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How To Hack 500 To Raise Money (500 Startups Batch 6)


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How to use 500 Startups to fundraise and how 500 can/will help them. Presented to Batch 6 of the Accelerator program. (Spring 2013)

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How To Hack 500 To Raise Money (500 Startups Batch 6)

  1. 1. How 500 Will Help You Raise Money How to Hack 500 to Raise Money
  2. 2. NOT 500#NoFairyGodmother
  3. 3. 500!!!#Hustle
  4. 4. Case Study:Founders: Ben Jabbawy, Jake CohenStart of Batch 5: small F&F raisedEnd of Batch 5: $1M closed, led by notable VC 1ST WEEK @ 500: Built pipeline of 120+ investors. (investors of startups in similar space, relevant 500 mentors, etc) Prioritized each investor, identified warm connections, then HUSTLED. Sat down w/ Christine to review pipeline, ask for advice on prioritizing, suggestions for investors to add. Introduced them to 3-4 investors that (1) she had a good relationship with, (2) thought were a strong fit for Privy. Tapped into 500 Mentors. Built strong relationship w/ one mentor, who ended up doing 1st angel investment in them. VCs/angels back home (Boston) became very interested once they joined 500. Privy sent regular updates to folks. One VC who said no before 500, now is leading their round. Scoured Demo Day attendee list.
  5. 5. Case Study:Founders: Tracy Lawrence, Jeff SchenckStart of Batch 5: $0 (sans 500’s investment)End of Batch 5: $1M closed, led byLowercase Capital (Chris Sacca) Built investor pipeline, then sat down w/ Christine to review/prioritize. Made direct intros to a small # of investors she knew well. Hustled to build relationships within 500 - attended most talks & met speakers, actively used mentor office hours, sat down w/ 500 team. Got to know fellow 500 founders. Most effective intros came from successful founders that an investor had invested in.
  6. 6. Use The Power of 5001. You’re now a 500 Startups company. Milk that for all it’s worth.2. First build relationships w/ 500 companies & mentors, and yes EVEN 500 [INVESTMENT] PARTNERS. Don’t make “the ask” until you do that.3. Sit down w/ 500 Partner & review your fundraising strategy & investor pipeline. We will offer our advice. 500 will also do direct intros, but selectively.4. Groom your AngelList profile. Help each other trend. 500 will approve connections, but selectively. (and YMMV)5. Demo Days: We will share the attendee lists beforehand. Take advantage of this.6. Mentor Notes: Mentors can invest in Batch 6 companies (you make the final call). However, refer to Bullet #2 above.
  7. 7. Parting WordsRelationships are everything. 500 is a family, but you needto get to know people too.Fundraising is hard. Hustle, persistence, and follow-through are key. Track everything. Always be CLOSING.Nothing is ever a closed door. Stay optimistic.You can’t convince people to invest in a crappy product &team. So don’t forget about #1.