Raising Capital for Your Startup - Lean Entrepreneurship Carnegie Mellon

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Many very successful businesses have been and will be built without raising venture capital. However, for certain high growth businesses one or multiple rounds of growth capital are necessary

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Raising Capital for Your Startup - Lean Entrepreneurship Carnegie Mellon

  1. 1. Raising Capital for Your Startup Sean Ammirati
 Partner, BirchmereVentures Adjunct Professor, Carnegie Mellon University #CMULean
  2. 2. Only a few companies should RaiseVC $ 
 (but that is our focus for next 45 minutes) #CMULean
  3. 3. When should approach VC re:investing? Revenue EBITDA #CMULean
  4. 4. A VC’s Job: ! Step 1: Find the best companies Step 2: Invest on rational terms ! Step 3: Help them grow till exiting for a much higher valuation #CMULean
  5. 5. 1 Investment: 100 - 150 Pitches #CMULean
  6. 6. ! ! ! What makes a great investment? The Relevant Question ... #CMULean
  7. 7. 1 Fantastic Team 2 Large Market 3 True Differentiation 4 MarketValidation 5 Fit with the Fund #CMULean
  8. 8. Rational Terms • Amount • Preferences • Control #CMULean
  9. 9. Quick Summary • Liquidation Preference • Board Seat • Budget Approval • Information Rights • Pro-Rata Rights Pre-Money Valuation Investment Post-Money Valuation #CMULean
  10. 10. How do you determine valuation? • Team,Traction, Stage & Sector • Exit Expectations (next slide) #CMULean
  11. 11. Exit Expectations At early stage 10x Success Return Capital Write Off Portfolio 3x 
 (really relative to otherVCs same vintage) #CMULean
  12. 12. #CMULean
  13. 13. For Next Week ... ! #CMULean
  14. 14. ~7 Slide / 15 minute “Pitch” 1.Problem & Solution (summarize AE 1) 2.Business model (summarize AE 2) 3.Market Opportunity (summarize AE 3) 4.Next MAP you want to validate 5.Mockup or Specification for that MAP 6.Projections and milestones (beyond next MAP) 7.Budget #CMULean

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