精彩的分享關於新創公司在跟VC談判討論時的最新鮮實戰經驗.

1. about
FUNDING
Sharing fromYoyo
2015.1 @ SSX

2. Why Funding?
• Share Risk
• Get More Cash/Fuel/Bullet
• Get Market Feedback (from Investors)
• Build Alliance/Partnership
• Prepare for IPO

3. How much you need?
• More fund, safer but dilute more of your share!
• More fund, more difficult to grow EPS!
• More fund, less control power of the TEAM!
• Burn-rate of 1.5~2 years, in WORST case!
• Enough for you to make at least ONE PIVOT!
• So, it’s absolutely NOT AS MUCH AS YOU CAN
GET… but sometimes you don’t have choice
but to get all!

4. Where to Get Funding?
• F&F (Family, Friends, Fools…)
• Angel (Personal, Angel Fund…)
• VC
- Investment VC
- Corporate VC
- Government Fund (Matching Fund)
• Corporate

5. When to start Funding?
• At least 6 MONTHs BEFORE
you burn out all CASH… and midnight oil…
• Before your business kick-off
• In fact, if you are running a business,
EVERYDAYcan be funding day!

6. About VC
• Q : Which industry are they preferred?
• Q : Which stage are they preferred?
• Q : Which model (D/F) are they preferred?
• Q : Which relative case do they invest?
• Q : How much do they use to invest?
• Q : How long the decision process?
Init. contact  DD  IC  Board  Pay-in
Normal cycle can be 2-6 months

7. AO
• Identify GUARD in VC
G – Gatekeeper
U – User
A – Advisor
R – Recommender
D – Decision Maker
• AO – GU, partner…
• VP – AR, brother/sister…
• GM/President – D, parents…

8. BP/Pitch (1)
• Say again and again and again and again …
• Modify “each time”…
- You will learn “something” from each
presentation/interaction
- Your BP/Pitch has to be tailor-made for
different audience
- The most important, you have to “speak the
language your audience can understand”

9. BP/Pitch (2)
• 3 formats
- Elevator Pitch : few words in 1 mins
- Brief BP : for initial contact with VCs
- Completed BP : for DD
• If possible, ask VC to provide you their format,
then prepare it for them… AO will be
appreciated your effort and you can also learn
how do they evaluate your plan

10. How to find VC?
• Start-Up Competition/Contest Event
• Club (TVC) / Incubator / Accelerator
• Personal Connection / Matchmaker
• Café shop?? Well, well, wait…
• VC is a small POOL in Taiwan, so once you can
get one, you can even get ALL!

11. How to find Mr. RIGHT (VC)?
• Date at least 2 times with AO!
• Go their office to meet VP or GM at the 3rd
time… you are going to meet their parents, so
be prepared! Your AO is your best partner to
help you…
• If you are lucky to be introduced to
VP/GM/Chairman directly at the first time and
he/she likes your idea, BINGO!

12. Others you need to know…
• Hit rate of VC dating is around 10%... So don’t
worry that 90% VCs rejected you at last!
• Like dating, if you are hunger for “getting
marriage”, you might scare away them… in the
other hand, if you are FREE to go anyway, and
you are real valuable, they will pursue you!
• Find not only Mr. RIGHT, you have to identify
“lead investor” ASAP!

13. Who’s Lead Investor?
• Lead Investor is the one who :
- invests the most part or biggest part
- the first one to offer you the “term sheet”
- others are willing to follow
- helps to coordinate the funding process
- offers the investment agreement

14. About D/F company design
• Domestic company
Pros : government matching fund, better to IPO in
Taiwan stock market, easier to set up, less
accounting/legal fee…
Cons : less technical share (free share)
• Foreign company
Pros : bigger technical share (free share), flexible
term sheet, flexible stock option…
Cons : higher acc./legal fee, no gov matching fund,
most domestic VCs are not preferred

15. About Term Sheet
• Valuation/Free Share/Share price
• Board Seats
• Options
• Funding amount
• D-day of pay-in

16. About Technical Share in TW
事項
/
交易
發起設立 現金增資(溢價發行)
資本公積
轉增資配股
面額調整
10元
每股
價格
2 10 2 10
項次
股東
姓名
認購
股數
認購
金額
認購
股數
認購
金額
增資後
持股數
持股
比例
增資
股數
增資後
持股數
持股
比例
增資後
持股數
持股
比例
1
現金
投資人
N/A 4,000 40,000 4,000 80%12,800 16,800 80% 3,360 80%
2
團隊
現金
投資
1,000 2,000 0 0 1,000 20% 3,200 4,200 20% 840 20%

17. The LAST
• Remember, it’s a 6 MONTHS’ MARATHON, not
100M RACING!
• There are UPs and DOWNs during the period,
be prepared with your strong heart, cool brain
and clear mind!
• BAD thing is NOT BAD, GOOD thing is NOT
GOOD, everything is POSSIBLE!
• It’s NOT OVER until the FAT LADY SINGS!.
• Need matchmaker? Come to me.

18. Angel + Agent = Angent
• Silicon Valley’s Trend : Super
Angel/Institutionalized Angel
• Agent : Create Value for Super Star
- They know what your value is
- They know how to present your value
- They know where to deal your value
- The most important, they take care
everything to let you focus on your value
• SSX  Angent

19. More about Angent
• Be Funding Agent (CFO)
• Be HR Agent (CHRO)
• Be Strategic Partner Agent (CSO)
• Be Angel*
• Quit after A-round is done, or after official
CFO is hired…
• Return in Angel Investment or Free Share

20. Q & A(ngent)