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Funding your
(design) venture.
Ken Bautista

@kenbautista
funding
Why do you need capital?
new product
hiring people
infrastructure
marketing expansion
"cash is oxygen for your business"
there's no magic pot of money
"How much capital, when and from whom?"
1.
Not all funders
are alike.
Meet the funders
Family + Friends
• Easy and quick
• Looking for shorter term returns
• Can potentially have an impact on
your personal rel...
The Lender
• Loans, credit and leasing
• Lenders, not investors
• Lenders want to see a financial
track record
• Good for ...
The Crowdfunder
• $4.4B in crowdfunding pledged in
2015 alone
• Rewards-based vs equity-based
• Kickstarter and Indiegogo ...
The Grantor
• Grants aren't free money
• Always come with strings
(reporting, expense restrictions)
• Time spent on applic...
The Angel
• Equity or debt investment
• Individuals or work in groups
• Don't like publicity (don't want
random people pit...
The VC
• Invests other people's (LPs) money
through a fund
• Experts at reading people
• Invest in what other VCs invest i...
The Customer
• Best capital comes from your
customer (sales)
• Pre-sales can be leveraged
• Customers can also become
inve...
Understanding your funders
• What drives them?
• Why should they spend money with you?
• You pick them, not the other way ...
2.
Fundraising is
all about
momentum.
Fundraising is ___________.
never ending
necessary
hard
not the start
Big idea!
Quit job!
Raise money!
Cash money!
Source: Paul Graham
2xStartups that don't prepare for investment in advance take
twice as long to raise capital
Problem
Top 3 problems
Solution
Top 3 features
Unique Value
Proposition
Why are you different
and worth paying
attention t...
Problem/Solution Fit

(Customer Development)
Product/Market Fit

(Customer Creation)
Scale
(Company Growth)
Problem-soluti...
Minimum viable everything
• Minimum Viable Product (MVP) is the "version of a new product
which allows you to collect the ...
Turn hypotheses into facts
• Traction is the new intellectual property
• What are the drivers of the business model
• Incl...
3.
Funding is 

only the means.
Building unicorns
rise of the niche manufacturer
the barriers to building are gone
shopify.com
makersrow.com
quirky.com
quirky.com
square.com
techshop.ws
nycfashionproductionfund.com
designerfund.com
firstbatch.org
refinery29.com
gathernetwork.tv/subscribe
Don't wait, start now.
kenbautista.com
Gathering big
dreamers and
community builders
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
Funding your (design) venture
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Funding your (design) venture

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From bootstrapping to investors, finding ways to fund your creative venture can be challenging. Learn about alternative ways of funding your product and company, understanding investor speak, and how fundraising is all about momentum.

Published in: Business
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Funding your (design) venture

  1. 1. Funding your (design) venture. Ken Bautista
 @kenbautista
  2. 2. funding
  3. 3. Why do you need capital? new product hiring people infrastructure marketing expansion "cash is oxygen for your business"
  4. 4. there's no magic pot of money
  5. 5. "How much capital, when and from whom?"
  6. 6. 1. Not all funders are alike.
  7. 7. Meet the funders
  8. 8. Family + Friends • Easy and quick • Looking for shorter term returns • Can potentially have an impact on your personal relationship • Set realistic expectations • Keep terms simple
  9. 9. The Lender • Loans, credit and leasing • Lenders, not investors • Lenders want to see a financial track record • Good for financing for larger capital expenses • Good as bridge capital against accounts receivable
  10. 10. The Crowdfunder • $4.4B in crowdfunding pledged in 2015 alone • Rewards-based vs equity-based • Kickstarter and Indiegogo are the top global crowdfunding sites • Validate ideas through the crowd • Managing expectations and communication is key
  11. 11. The Grantor • Grants aren't free money • Always come with strings (reporting, expense restrictions) • Time spent on applications could be better spent on the business • Grants don't count as revenue • Abrupt impact on the pace and rhythm of growth
  12. 12. The Angel • Equity or debt investment • Individuals or work in groups • Don't like publicity (don't want random people pitching them) • Best for early stage, take more risk at the beginning • Always ask who else they've invested in and when they expect their money out
  13. 13. The VC • Invests other people's (LPs) money through a fund • Experts at reading people • Invest in what other VCs invest in • Win by predicting what will go big sooner than others • Want startups to go public (IPO) • Want to invest a lot of money, take board seats
  14. 14. The Customer • Best capital comes from your customer (sales) • Pre-sales can be leveraged • Customers can also become investors through strategic partnerships
  15. 15. Understanding your funders • What drives them? • Why should they spend money with you? • You pick them, not the other way around • Build relationships with your investors • Over communication is better
  16. 16. 2. Fundraising is all about momentum.
  17. 17. Fundraising is ___________. never ending necessary hard not the start
  18. 18. Big idea! Quit job! Raise money! Cash money!
  19. 19. Source: Paul Graham
  20. 20. 2xStartups that don't prepare for investment in advance take twice as long to raise capital
  21. 21. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Why are you different and worth paying attention to? Unfair Advantage Can't be easily copied or bought Customer Segments Target customers Key Metrics Key activities to measure Channels Path to customers Cost Structure Customer acquisition costs, distribution, people, etc. Revenue Streams Revenue model, life time value, revenue, gross margin PRODUCT MARKET
  22. 22. Problem/Solution Fit
 (Customer Development) Product/Market Fit
 (Customer Creation) Scale (Company Growth) Problem-solution fit Proposed MVP Proposed funnel(s) Product/market fit Validate business model Conversion optimization Scale execution • Digital products - Low barriers to development (code), distribution to users (internet), cheaper to scale • Physical products - Need lots of capital, high R&D, longer time to market, expensive proof of concept, potential manufacturing issues, expensive to scale etc. Customer development
  23. 23. Minimum viable everything • Minimum Viable Product (MVP) is the "version of a new product which allows you to collect the maximum amount of validated learning about customers with the least effort" (Eric Ries) • Getting the data you need to get to the next stage • Minimum viable product • Minimum viable brand • Minimum viable operations
  24. 24. Turn hypotheses into facts • Traction is the new intellectual property • What are the drivers of the business model • Include yourself in financial modelling • Build a customer acquisition plan (not a marketing plan) • Pitch + refine, pitch + refine • Know your business so well that it shows it's YOURS
  25. 25. 3. Funding is 
 only the means.
  26. 26. Building unicorns
  27. 27. rise of the niche manufacturer
  28. 28. the barriers to building are gone
  29. 29. shopify.com
  30. 30. makersrow.com
  31. 31. quirky.com
  32. 32. quirky.com
  33. 33. square.com
  34. 34. techshop.ws
  35. 35. nycfashionproductionfund.com
  36. 36. designerfund.com
  37. 37. firstbatch.org
  38. 38. refinery29.com
  39. 39. gathernetwork.tv/subscribe
  40. 40. Don't wait, start now.
  41. 41. kenbautista.com Gathering big dreamers and community builders

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