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So, You Think You’re Ready To
Fundraise?
Project Entrepreneur
Angela Lee
November 14, 2015
 37 Angels LLC – All Rights Reserved
37 Angels wants to close that gap
13% of angel investors are women
Our Story
 37 Angels LLC – All Rights Reserved
37 Angels yearly snapshot
Train 30-40
Angels
Fund 10-12
companies
Evaluate
2500 star...
 37 Angels LLC – All Rights Reserved
My path
Product Management
Business School
Consulting
Academia
Undergrad
 37 Angels LLC – All Rights Reserved
Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching ...
 37 Angels LLC – All Rights Reserved
Sources of capital
Founders
Company
Revenue
Friends &
Family
VCs &
Angels
Other
• Al...
 37 Angels LLC – All Rights Reserved
Questions to ask yourself / co-founders
7
What does success mean to me?
Can these in...
 37 Angels LLC – All Rights Reserved
What to really focus on if bootstrapping
8
Cash flow management
 37 Angels LLC – All Rights Reserved
Statement of cash flows
Month 1 … Month 18
Starting cash
Cash in
Cash out
Ending cash
 37 Angels LLC – All Rights Reserved
What to really focus on if bootstrapping
10
Scope management
Cash flow management
 37 Angels LLC – All Rights Reserved
 37 Angels LLC – All Rights Reserved
What to really focus on if bootstrapping
12
Scope management
Failing fast / cheaply
...
 37 Angels LLC – All Rights Reserved
Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching ...
 37 Angels LLC – All Rights Reserved
The 10 pitch slides you need
14
6. Business model
7. Customer acquisition
8. Tractio...
 37 Angels LLC – All Rights Reserved
Why your team is the right team
Name, Title
• Accomplishments
• Relevant previous
ro...
 37 Angels LLC – All Rights Reserved
What is The Market Opportunity?
Differentiate between
• TAM: Total Available Market
...
 37 Angels LLC – All Rights Reserved
Business Model
• How you will make money
• How you will acquire customers
17
 37 Angels LLC – All Rights Reserved
What we don’t like to hear
18
We only have to
capture 1% of the
market!
We’ve done n...
 37 Angels LLC – All Rights Reserved
B to C example B to B example
How are you acquiring customers?
19
Direct email campa...
 37 Angels LLC – All Rights Reserved
Traction to date
What metrics matter to your business?
20
$Y RevenueX Users Z Transa...
 37 Angels LLC – All Rights Reserved
Why your company is special
21
Dimension 1
Dimension2
Feature Feature Feature Feature
 37 Angels LLC – All Rights Reserved
Investing Details: Call to Action!
22
• Size of your round
• Terms of your round
• W...
 37 Angels LLC – All Rights Reserved
Investing Details
23
$3M valuation
Raising $500K, $300K committed
Funds used for:
• ...
 37 Angels LLC – All Rights Reserved
Pitching best practices
24
• Keep it simple
• Test your pitch
• Pitch the company, n...
 37 Angels LLC – All Rights Reserved
Questions?
37angels.com
@37angelsNY
@angelawlee
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Fundraising Readiness | So You Think You're Ready to Fundraise?

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This presentation was originally presented by serial entrepreneur and CEO/Founder of 37 Angels, Angela Lee, at the 2015 Project Entrepreneur Summit in Washington D.C. She asked workshop attendees two crucial questions: 1) How do you know when you are ready to boot strap? 2) How do you know when you are ready to fundraise? Participants will gain an understanding of what next steps are right for their business, and how to make smart funding choices based on what stage they are in.

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Fundraising Readiness | So You Think You're Ready to Fundraise?

