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Seeking angel capital dos and donts

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Increase likelihood of raising angel capital with primer on do's and don'ts

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Seeking angel capital dos and donts

  1. 1. Angel Investing Presented by Roger London American Security Challenge
  2. 2. Background $1B Serial Entrepreneur #6? Dept of Defense and Intelligence Community Tech Scout Dingman Angels, Baltimore Angels Startup America/NYSE, Wal-Mart, GE, Coca-Cola NOKIA Venture Capital Techstars mentor and partner
  3. 3. Main Content Page Layout • This text is a placeholder. • Here is the second level. • You may change this text • Here is the third level • Formatting is controlled by the slide master and the layout pages. • There is a third level • And even a fourth level Add a subtitle here An accent, click to edit the text inside.
  4. 4. Fundamentals?
  5. 5. 0 0.1 0.2 0.3 0.4 0.5 Ignore Customers Poor Product Not Right Team No Market Need 14% 17% 23% 42% Startup Failure Not Right Team Poor Product No Market Need Ignore Customers Top 4 Reasons Startups Fail
  6. 6. Red Flags 1. Market share based on % of total market 2. FF&F terms not angel friendly 3. Use of Proceeds pays salaries or debt 4. Send unsolicited plans 5. No competition 6. NDAs 7. Polishing the cannonball 8. Bury the headline 9. Relatives/friends on team 10. Muddy IP
  7. 7. Soooo, what should you do? 1. Clearly defined benefits and differentiation in scalable business 2. Get customers pilots/traction/involvement early* 3. Show exit possible 4. How are you going to make money! 5. Traunche milestones 6. Team examples of success 7. Valuation 8. Clear, concise and compelling- 6th grader * 9. Forget crowdfunding 10. Profitable, repeatable, sustainable, scalable
  8. 8. Startups Hurdles Race Theorem 1. Distance: How long is the race…100 meters or mile? Is start to exit in 5 years or 15? 2. Number of Hurdles: is this a 3 hurdle race or 10 hurdle race where hurdles include factors like raising capital, finding talent, raising capital, creating demand in new market, manufacturing, raising capital, distribution, etc. 3. Hurdle height: are these hurdles easily crossed? Need 100 customers or 1M to break even? 4. Purse: playing for pile of pennies or pot of gold?
  9. 9. Bonus: from Driven Forward 1. Dumb money 2. Kiss of death advisor 3. Misspent effort 4. King of the dung hill 5. Build to buzz ratio 6. Seem uncoachable
  10. 10. Bonus: from Driven Forward • Mark Cuban ‘s 12 Rules for Startups: • Sales cures all • Jeff Bezos: • ‘What’s not going to change in the next 10 years? • Heidi Roizen: • the art of negotiation is finding the maximal intersection of mutual need • Roger London • Investor decision making: Bus Theory • Roger London: • Pattern recognition
  11. 11. Roger London, President S3 Innovations AmericanSecurityChallenge.com | TechMATCHs3.com Email: Roger@AmericanSecurityChallenge.com Follow Us: Facebook | LinkedIn | YouTube

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