Hacks/Hackers Connect London, February 2016

1. JOURNALISM
FUNDRAISING
Things to consider
when raising money
for your work
Matt McAlister

2. QUESTIONS YOU MUST KEEP ASKING YOURSELF
➤ Why are you raising money? When are you raising the next
round? Why not now?
➤ How much do you need? What will you spend it on? How
does your plan change if you get less than you asked? How
about if you get more than you planned?
➤ Who will benefit from what you are doing? What do they get
out of supporting you? How will you help them with their
goals and agendas?

3. DIFFERENT SOURCES FOR DIFFERENT NEEDS
You benefit
Cost of money
Others benefit
Foundations Friends Investors

4. DIFFERENT SOURCES FOR DIFFERENT NEEDS
You benefit
Cost of money
Others benefit
Foundations Friends Investors
• Lengthy process
• Few options
• Large grants
• Simple requirements

5. DIFFERENT SOURCES FOR DIFFERENT NEEDS
You benefit
Cost of money
Others benefit
Foundations Friends Investors
• Major outreach challenge
• Hard to raise enough
• Few strings attached
• Repeatable

6. DIFFERENT SOURCES FOR DIFFERENT NEEDS
You benefit
Cost of money
Others benefit
Foundations Friends Investors
• Few invest in journalism
• Must have a solid plan
• Considerable pressure
• The VC machine works
• Lots of future potential

7. THE PROCESS: GRANTS
Call for entries opens
or general application
➤ Pitch ideas in response to
what the funder wants.
➤ Get some other folks
involved.
➤ Fill out a form on the
foundation web site…
➤ …Don’t miss the
deadline!
Review
➤ Funder contacts short list
of favourite applications
➤ They need to know that
you are real and that you
mean what you said
➤ They need to check your
assumptions in your
plan…can you do what
you said you could do for
the amount you want?
You win!
➤ Fill out some docs.
➤ Give bank details and
sign contracts
➤ Cash shows up in your
bank account.
➤ Get to work!
Assessment
➤ Check in now and again.
Keep them informed.
➤ Interview with program
officers to ensure you did
what you said you would
do.
➤ Prepare things that they
can use internally to talk
about you
3-6 months lead time 3-6 months later 1-2 months later 12 months later

8. THE PROCESS: INVESTORS
Investor pitch
➤ Prepare a 10-slide
presentation with your
idea, your team and your
plan.
➤ Get it out there. Try to
find a sponsor investor.
➤ Be flexible about how
much you want to raise
but be specific about how
much you need.
Negotiate
➤ Get a lawyer who can
translate deal terms…
have you formed the
company?
➤ Decide: Are you ready to
give up control? How
much? Would you even
know if you gave up too
much control?
➤ Frequent emails and calls
at strange hours
You win!
➤ Fill out some docs.
➤ Give bank details and
sign contracts
➤ Cash shows up in your
bank account.
➤ Get to work!
Assessment
➤ Board meetings and
regular updates…no
surprises!
➤ Are you ready to raise
more? Why not?
➤ Always be raising
money…or find a CEO
to do it.
1-3 months Days Quarterly1-3 months

11. “Some online media ventures
are finally perceived as being
sophisticated and agile
tech companies, as well…”

16. AVOID BAD OUTCOMES…
➤ Don’t assume people with money
understand what motivates you.
Develop your story.
➤ Don’t ask for money if you’re unsure
what you want to get out of it. Be clear
(and honest!) about your intentions.
➤ Underfunded projects are
disappointing for everyone. Seek more
than you need.
➤ Spend as much time planning your
costs as you do articulating your
vision. Get someone to challenge your
assumptions.
➤ Research your funding source before
you pitch. Pitching off-target may
discredit you in the future.
https://flic.kr/p/a56BDB

17. CREATE POTENTIAL FOR SUCCESS…
➤ Never stop trying. Failure only
exists if you don’t learn from
your experience.
➤ Never stop networking. Help
comes from many surprising
places.
➤ Give others the power to join
your cause and become part of
your story.
➤ Understand how funders
benefit by backing you.
➤ Get familiar with the jargon.
https://flic.kr/p/bEWSum

18. Resources
YCombinator - Startup Documents
FeldThoughts - Term Sheet Series
DocuSend - Startup fundraising study
The Entrepreneur’s Guide to Business Law

19. THANK YOU!
Matt McAlister