next round of funding oct 2015Raising the next round of funding oct 2015
Raising the next round of funding oct 2015
 
How to Raise a Seed Round - The Players Impact - June 2021
How to Raise a Seed Round - The Players Impact - June 2021How to Raise a Seed Round - The Players Impact - June 2021
How to Raise a Seed Round - The Players Impact - June 2021
 
Scott droney - financing start-up and growth
Scott droney -  financing start-up and growthScott droney -  financing start-up and growth
Scott droney - financing start-up and growth
 
Selling or Buying a Business?
Selling or Buying a Business?Selling or Buying a Business?
Selling or Buying a Business?
 
Selling or Buying a Business
Selling or Buying a BusinessSelling or Buying a Business
Selling or Buying a Business
 
Funding options for Life Science Companies
Funding options for  Life Science CompaniesFunding options for  Life Science Companies
Funding options for Life Science Companies
 
Healthcare Fundraising 101
Healthcare Fundraising 101Healthcare Fundraising 101
Healthcare Fundraising 101
 
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020
Bridge to MassChallenge India - How to Raise a Seed Round - Oct 2020
 

Recently uploaded

Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabiaopstechsanjanasingh
 
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckHajeJanKamps
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAYLouis Malaybalay
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGNATHAN SPEAKS
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"Adharsh45
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfmeftaul987
 
Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneurramya202104
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model InnovationMichal Hron
 
NVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxNVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxKrutik Rakade
 
How The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersHow The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersFlyyx Tech
 
Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeStephenKim86
 
pitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdfpitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdflebob12
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateAdnet Communications
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfLouis Malaybalay
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi Tube
 
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024believeminhh
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryDennisViau
 
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptBus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptendeworku
 

Recently uploaded (20)

Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabia
 
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
 
WAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdfWAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdf
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETING
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdf
 
Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneur
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model Innovation
 
WAM Corporate Presentation Mar 12 2024.pdf
WAM Corporate Presentation Mar 12 2024.pdfWAM Corporate Presentation Mar 12 2024.pdf
WAM Corporate Presentation Mar 12 2024.pdf
 
NVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxNVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptx
 
How The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersHow The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K Subscribers
 
Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness Gauge
 
pitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdfpitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdf
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 Update
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
 
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the Industry
 
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptBus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
 

