Fundraising 101

1. FUNDRAISING 101

2. FUNDRAISING IS FUN AND ESSENTIAL TO YOUR BUSINESS It’s also be frustrating, time consuming, leads to head aches, insecurity, and even moments of pure hopelessness.

3. M y B a c k g r o u n d • 1 9 7 5 • Ve n t u r e Pa r t n e r a t G o l d e n G a t e Ve n t u r e s • Fo r m e r E n t r e p r e n e u r • V i c e C h a i r m a n E c o n o m i c D eve l o p m e n t B o a r d • H a r v a r d B u s i n e s s S c h o o l • S t a r t u p m e n t o r • A n g e l I nve s t o r • D a d , h u s b a n d , c yc l i s t , r u n n e r a n d b u i l d s G u n d a m R o b o t s

4. THE CURRENT LANDSCAPE

5. “I used to look at equity and think every companywas going to be the next Facebook. Now when I see equity I’m like, ‘That’s nice but I want it in actual money” “Dead Unicorns” “Frightening burn rates” ”VCs want to see revenue”

6. “I love China. I just sold an apartment to someone from China. And I am suppose to dislike them?”

7. A Digital Overview of Southeast Asia TOTAL POPULATION ACTIVE INTERNET USERS ACTIVE SOCIAL MEDIA USERS MOBILE CONNECTIONS ACTIVE MOBILE SOCIAL USERS 627.7 MILLION 252.4 MILLION 232.9 MILLION 776.3 MILLION 199.7 MILLION URBANISATION: 45% PENETRATION: 40% PENETRATION: 37% vs. POPULATION: 124% PENETRATION: 32% SOURCES: InternetWorldStats, APJI, e27, Reuters, Facebook, WeAreSocial

8. Understanding the landscape Reduced commitments means it will be harder to fund raise and investors have a multitude of choices so they can be picky. Good companies (and funds) are always able to raise money.

9. Understanding the landscape Investors targeting Emerging Markets have a different proﬁle than investors who invest in Developed Markets. Fund managers raised US$20 billion for Emerging Asia-focused private funds and deployed US$17 billion (2015), representing 15% and 14% declines compared to 2014. Many factors may be contributing to this slowdown—such as decelerating economic growth and volatile public equity markets in China, as well as currency depreciation across the region.

10. INVESTOR TYPES • Angel Investors • Venture Capital Funds • Public Pensions • Fund of Funds • Corporates and accelerators • Endowments and foundations • Family ofﬁces • Banks and ﬁnancial institutions • Sovereign wealth funds • Others

11. HOW DO I START FUNDRAISING

12. GET YOUR FEET WET!

13. GET A HEAD START…SO START BUILDING UP YOUR NETWORK AND DO RESEARCH

14. NOTABLE VC FUNDS IN SOUTHEAST ASIA Seed Series A Series B Growth

15. Mapofthemoney.com

16. 0 100 200 300 2010 2011 2012 2013 2014 2015 2016* Seed Series A Series B Series C NUMBER OF TECH VENTURE DEALS IN SOUTHEAST ASIA *Projected from Q1 2016 229 137 42 15

17. GETTING THE HOUSE IN ORDER • Prepare fundraising plan • Clear pitch deck • Pre marketing • Fundraising team • Marketing material • Marketing campaign and roadshow • Time table (plan the ﬁrst and ﬁnal close) • Roadmap

18. THE PITCH DECK • Can you explain your company / strategy and business model to your friends & family? • Value proposition. Create an Unstoppable Vision of Promise • Are you solving a problem and can you quantify the problem • What is your solution • How are you creating value / what’s the product-market ﬁt • Describe your (small) scale machine • Team and track record / advisors

19. THE PITCH DECK - FINANCIALS • Financial summary • Revenue vs Market share • Projections • Gross vs Nett Margins • Fit between product-market ﬁt and targeted revenue • Use of Funds • Investment strategy*

20. INVESTMENT STRATEGY • Equity versus Convertible • Employee Stock • Prepare for your next round - not overdoing valuation • Strategic investor

21. INVESTOR MANAGEMENT

22. INVESTOR AND ENTREPRENEUR IS A LONG TERM PARTNERSHIP

23. Get your investors involved • Active communication….you might need these investors in your next company • Reports, lessons learned, updates, etc • How they can help

24. Thank You @goldengatevc @michaellints

Fundraising 101

Michael Lints

Fundraising 101