FUNDRAISING: DEALING WITH “NO”!Benjamin Joffe!June 2013!PLUSEIGHTSTAR
Benjamin Joffe!• 13 years in Asia!• Founder, +8*!• Co-Founder, Cmune!• Mentor, 500 Startups,Chinaccelerator, etc.!• Angel investor!• Speaker, Columnist!
Investment Experience • 10 investments ($5k to $50k) – 10 founders convinced me to give them money – 100’s did not • Fundraising – Cmune Gaming Atomico, DCM – Elysium Space Space Burials! Fundraising now
STARTUPS ARE CONFUSED A startup is a company confused about: -‐ What its product is -‐ Who its customers are -‐ How to make money. When confusion stops, it becomes a real business. Dave McClure 500 Startups This plus scale!
BEST FOOT FORWARD • 1 clear phrase about you (problem you solve) • The MOST SOLID THING YOU HAVE – Team from Google? – Sold a startup? – Crazy high retenion? – You ﬁgured out viral? – Users pay lots? – Interviewed 100 clients?
INVESTORS ARE AFRAID • MISSING OUT (“FOMO”) • LOOKING LIKE FOOLS • FEELING BAD (your reacion) • LOSING REPUTATION PASSION, COMMITMENT, EXPERIENCE MAKE INVESTORS FEEL YOU WILL TRY HONESTLY
CONSEQUENCES Ask for money, get advice Ask for advice, get money GET TO KNOW PEOPLE BEFORE ASKING FOR CASH (OR A KISS)
SEDUCTION MECHANICS Social proof Conﬁdence Not needy LOOKING NEEDY IS UNATTRACTIVE
EXAMPLE: ME • 10 INVESTMENTS BUT… • 2 TIMES LEAD – Both from friends (1 year+) – First one (5 years ago) I knew nothing – Second one (now) I am helping fundraise A FIRST INVESTOR THAT OTHERS RESPECT HELPS A LOT
SUMMARY 1. ALWAYS BE PITCHING 2. BEST FOOT FORWARD 3. REDUCE RED FLAGS 4. UNDERSTAND MOTIVATIONS 5. ASK FOR ADVICE 6. FOCUS ON THOSE WHO GET IT