  1. 1. So, You Think You’re Ready To Fundraise? Project Entrepreneur Angela Lee November 14, 2015
  2. 2.  37 Angels LLC – All Rights Reserved 37 Angels wants to close that gap 13% of angel investors are women Our Story
  3. 3.  37 Angels LLC – All Rights Reserved 37 Angels yearly snapshot Train 30-40 Angels Fund 10-12 companies Evaluate 2500 startups
  4. 4.  37 Angels LLC – All Rights Reserved My path Product Management Business School Consulting Academia Undergrad
  5. 5.  37 Angels LLC – All Rights Reserved Topics to discuss Fundraise or bootstrap? Staying sane while bootstrapping Pitching 101
  6. 6.  37 Angels LLC – All Rights Reserved Sources of capital Founders Company Revenue Friends & Family VCs & Angels Other • Already investing “sweat equity” • How long before profitable / break even? • Most expensive capital to raise • Gives away equity / control • Loans, grants, business plan competitions, strategic investors 6
  7. 7.  37 Angels LLC – All Rights Reserved Questions to ask yourself / co-founders 7 What does success mean to me? Can these investors add value? What is my current situation?
  8. 8.  37 Angels LLC – All Rights Reserved What to really focus on if bootstrapping 8 Cash flow management
  9. 9.  37 Angels LLC – All Rights Reserved Statement of cash flows Month 1 … Month 18 Starting cash Cash in Cash out Ending cash
  10. 10.  37 Angels LLC – All Rights Reserved What to really focus on if bootstrapping 10 Scope management Cash flow management
  11. 11.  37 Angels LLC – All Rights Reserved
  12. 12.  37 Angels LLC – All Rights Reserved What to really focus on if bootstrapping 12 Scope management Failing fast / cheaply Cash flow management Don’t be too cheap
  13. 13.  37 Angels LLC – All Rights Reserved Topics to discuss Fundraise or bootstrap? Staying sane while bootstrapping Pitching 101
  14. 14.  37 Angels LLC – All Rights Reserved The 10 pitch slides you need 14 6. Business model 7. Customer acquisition 8. Traction 9. Competition 10.Deal terms 1. Elevator pitch 2. Problem 3. Solution 4. Team 5. Market size  37 Angels LLC – All Rights Reserved
  15. 15.  37 Angels LLC – All Rights Reserved Why your team is the right team Name, Title • Accomplishments • Relevant previous roles (logos ok) 15 Name, Title • Accomplishments • Relevant previous roles (logos ok) Next key hire
  16. 16.  37 Angels LLC – All Rights Reserved What is The Market Opportunity? Differentiate between • TAM: Total Available Market • SAM: Serviceable Addressable Market • SOM: Serviceable Obtainable Market 16
  17. 17.  37 Angels LLC – All Rights Reserved Business Model • How you will make money • How you will acquire customers 17
  18. 18.  37 Angels LLC – All Rights Reserved What we don’t like to hear 18 We only have to capture 1% of the market! We’ve done no marketing!
  19. 19.  37 Angels LLC – All Rights Reserved B to C example B to B example How are you acquiring customers? 19 Direct email campaign • Cost to send X emails • # of opens • # of clicks • # of sign-ups • # that are engaged in x days • # that pay • # that are paying in x days • Cost to acquire customer? • Value from each customer? • Best way to attract/engage customers/ • Salesperson salary = X • # cold calls a week • # of demos a week • # of mtgs with decision maker • # sales a month • Timeline to make a sale • # retained in year 2 • Cost to acquire client? • Value from each client? • Best way to attract/engage customers/ • Understanding of decision maker
  20. 20.  37 Angels LLC – All Rights Reserved Traction to date What metrics matter to your business? 20 $Y RevenueX Users Z Transactions
  21. 21.  37 Angels LLC – All Rights Reserved Why your company is special 21 Dimension 1 Dimension2 Feature Feature Feature Feature
  22. 22.  37 Angels LLC – All Rights Reserved Investing Details: Call to Action! 22 • Size of your round • Terms of your round • What you’ve raised so far • What money will be used for • Background of investors (if relevant)
  23. 23.  37 Angels LLC – All Rights Reserved Investing Details 23 $3M valuation Raising $500K, $300K committed Funds used for: • Product development • Marketing
  24. 24.  37 Angels LLC – All Rights Reserved Pitching best practices 24 • Keep it simple • Test your pitch • Pitch the company, not the product
  25. 25.  37 Angels LLC – All Rights Reserved Questions? 37angels.com @37angelsNY @angelawlee

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