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Intro to Austin Fundraising

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Intro to Austin Fundraising

  1. 1. Intro to Austin FUNDRAISING by @joshuaBaer
  2. 2. Joshua Baer Founder & Executive Director
  3. 3. Disclaimer
  4. 4. Disclaimer • I’m not a lawyer
  5. 5. Disclaimer • I’m not a lawyer • I’m not a financial advisor
  6. 6. Disclaimer • I’m not a lawyer • I’m not a financial advisor • This isn’t investment advice
  7. 7. people move here every day150
  8. 8. top of every list
  9. 9. What’s different about Fundraising in Austin?
  10. 10. Bootstrap first
  11. 11. revenue focused
  12. 12. EXPERIENCED
 Teams
  13. 13. How to meet investors 1. Leverage your personal network 2. Go where the investors are - bars, coffee shops, events, Capital Factory 3. Follow them on Twitter 4. Create an AngelList profile (and email it to me) 5. Post to Austin Angel Investors Facebook group 6. Office Hours with CTAN 7. Epic Office Hours at Capital Factory 8. Apply for an Accelerator 9. Participate in pitch events and competitions
  14. 14. Twitter
  15. 15. Startup Lawyers • KHGR Evan Kastner • Jones-Spross Brian Spross • Wilson Sonsini (WSGR) Brian Beard & Paul Tobias • Andrews-Kurth Matt Lyons • DLA Piper Paul Hurdlow • Sprinkle Law Steve Sprinkle (IP) • Jose Ancer
  16. 16. venture capital • Silverton Partners @Jon_Bassett, Morgan Flager • Live Oak Venture Partners @VShamapant (Venu) • Mercury Fund @TexasVC (Aziz Gilani) @NedHill • S3 Ventures (enterprise + health) @RajivBala • Sante Ventures (biotech) Kevin Lalande • Offset Ventures Chris Pacitti (Austin Ventures)
  17. 17. venture capital • 500 Startups @DaveMcClure • Disruption @PaulSingh • ff Ventures @John_Frankel • First Round @JoshK (Kopelman) • FLOODGATE @M2Jr (Mike Maples, Jr.) • Mohr Davidow @BDStolle (Bryan Stolle) • Sutter Hill Ventures @SamPullara
  18. 18. Angel investors • Capital Factory Fund @JoshuaBaer @MelliePrice @AndrewBusey • ATXSeed Chris Shonk • Individual Angels @RossInAustin (Ross Buhrdorf) @BazaarBrett (Brett Hurt) @maharg (Dan Graham) @seats (Jason Seats) @AmericanCEO (Joel Trammell) @DeepEddyCEO (Clayton Christopher), Rony Kahan, Joe Liemandt, Tom Meredith
  19. 19. • One of the most active angel groups in the country • Not just tech • Quarterly application cycle • Monthly office hours • Rick Timmins is the Chairman (and CF Mentor) • Claire England is the new Executive Director
  20. 20. Find investors, introductions & advice at Epic office hours
  21. 21. office Hours • Think of this as speed dating • Don’t expect them to commit on the first date • Research their background beforehand • Professional on LinkedIn • Investments on AngelList • Personality on Twitter and Facebook • Ask for a followup meeting to show progress
  22. 22. Accelerators • Austin Technology Incubator (UT affiliated) @ATI_UT • Bunker (veterans) @TheBunkerAustin • Capital Factory (tech) @CapitalFactory @JoshuaBaer • International Accelerator @IntlAccelerator • Longhorn Startup Lab (UT Austin students) @LonghornStartup • SKU (consumer packaged goods) @SKUatx (formerly Incubation Station) • SXSW Accelerator • Techstars (tech) @Techstars @Seats • Medical Innovation Labs (medical devices) • Unltd USA (social good) @UnLtdUSA Intro to Austin Accelerators 2nd Tuesday of each month at 4pm
  23. 23. Pitch Events • Texas Venture Labs Investment Competition (February) • SXSW Accelerator (March) • Capital Factory Demo Day at SXSW (March) • Techstars Demo Day (June 2015?) • Global Venture Labs Investment Competition (May) • Capital Factory Demo Day at Startup Week (October) • Innotech Beta Summit (October) • SKU Demo Day • ATI Clean Tech & Wireless Forums • CTAN Presentation Day (5x) • House of Genius
  24. 24. Blogs • Paul Graham - How to Raise Money
 paulgraham.com/fr.html • VentureHacks
 venturehacks.com/archives • Wealthfront - VC Economics
 blog.wealthfront.com/venture-capital-economics/ • Brett Hurt - Lucky7
 lucky7.io • Gordon Daugherty - Shockwave
 shockwaveinnovations.com • Kip McClanahan - ReOverthinking
 reoverthinking.com • José Ancer - Silicon Hills Law
 siliconhillslawyer.com • Joshua Baer - Austinpreneur
 austinpreneur.com
  25. 25. capital factory Austin’s Center of Gravity for Entrepreneurs Last year 32,000 entrepreneurs, programmers and designers gathered day and night for meetups, classes and coworking. Entrepreneurs come to Capital Factory to Hone skills meetups and hackathons Find a co-founder Build a Minimum Viable Product Meet angel investors and VCs Find lighthouse customers Keep costs low Grow your team
  26. 26. 46,000 Square Feet full of Entrepreneurs
  27. 27. programmers and 
 entrepreneurs 700Meetups and 
 Hackathons 32,000
  28. 28. classroom teaching skills startups need
  29. 29. Some of the meetups
  30. 30. THe Blueprint • Community Center • Coworking pace • Mentoring • Fund VIDEO STREAMING Follow @Austintechlive
