Fundraising Tips for Women Entrepreneurs

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Angela Lee, Founder of 37 Angels (a community of women investors committed to funding early-stage startups), and Sirk Roh, Chief Operating Officer for Early Growth Financial Services, provide insights into the fundraising process and how women in particular can better navigate the path from targeting funding to closing a round.

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Fundraising Tips for Women Entrepreneurs

  1. 1. Fundraising Tips for (Women) Entrepreneurs #womenentrepreneur July 23, 2014
  2. 2. Agenda • Pitch deck fundamentals • Funding sources • Helpful tips • Q&A
  3. 3. Pitch Deck Overview 3 • Keep it simple (8-10 pages, 24-30 font) • No excel spreadsheets (save for diligence) • If you can replace words with a simple graphic, do it • Test your pitch by pitching to 10 people and asking them to describe your company in 1 sentence
  4. 4. Tagline: Ideally 10 words or less Investor Deck Month Year 4 Logo
  5. 5. The Problem What problem are you trying to solve? 5 • Simple picture/graphic always helpful • If this is not a commonly understood industry, start by giving audience context
  6. 6. Your Solution How is your company going to fix this problem? 6
  7. 7. Why your team is the right team Name, Title • Accomplishments • Relevant previous roles (logos ok) 7 Name, Title • Accomplishments • Relevant previous roles (logos ok) Next key hire, title (if relevant) Strategic Advisors (if relevant)
  8. 8. What is The Market Opportunity? Differentiate between • TAM: Total Available Market • SAM: Serviceable Addressable Market • SOM: Serviceable Obtainable Market 8
  9. 9. Business Model • How you will make money • How you are pricing your product • How you will acquire customers* 9 • Cost to acquire (ideally trending down as you get more targeted) • Process to acquire sales (channel, learnings) • Sales pipeline (if B2B) • Lifetime value
  10. 10. Traction to date What metrics matter to your business? 10 $Y RevenueX Users Z Transactions • Additional Key Performance Indicators (KPIs) could be average time on site, % repeat users, % paying customers, # letters of intent from B2B customers, etc.
  11. 11. Why your company is special 11 Dimension 1 Dimension2 Feature Feature Feature Feature • Have a holistic list of competitors • Consider indirect or future competitors
  12. 12. Investing Details: Call to Action! 12 • Size of your round (raising $500K) • Terms of your round (cap/valuation) • What you’ve raised so far (raised $250K) • Top three things the money will be used for • Background of lead investors or other strategic investors (if relevant)
  13. 13. Agenda • Pitch deck fundamentals • Funding sources • Helpful tips • Q&A
  14. 14. Sources of capital Founders Company Revenue Friends & Family VCs & Angels Other • Very high risk • Already investing “sweat equity” • “Bootstrapping” • How long before profitable / break even? • Most expensive capital to raise • How will you feel if you fail? • Not the default • Gives away equity / control • Bank loans, government grants, business plan competitions, venture debt, strategic investors 14
  15. 15. Ways to value a company 15 % of equity diluted VC Method • Raise $X needed for 12-18 months • Each round, typical dilution = 20-25% • $X ÷ Post Money Valuation = 20-25% • Estimate company acquisition price • Reverse engineer today’s value based on VC’s required returns Berkus Method • Good Idea: $500K • Working Prototype: +$500K • Quality Management Team: +$500K • Strategic Relationships: +$500K • Product Rollout or Sales: +$500K
  16. 16. Agenda • Pitch deck fundamentals • Funding sources • Helpful tips • Q&A
  17. 17. Fundraising tips • Let the best pitcher pitch • Know your numbers really well • Approach fundraising like a job search – be targeted and do your research • Pitch the company, not the product
  18. 18. Questions? Angela Lee www.37angels.com @37angelsNY Sirk Roh www.earlygrowthfinancialservices.com @EarlyGrowthFS

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