Are you ready to raise capital for your startup? Do you have a plan? Learn what you need to do to attract capital from VC's, loan providers, and other investors. Rob Belcher of Lighter Capital and Sirk Roh of Early Growth Financial Services walk through the fundraising essentials and pitfalls you need to know about. This webinar focuses on: -- Fundraising and business planning strategy -- What's most important for different funding options - from venture capital through to revenue-based financing -- Preparing the necessary materials and documentation to successfully raise capital This webinar is designed to give you the best chance of meeting your capital raising goals for your next stage of growth.

1. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
An Insider’s Guide to
Raising Capital
What Investors Look For
August 7th, 2014
Sirk Roh, COO – Early Growth Financial Services
Rob Belcher, Vice President – Lighter Capital

2. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Lighter Capital
› Based in Seattle, WA
› Serial entrepreneurs, technologists,
angels and ex-VCs
› Tech-enabled specialty finance
company
› Direct business lender
› Not a bank, not aVC
› Employs an innovative revenue-
based finance model
› Uses technology to speed up and
simplify loan underwriting and
servicing processes
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Rob Belcher
Vice President
Lighter Capital

3. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Sirk Roh
COO
Early Growth
Financial Services
Early Growth Financial Services
› Outsourced financial services firm providing
finance, accounting, valuation, and tax
support to small to mid-sized companies at
all stages of the development process
› Services include: transactional accounting,
strategic finance, CFO services, valuations,
and tax services.
› Clients includeTechShop, Klout, Indiegogo,
Zendesk, and 400+ small to mid-sized clients
nationwide
› Operations in SiliconValley, San Francisco,
Los Angeles, Seattle, LasVegas,Austin,
Boulder, Chicago, and NewYork City
› #5 SiliconValley Business Journal’s Fastest
Growing Private Company Award 2013
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4. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Today’s agenda
Reflection:
Analyzing the Business
Projection:
Business / Fundraising Game Plan
Preparation:
Pulling It All Together
Documentation:
Required Documents and Information
Q&A
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5. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Reflection: Analyzing the Business
Essential questions for analyzing your business model and economics
FINANCIALS
› What stage is the company? Pre-revenue? Cash Flow Positive?
› What is revenue / cash / pricing model?
› How much / what kind of financing have you taken in to-date?
CUSTOMERS
› Who is target customer?
› How many customers do you have? How many others exist?
› Customer acquisition cost, LTV, renewal rate, attrition rate?
SALES & MARKET
› What percent of revenue is from your largest customer? Largest 5? What does your
sales pipeline look like?
› How long is sales cycle?
› How big and where is your target market? How do you reach them?
TEAM
› What is make-up of current team?
› Where, if any, are gaps?
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6. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Projection:
Business / Fundraising Game Plan
Whenyou’rereadytoraisefunds,clarityiskey
› How much money do you need to raise?
› What’s that money going to be used for?
› At what cost and with what terms and conditions?
› What type of capital is the best fit for your company,
and why?
› Where do you find the type of financing you need?
› Milestone financing
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7. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Projection: Business / Fundraising Game Plan
A snapshot of funding options by stage
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EstablishedIdeation Launch &
Traction
Growth &
Scale
Breakout
Bootstrap/Self
Family & Friends
Angels and Incubators
Revenue-Based Financing
VC (less pre-product/revenue than in the past, more at later stages)
Banks (w/o VC investor)
Strategic Investors
Note: These are tendencies, NOT hard and fast rules. Many financings happen outside these bands!
$MMs$0 $0-$1M $1M-$5M $5M+

8. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Projection: Business / Fundraising Game Plan
Funding Options: How Do They Compare?
Bank / Debt
Revenue-Based
Finance
Venture
Capital
Guarantees &
Controls
Financial Covenants
Sometimes Personal
Guarantees
No Financial Covenants
No Personal Guarantees
Partner in the Business
(Board Seat, voting
shareholder)
Added Value Low / None Medium High
Dilution None / Low
Low: Small Upside
Participation
High
Payment
Flexibility
Low: Fixed Payments Medium: Variable Payments High: No Payments
Speed 4-8 months 4 weeks
Highly variable. Typical
3-6 months focused
effort
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9. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Projection: Business / Fundraising Game Plan
RevenueLoan: how does it work?
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1 2 3 4 5 6 7 8 9 10 11 12 13 14
Period
Loan payments are based on a percent of
the company’s revenue.
Company revenue
Loan payment

10. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Preparation: Pulling It All Together
What you need to impress potential investors
› Elevator Pitch
› Executive summary
› Financial model / budget
› Product demo
› Pitch deck
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11. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Preparation: Pulling It All Together
Key slides in your pitch deck
Include elements that are most relevant for your company
› Who are you?
› Venture concept / problem to be solved
› Market opportunity
› Market strategy
› Competitive advantages and risks
› Technology
› Manufacturing/Production
› Management team
› Financials
› Funding requirements
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12. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Preparation: Pulling It All Together
Business Plan
› Current business plan & financial projections
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Top-Down Projection
1. Start with market size
2. Identify particular segment
3. Extrapolate to calculate total
potential revenue
Bottom-Up Projection
1. Project revenue growth over
next 1-3 years
2. Calculate spending necessary to
achieve revenue/development
3. Headcount/milestone funding
1
2
3 1
2
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13. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Preparation: Pulling It All Together
The Fundraising Process
How to tackle fundraising as a business development exercise
› Business development process
› Determine your funding round
› Build your value proposition
› Identify the right investors given your stage, size,
industry, and focus
› Target key players
› Rely on your ecosystem
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Recommended reading:
Art of Start, Insider's Guide to Silicon Valley, Early Exits

14. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Documentation: Required Documents
Necessary documentation and information for due diligence
Corporate Records
Security Issuances
Material Agreements
Intellectual Property
Disputes & Litigation
Other Information
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15. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Corporate records and charter documents
› Certificate of Incorporation
› Articles of Incorporation (and amendments)
› Certificates of Designations, Rights, etc.
› Bylaws
› Minutes of directors' and shareholders' meetings
› Written consents of directors and shareholders
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Documentation: Required Documents

16. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Security issuances
› Company shareholders and option holders (showing
vesting & security exemptions)
› Outstanding options, warrants, rights
› Registration rights for company's securities
› All voting trust instruments, buy-sell agreements, voting
proxies or other shareholder agreements
› All permits and filings regarding securities issued by
company
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Documentation: Required Documents

17. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Material agreements
› Obligations / payments in excess of $10,000
› Personal property leases
› Company liabilities
› Property / asset related documents
› Loan or advance documents
› Employment agreements
› Insurance policies
› Employee benefit plans
› Any judgment by which company is bound
› Form of Proprietary Information and Invention
Agreements
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Documentation: Required Documents

18. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Intellectual property
› Foreign and domestic patents and patent applications
› Trademarks, trade names, service marks, domain names
or copyrights Proprietary processes
› Licensing agreements (to and from)
› Third-party correspondence regarding potential
infringement of IP rights
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Documentation: Required Documents

19. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Disputes and litigation
› Pending action, suit, proceeding, investigation
› Allegations of company's infringement of proprietary rights
of others
› Labor agreements or actions
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Documentation: Required Documents

20. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Other essential documentation
› Securities or ownership interests in other companies
› Certificates of qualification from all states or foreign
countries in which company is qualified to do business
› All licenses, permits or government authorization
› Company’s bank accounts, lines of credit, etc.
› Current or past officers, directors, or key employees who
own direct beneficial interest in any competitor
› Powers of attorney executed by company
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Documentation: Required Documents

21. EARLY GROWTH FINANCIAL SERVICES LIGHTER CAPITAL © COPYRIGHT 2014
Learn More:
earlygrowthfinancialservices.com
www.lightercapital.com
Apply / Contact:
earlygrowthfinancialservices.com/contact-us/
secure.lightercapital.com
Questions:
sroh@earlygrowthfinancialservices.com
rbelcher@lightercapital.com
Q&A and next steps
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@LighterCapital @EarlyGrowthFS