Fundraising guide

  • 2. Reasons to Fundraise 1. To fund growth 2. To finance a realization event 3. Because you can* 4. Because you have no money 2 * Capital is offered on fair terms
  • 3. When and How Much to Raise • 3-6 months before need capital in bank • When business is ready for target investor • When capital is offered at a fair price • Always 3 • Enough to meet next major milestones then raise next round • Ideally want ~18 months of runway • As much as you can on reasonable terms When to Raise Capital How Much to Raise
  • 4. Running a Fundraising Process 4 Create a Pipeline Prepare Materials Get Introduced Follow-up • Friends • Relatives • Grants • Crowdfunding? • Angellist • Crunchbase • Investors and executives in your sector • CB Insights • Deck • One-pager • E-mail • Projections • Market sizing • References • Find connections to everyone in the pipeline • Ask for introductions • Take notes in or after each conversation • Ask about decision process • Respond to questions or requests immediately • Be polite and persistent
  • 5. Funding Sources 5 • Personal (savings, credit cards, loans) • Friends & family • Grants • Customers • Small Business Administration • Crowds • Angels • Accelerators • VCs • Banks
  • 6. Funding Sources 6 • Personal (savings, credit cards, loans) • Friends & family • Grants • Customers • Small Business Administration • Crowds • Angels • Accelerators • VCs • Banks Okay to approach because you have no money Approach with solid money-making opportunity
  • 7. Funding Sources 7 Work from the top down • Personal (savings, credit cards, loans) • Friends & family • Grants • Customers • Small Business Administration • Crowds • Angels • Accelerators • VCs • Banks
  • 8. Funding Sources 8 • Personal (savings, credit cards, loans) • Friends & family • Grants • Customers • Small Business Administration • Crowds • Angels • Accelerators • VCs • Banks
  • 9. Angels 9 Definition Wealthy individuals who invest own money in startups Check Size $25-100k Financing Profile $100-500k for 10-30% in common stock Criteria • Chemistry with founder(s) • Enthusiasm for product/concept • $1B+ Total Addressable Market (TAM) • 20-30x return potential
  • 10. Accelerators 10 Definition Three- to six-month boot camp that provides capital, mentorship, and usually office space Check Size $20-150k Financing Profile • Generally invest alone* • 3-6% for capital and services Criteria • Well-rounded founding team • Demonstrable product • $1B+ Total Addressable Market (TAM) • ~20x return potential in <7 years * May include outside investors as part of standard financing
  • 11. Venture Capital* 11 Definition Institutions run by professional investors who invest in startups on behalf of organizations and wealthy individuals Check Size $100k-1M Financing Profile $250k-2M for 10-30% in preferred stock Criteria • Well-rounded founding team • Product in some form of release • Some users or customers • Scalable business model with 50-80% gross margins • $1B+ Total Addressable Market (TAM) • ~10-20x return potential in <7 years * Slide focuses on Pre-seed and Seed-stage VCs
  • 12. Venture Capital 12 Limited Partners General Partner (VC) Portfolio Company A Portfolio Company B Portfolio Company C Investment Fees Carry Returns Less Fees and Carry $ Stock Family offices Pensions Foundations Fund of funds Endowments Corporations Wealthy individuals
  • 13. Types of Securities 13 Definition Convertible Note Stock SAFE Loan that turns into stock later Shares representing ownership Simple Agreement for Future Equity Key Terms • Discount (~20%) • Cap (Valuation) • Maturity • Interest • Valuation • Preferred vs. common • Preference • Participation • Control • Financing event • Liquidity event • Dissolution event Advantages • Speed • Cost • Control • Valuation • Rolling close • Alignment • Clarity • Engagement • Speed • Cost • No maturity • No interest • Rolling close Issues • Maturity • Interest • Cost • Speed • Single close • Novelty
  • 14. Pitch Meetings 14 Bring • Deck (tablet okay) • No more than one other co-founder Ask • Typical investment size? • Investment criteria? • Decision-making process? • Next steps? Do • Have a conversation but prepare for a presentation • Rehearse/role play with friends before first pitch • Listen • Answer all questions succinctly • Say “I don’t know” Do Not • Bring an agent, investor or adviser • Show up late • Dress up (unless the venue requires it) • Act defensive or “sell”
  • 15. Resources • The Fundraising Rules by Mark Davis • Venture Deals by Brad Feld • Mastering the VC Game by Jeff Bussgang 15 • Chris Dixon, A16Z • Brad Feld, Foundry Group • First Round Review • Paul Graham, Y Combinator • Mark Suster, Upfront • Hunter Walk, Homebrew • Fred Wilson, Union Square Ventures • Convertible note • Preferred stock • SAFE Books Blogs Documents
  • 16. About Me 16 • 10+ prior years in venture capital: 18 investments – Gotham Ventures – North Hill Ventures • Sometimes angel investor: 12 investments Current Roles Prior Roles Investing Interests Personal • Partner at CoVenture • Investor-in-Residence at Cornell Tech Marketplaces, finance, education, clean web, health, future of work • Grew up in Nebraska • Cornell, Wharton • Boston sports
  • 17. My Day Job: CoVenture 17 • Seed and pre-seed investments • Founded 2013 • 16 investments and counting • Software + capital – ~$25k cash investments – Web and mobile design and development • Team: NYC (3) and Lahore (40) • Sectors: education, finance, health, commerce • Criteria – Founder-market fit – Market validation – Venture scale – Purpose