  31. 31. coworking starts at $200/month
  32. 32. As your company starts to grow reserve Dedicated Desks
  33. 33. Private offices Sound proof and secure
  34. 34. Private offices teams from 2-10 people
  35. 35. phones and tablets available in the Device Lab
  36. 36. Google glass available in the Device Lab
  37. 37. DEVICE Lab 3D Printers and more
  38. 38. DEVICE Lab 3D Printers and more
  39. 39. Find investors, introductions & advice at office hours
  40. 40. Peer Roundtables Learn from other entrepreneurs
  41. 41. SXSW and startup week demo dayS
  42. 42. sxswStartup Village
  43. 43. Happy hours bringing people together
  44. 44. DENSITY DRAWS IN EVERYONE THAT 
 STARTUPS WANT TO MEET
  45. 45. VIP Guests • Bram Cohen, founder of BitTorrent • Michael Dell, founder of Dell • Richard Garriott, founder of Ultima Online • Bob Metcalfe, inventor of Ethernet • Alexis Ohanian, founder of Reddit • Peter Thiel, founder of Paypal • Slash, Guns & Roses • Stephen Wolfram, founder of Mathematica
  46. 46. Accelerator • Introductions to angel investors, mentors, customers, strategic partners, employees • First priority on offices and desks at Capital Factory • Access to $50,000+ in matching funds 
 from Capital Factory, Silverton, FLOODGATE and our AngelList Syndicate
  47. 47. Cratejoy Syndicate
  48. 48. Revolutionizing the $24 Billion self storage industry 180 employees - $26 million funding insight Partners
  49. 49. wordpress hosting Platform for business 150 employees - $18 million funding Northbridge
  50. 50. $6 Million Funding CHarles River Ventures, A16Z
  51. 51. Lots more… • Aceable • Goodybag • Chiron Health • Zing • Nuve • Pristine.io • Smart Picture Tech • Lynx Laboratories • LanternCRM • Impossible Ventures • eRelevance Corp • Pingboard • Togga • Curb • Kenguru • Aunt Bertha • Weeva • RealMassive • ManagerComplete • ihiji • TripChamp
  52. 52. Apply online • Coworking 
 http://capitalfactory.com/join • Accelerator 
 http://angel.co/capitalfactory/apply • Back the Syndicate 
 http://angel.co/capitalfactory/syndicate
  53. 53. equity or Convertible note? • Most companies begin with a convertible note and then do a priced round (then repeat) • Convertible notes are entrepreneur-friendly • Only do a priced round with an experienced investor to lead and set the price • SAFE docs
  54. 54. Valuation • Average is $3m • On a note, think of the cap as the valuation • Higher because of traction or track record - up to $8m • Higher because it is capital intensive • If you have to justify it, then it’s too high • Bigger is not always better
  55. 55. time • Usually takes 6-12 months • Really fast is 2-3 months • If only 2-3 investors can happen in 1 month • Sometimes drags out over 18 months • Entrepreneurs usually think it’s going to happen faster
  56. 56. Get used to hearing NO
  57. 57. Say you’re going to do something. then do it.
  58. 58. if you found this helpful Please help someone else
 http://atxstartupscene.com
  59. 59. ask me anything • Angel Investors • Venture Capital • Incubators/Accelerators • Banks • Lawyers • Dev Shops • Associations • Hack-a-thons • Finding a Co-Founder • Blogs • Hardware • Women in Tech • Capital Factory • Where do investors hang out?
  60. 60. Entrepreneur training • ATI SEAL • Rice Alliance Entrepreneur’s Workshop • Tech Ranch VentureForth • General Assembly • IronYard • MakerSquare
  61. 61. Banks • Chase Jonathan Lee, chase.com • Silicon Valley Bank Jonathan Miller • Square 1 Bank • Comerica
  62. 62. paperwork • Company Formation • Bank Account • Vesting • Docusign
  63. 63. Up and coming • DrillingInfo • Edgecase • Eagle Eye Networks • Impossible Ventures • Main Street Hub • Outbound Engine • PostUp • Spredfast • Sparefoot.com • Spiceworks • Umbel • uShip • WP Engine
  64. 64. Recent Success • Black Locus > Home Depot • Dachis Group > Spriklr • Food on the Table > Food Network • Gazzang > Cloudera • Mass Relevance > Spredfast • MapMyFitness > Under Armor • Ridescout > Car2Go • Spanning > EMC
  65. 65. First Time
  66. 66. Experienced teams
  67. 67. Syndicates
  68. 68. angels vs. VC’s
  69. 69. Crowdfunding • Kickstarter • Indiegogo • Able • Onevest • Microventures
  70. 70. Lines not dots
  71. 71. FACEBOOK • Austin Startups
 http://facebook.com/groups/austinstartups • Capital Factory Members 
 http://facebook.com/groups/cfcoworking • Austin Angel Investors 
 http://facebook.com/groups/atxangelinvestors
  72. 72. COST • At least $5,000 in legal fees, as much as $100,000 • Consumes a lot of time. Meetings after meetings.
  73. 73. Smart Money • Brings some benefit other than the cash • Introductions to customers • Relevant industry experience • Help with recruiting talent
  74. 74. Bad Money • Comes from illegal source • Pain in the ass • Unresponsive
  75. 75. if you found this helpful Please help someone else
 http://atxstartupscene.com

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