Raising Money From Angels and VCs

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Raising Money From Angels and VCs

  1. 1. Raising Money From Angels and VCs Matt Hulett Dec 2012
  2. 2. Welcome To Thunderdome
  3. 3. Raising Money Is Damn Hard• For seasoned and Series A Series B Series C successful, Total 21 31 23 entrepreneurs its still VCs Total 2 2 2 hard term• Most entrepreneurs sheets cannot raise
  4. 4. TIPS FOR RAISING MONEY
  5. 5. Prepare Before You Start1. Get a great lawyer – actually more of a consigliere2. Prepare like a salesman – Keep it exclusive – Sales pipeline mentality – Have a business plan – Have a plan for the capital proceeds3. Build a sexy deck – Show momentum – Define a big market – Establish confidence – Wow them
  6. 6. Have A Great Lawyer
  7. 7. Seattle’s Top Consigliere
  8. 8. RAISING MONEY IS A SALES PROCESS
  9. 9. Keep It Exclusive
  10. 10. Build A CRM Process• Create funnel management on each prospect – build prospects from “hot”, “warm,” “lukewarm,” “dead”• Tackle 3-4 at a time• Push interested parties to declare interest• Find the right partner• Be cognizant of the venture B.S. – “we like you but we’d like to see more market traction” – this is a no
  11. 11. SEXY DECK EXAMPLES
  12. 12. Build A Sexy Deck• Show momentum• Define a huge market and how you plan to attack it• Establish confidence in you, your team, and the company• Wow them – pitch your company as if you were pitching a movie
  13. 13. Bad Example Of Momentum Chart Titles are Helpful 90 25 80Same With the Y Axis, But Remember, Its Turned 70 20 on The Side, So Harder to Read 60 Se rie s1 Se rie s2 50 15 East Se rie s3 Se rie s4 Se rie s5 40 West Se rie s6 Se rie s7 30 10 North Se rie s8 Se rie s9 Se rie s10 20 Se rie s11 5 10 0 0 1 4 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 If You Dont Tell Me The X A xis, How Will I Know What it Is?
  14. 14. Good Example Of Momentum800,000 600,000700,000 500,000600,000500,000 400,000400,000 300,000300,000 200,000200,000100,000 100,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Apr May Jun Jul Aug Sep Oct Nov Dec800,000 800,000700,000 700,000600,000 600,000500,000 500,000400,000 400,000300,000 300,000200,000 200,000100,000 100,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Apr May Jun Jul Aug Sep Oct Nov Dec
  15. 15. Better Example Of Momentum
  16. 16. A Good Seattle Example
  17. 17. DEFINE A BIG MARKET
  18. 18. Show Them Where You FitInsert New Entrant Insert Traditional This is You Competitors Competitors Revenue:  Revenue:  Revenue: Innovation:  Innovation:  Innovation:  Example of some market share proof points in this section
  19. 19. Market Share and Total Addressable Market Market share Investors like disruptive plays that tackle big markets Even a small % of execution on your part is a big business 19
  20. 20. Make Them Feel Confident In You, The Team, The Company• If you are weak pretend you are strong – Build a world-class Board, advisory board, or management team – Coming from a big company without startup experience….prepare to fight skepticism• If you a strong…well, you are doing ok – If you are a successful serial entrepreneur – Relationship with a VC
  21. 21. NEVER LEAVE THE ROOM WITHOUT THE “ASK”
  22. 22. “Ask” Slide – Raising $nM To Accelerate Growth Total=$nM• Financing History – Explain what you’ve done Project A• Current Raise Project B – Get detailed on your use of Project C proceeds• Start with what you told Tech Acq them and then tell them CAPEX again… Other $0.0 $1.0 $2.0 $3.0 $4.0 Millions 22
  23. 23. In Conclusion1. Get a great lawyer – actually more of a Consigliere2. Prepare like a salesman – Keep it exclusive – Sales pipeline mentality – Have a business plan – Have a plan for the capital proceeds3. Build a sexy deck – Show momentum – Define a big market – Establish confidence – Wow them
  24. 24. Thank You Email: matt@matthulett.comPersonal blog: startupwhisperer.com

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