Startup Bootcamp - Investment Session; How to Raise

2. It all starts with you. And FFF!
Hold your breath as long as possible.

3. Pre-Seed How long are (were) you
bootstrapped?
Why?
What worked?
What didn’t?
15
Minute
Exercise

4. Seed Capital
Ideation
Stage
initial
research and development

5. Angel
Investors
Usually individuals with successful exits who
decide to invest money in other startups
High net worth individuals who decide to
invest in companies due to the lucrative growth
potential and better returns
Angels often invest their own money and at
one of the most riskiest stages for startups
There are several platforms such as these, to
tell you more about angel networks:
AngelList
FundersClub
SeedEquity Ventures, LLC

6. Syndicate
Funding
syndicate
deals
angels lead investments
individual investors
to join

7. Crowd
Funding
Donation-based rewards-based
many
donors
don’t get any equity
crowdfunding platforms
GoFundMe
Kickstarter
IndieGoGo

8. Equity
Crowd-
Funding
A variant of crowdfunding
Allows founders to give investors an equity in
the company
Equity crowdfunding was allowed in several
countries in Europe, Asia Pacific but was
banned in US. Latest SEC ruling lifted the ban
and allows equity crowdfunding in US as
well.
Notable equity crowdfunding platforms
include:
Crowdfunder
Seedrs
WeFunder

9. Accelerator
Programs
Fixed-term, cohort-based programs that
provide mentorship, guidance, space and
connections and culminate in a public pitch
event or demo day
Selection process is highly competitive
Teams which get selected get an investment of
$10K - $25K in exchange for equity
Few accelerators such as Microsoft Ventures
don’t ask for equity
Some of the well-known accelerators include:
Y Combinator
AngelPad
Techstars

10. Incubators
Incubators provide capital and office space.
Also, other services such as business
development support, marketing, advice on
strategy and branding, etc.
Unlike accelerators there’s no fixed date for
graduation.

11. P2P Lending
Platforms
Lately, there’s been a surge in peer-to-peer
(P2P) lending platforms.
They provide loans at lower interest rates
than most market conditions, helping investors
and startups at the same time.
A few notable platforms include:
Funding Circle
Prosper Marketplace
Lending Club

12. Series A
Figure out or scale distribution
Scale geographically or across verticals
Create partnership, evolve newer business model
Depending upon the geography; anything
upwards of $2 million with a median of $3-$7
million
Established venture funds (Sequoia, A16Z,
Benchmark, Accel, Greylock, Battery, CRV, Matri,
etc.) and corporate venture capitalists
Syndicated angels/super-angels may invest

13. Series B
Hyperscale
Usually upwards of several million dollars
Usually follow-on funding from existing investors
plus newer players.
Some additional firms who specialize in later
stage deals such as IVP, GVVC, Meritech, DAG,
among others.

14. Series C and
Onwards
Go global
Acquire smaller players
Can range from tens to hundreds of millions
Can be driven by the folks mentioned for Series A
or B or:
Private equity firms
Hedge funds
The mezzanine or late stage arms of Goldman Sachs,
Morgan Stanley, and other investment banks
Big secondary market firms such as DST or Tiger

15. Venture
Capital 101
• M&A or IPO
Exit
• Series “C” and beyond
• Commercialization, expansion and acquisition
Later
Rounds
• Series “B”
• Product Development
• Collaborations and Customers
• Clear Intellectual Property Strategy
Second
Round
• Series “A”
• Feasibility stage
• First “institutional” round
First Round
• Ideation stage
• Small or No capital
Seed/Pre-Seed
Round

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