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Early Stage Ventures
Alberto Sfolcini
Financing New Ventures 2013, UCSF
year 2013
Lack of VCs who invest in early
stages of companies
VCs prefer to invest later when things have
been de-risked, ...
proof of concept
Capital Efficiency
Value Creation
Virtual Companies
Capital Efficiency
Every dollar you are spending need to be
useful in terms of advancing you to proof of
concept
minimize ...
Value Creation
How much value are you creating out of
the money you are burning
How you will be able to reach the
value in...
Virtual Companies
Do things virtually, globally, minimize costs
work from home, join incubator or an
accelerator
Outsource...
$$$
how much money do I actually need to
reach a value inflection point?
can I work at nights and on weekends ?
can I use ...
raising Money
VCs
Angels
Incubators and Accelerators
Crowdfunding
VCs
80% of world's VCs lives around Silicon Valley

they are not really investing in
early stage ventures
Angels
around 250.000 angels in the USA

they are not professional investment firms,
but they invest in early stage ventur...
Incubators or Accelerators
They offer help in terms of mentoring,
workshops and facility for early stage of
ventures, some...
Crowdfunding
New way to raise money on the internet
usually small amount of money
conclusion

traditional venture capital may not be the
place to go these days because they are
not really investing in ear...
one more thing...
building a prototype can be much more
expensive than writing a beta software
this is why venture capital...
/end
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Early stage ventures

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What to expect when raising money for early stage ventures

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Early stage ventures

  1. 1. Early Stage Ventures Alberto Sfolcini Financing New Ventures 2013, UCSF
  2. 2. year 2013 Lack of VCs who invest in early stages of companies VCs prefer to invest later when things have been de-risked, they want to see proof of concept
  3. 3. proof of concept Capital Efficiency Value Creation Virtual Companies
  4. 4. Capital Efficiency Every dollar you are spending need to be useful in terms of advancing you to proof of concept minimize the Burn Rate
  5. 5. Value Creation How much value are you creating out of the money you are burning How you will be able to reach the value inflection point Ex. Create a "beta" is your value inflection point
  6. 6. Virtual Companies Do things virtually, globally, minimize costs work from home, join incubator or an accelerator Outsource, no payrolls do not incorporate until there is some sort of proof of concept
  7. 7. $$$ how much money do I actually need to reach a value inflection point? can I work at nights and on weekends ? can I use consultants ?
  8. 8. raising Money VCs Angels Incubators and Accelerators Crowdfunding
  9. 9. VCs 80% of world's VCs lives around Silicon Valley they are not really investing in early stage ventures
  10. 10. Angels around 250.000 angels in the USA they are not professional investment firms, but they invest in early stage ventures
  11. 11. Incubators or Accelerators They offer help in terms of mentoring, workshops and facility for early stage of ventures, sometimes they also invest
  12. 12. Crowdfunding New way to raise money on the internet usually small amount of money
  13. 13. conclusion traditional venture capital may not be the place to go these days because they are not really investing in early stage ventures looking for angeles and use crowdfunding for money that can help you to reach a milestone get as close as possible to proof of concept before talking with VCs
  14. 14. one more thing... building a prototype can be much more expensive than writing a beta software this is why venture capital money likes Tech!
  15. 15. /end

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