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Equity Fundraising webcast july 23 2015

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Everything you should know when going equity fundraising. Start with a capitalization strategy to keep 50% at IPO, select value added investors and broaden your investor portfolio early on. Then go with follow on rounds up to $50 Million in size.

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Equity Fundraising webcast july 23 2015

  1. 1. © Copyright Society3 - 2015#Society3 Online Equity Fundraising Everything You Need to Know #Society3
  2. 2. 2© Copyright Society3 2015 Copying or distribution is prohibited #Society3 San Francisco, CA + 1 (650) 384-0057 Cannes, France + 49 (30) 2023-8748 Society3 Group – http://Society3.com - http://XeeMe.com/Society3 © Copyright Society3 - 2014 Unique 360° startup offering S3 Pitch Events growing community by 200 startups per month S3 Accelerator provides intense six week program in San Francisco and Berlin S3 FundersMart, the most advanced equity fundraising platform (exit anytime – smart money) Alliances with partners and sponsors providing additional programs and services
  3. 3. 3© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Our Own Story Pioneered Online Equity Fundraising in 1997 Raising our initial round from partners and customers Over 100 investors signed up and we oversubscribed Raised 3 consecutive rounds – the largest: $5Million We offered anybody to sell if they needed to Even investment funds loved the concept Four years experience incl. investor relations Raised money for four companies (all successful) Mentioned in dissertations, Financial Times… as inventor of equity based crowd funding
  4. 4. 4© Copyright Society3 2015 Copying or distribution is prohibited #Society3 CapitalizationStrategy Still own 50.1% by the time you IPO Give no more than 15% in seed rounds Keep 70% after the a-round …
  5. 5. 5© Copyright Society3 2015 Copying or distribution is prohibited #Society3 How could the Facebook team retain majority?
  6. 6. 6© Copyright Society3 2015 Copying or distribution is prohibited #Society3 A $100 Million exit - BUT It’s not about being greedy It’s not about being a control freak But you need to be able to steer your business
  7. 7. 7© Copyright Society3 2015 Copying or distribution is prohibited #Society3 No matter what investors tell you It is NOT better to have 10% of a $100 Million company than 100% of a $1 Million company Once investors take over the company the company is going to be sold or merged with 99% probability
  8. 8. 8© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Structure your rounds before you go Seed 15% 85% | 25% 75% A 15% 72% | 25% 56% B 10% 65% | 30% 39% C 8% 59% | 20% 31% D 6% 56% | 15% 26% E 3% 54% | 10% 24% IPO
  9. 9. 9© Copyright Society3 2015 Copying or distribution is prohibited #Society3 BePrepared
  10. 10. 10© Copyright Society3 2015 Copying or distribution is prohibited #Society3 10 Tips For Fundraising Success Getting $250,000+ funding goal Have a bold vision Have an amazing team Have a stellar video from founders and team Positive customer/user sentiments online Have a clean cap table Know exactly how much you need and why Have the use of proceeds clearly defined Build an active investor relationship Mobilize your investors to support you Provide weekly updates to investors
  11. 11. 11© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Due Diligence Process Legal due diligence Conducted by one of our lawyers Incorporation documents, tax filings Business due diligence Team composition Online presence and sentiments Technical due diligence Only for growth stage companies Technical review through experienced CTOs
  12. 12. 12© Copyright Society3 2015 Copying or distribution is prohibited #Society3 FundraisingOnline
  13. 13. 13© Copyright Society3 2015 Copying or distribution is prohibited #Society3 How much can be raised We raised $5 Million already in 1998 There are limits by program US $5 Million round under Title II (Filing Form D) $20 / $50 Million under Title IV (More regulations) A $50 MM round ~ a quarter billion valuation SEC calls Title IV tier II Mini-IPO Follow on rounds same size This is in particular interesting down the road
  14. 14. 14© Copyright Society3 2015 Copying or distribution is prohibited #Society3 What stage? Idea Stage very very few investors Concept stage few investors Build / Beta stage some investors Traction stage most interesting investors Growth stage most investors Expand stage Conservative investors
  15. 15. 15© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Fund Raising Preparation Know how much you need – never ask for more Have your story perfectly down Have all your financials prepared Ready for a due diligence Have a perfect deck for a 5 minute presentation
  16. 16. 16© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Timing Angel Fundraising is quite an intense project Expect 4 weeks preparation Expect to be 8 weeks on tour presenting !!! Expect 4 weeks individual due diligence, negotiation, legal process and funding completion Somewhere between 10 to 100 pitches Online fundraising process Expect 4-6 weeks preparation & due diligence Expect 4 weeks for the first part of funding
  17. 17. 17© Copyright Society3 2015 Copying or distribution is prohibited #Society3 In search of investors Hard to find Hard to get a deal done To o few out there
  18. 18. 18© Copyright Society3 2015 Copying or distribution is prohibited #Society3 A New Investment Marketplace Investors need a smarter way to “Exit Anytime” Startups need a better way to get “Smart Money”
  19. 19. 19© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Financial Services Transformation From lockup to Exit Anytime Paving the way for a new exit model Quadrupling investor network for entrepreneurs Opening the 90% accredited investors segment A market place where shareholders find buyer
  20. 20. 20© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Smart Money Matcher From random to Smart Money Profiling system that help startups find Smart Money Investors with access to their industry, ability to weave connections, subject matter expertise…
  21. 21. 21© Copyright Society3 2015 Copying or distribution is prohibited #Society3 FundersMart
  22. 22. 22© Copyright Society3 2015 Copying or distribution is prohibited #Society3 FundersMart
  23. 23. 23© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Opening doors for 95% of accredited investors Exit Anytime Smart Money Matcher From commission to subscription Starting in June FundersMart
  24. 24. 24© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Your company will shape up much faster With a broader investor landscape Expect 30 investors helping you instead of 3 Expect 0.5% ownership per investor not 10% Expect smart money because you can select Expect a faster process
  25. 25. 25© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Next steps? 1. Grab any of us (415) 656-8700 or online gofundersmart@society3.com @Society3grp | fb.com/society3 2. If you are going fundraising any soon, we’ll work with you individually to help you get ready beyond the pitch 
  26. 26. 26© Copyright Society3 2015 Copying or distribution is prohibited #Society3 Society3.com/presentations
  27. 27. 27© Copyright Society3 2015 Copying or distribution is prohibited #Society3 © 2015, Society3. all rights reserved. This content is protected under the copyright law of the United States. It is prohibited to make full or partial copies or extractions of this documentation without the explicit written approval from the Society3 Group Inc. S3 Accelerator, a Society3 organization | 201 Mission St, S1200 | San Francisco, CA 94105 | (650) 384-0057 +1 (415) 656-8700 society3.com/AxelS Society3.com Online presences: http://society3.com/society3
  28. 28. 28© Copyright Society3 2015 Copying or distribution is prohibited #Society3 By building harbors and aqueducts, Pharaoh Ramses was first in creating unimaginable wealth. Role model for all Kings and Caesars for nearly 5,000 years. (Society1) In the industrial revolution incremental value created unimaginable wealth for tens of thousands of people (Society2) Millions of startups will create even more incremental value, now all over the world and unimaginable wealth for everybody (Society3) From one – to many – to all What gave us the name Society3

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