More Related Content
Similar to David Nault What it Really Takes to Close Your Next Round
David Nault What it Really Takes to Close Your Next Round
- 1. Series “A” Funding David Nault @venturebuilder david@iNovia.vc
- 2. Agenda 1. The Good 2. The BAD 3. The UGLY …of raising your next round.
- 3. Agenda v.2.0 1. The UGLY Series A crunch 2. The BAD New criteria for series A 3. The Good Good businesses get funded …of raising your next round…
- 4. Why is RAISING MONEY so F@#% HARD !
- 5. Increased number of startups $
- 6. 2012 400* 2011 280 2010 220 Canadian seed deals Seed = <$1.5M * esPmated
- 7. 20% will successfully raise series A
- 8. Data shows: Series A Crunch
- 9. For the opRmisRc….. There’s no CRUNCH It’s just easier to raise seed & harder to raise later rounds
- 10. Inside scoop on Venture Capital
- 11. 80% of returns from VC come from 5% of funds
- 12. VENTURE MATH 101 Fund Size $100M Life of fund 10 years Return promised to LPs 20% Return needed $300M Average ownership in companies 15% Aggregate Exits needed $2B It’s crazy hard to make $ in VC! See: StartupCFO’s blog
- 13. VCs need businesses that can be HUGE
- 14. “Not every business Is fundable at every moment in Rme” Don’t Blame the System David Crow’s blog
- 15. 2-‐ The BAD… 10M is the new 10 M users hXp://cdixon.org/2012/08/03/ten-‐million-‐ is-‐the-‐new-‐one-‐million/
- 16. Metrics ValidaRon Team Great business/ Model
- 17.
- 18. Show operaEonally you are metrics driven Know your #’s by heart !
- 19. Demonstrate growth of key metrics Time is your enemy
- 20. VCs love LARGEin magnitude 1000’s….Million…. 10’s of million !
- 21. Risk miEgaEon & solid business model
- 22. The GOOD ! GeUng a deal done
- 23. GREAT businesses get funded.
- 24. GeUng a Deal Done What VC’s look for? The 3 T’s -‐ Team, TracPon, Technology Familiar market – do your homework ! Sustainable business model Great co-‐investor syndicate
- 25. GeUng a Deal Done The 3 T’s -‐ Team: Strong domain knowledge Great track record Addressable holes in the team (if any) “Awesome” Team
- 26. GeUng a Deal Done The 3 T’s -‐ TracPon: TracPon shows there’s a market TracPon shows team can execute 3 forms of tracPon: -‐ Sales, audience, partners TracPon is validaPon
- 27. GeUng a Deal Done Tech/ CompePPve Advantage: • Why are you beXer ? • What do you have that they don’t? • Is there a barrier to entry?
- 28. GeUng a Deal Done VCs invest in familiar markets Do your homework Know the partner’s backgrounds Know all their investments Show there’s a fit ? Due diligence goes BOTH ways !
- 29. 3 things to take home 1. It’s F@#$ hard to raise money 2. Great businesses get funded 3. Team, tracPon, execuPon Good VCs are already tracking your progress
- 30. David Nault @venturebuilder david@inovia.vc