This document outlines sources of funding for startups, with a focus on crowdfunding. It discusses various types of funding sources like friends and family, angels investors, venture capital, grants, and loans. Each funding source has advantages and disadvantages. Crowdfunding is discussed in more detail in the second half of the presentation. The presentation encourages startups to focus on sales and getting their strategy right before pursuing funding. It also provides tips on pitching to different investors and understanding what each investor is looking for.

1. MICHAL GROMEK
PONTUS ENGSTRÖM
1320 ENTREPRENEURSHIP AND
OPPORTUNITY, 22TH OF JANUARY 2017
https://www.flickr.com/photos/jdhancock/
SOURCES OF FUNDING
FOR STARTUPS WITH FOCUS
ON CROWDFUNDING
ENTREPRENEURS
PERSPECTIVE

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POTENTIAL QUESTIONS:
I HAVE A BUSINESS IDEA, SO HOW
DO I RECEIVE FUNDING?
CAN I JUST UPLOAD MY BUSINESS
IDEA ONLINE?
HOW CAN THE STARTUP THAT I
WORK WITH RECEIVE FUNDING?
ROAD MAP FOR OUR 90 MIN TODAY:
DIFFERENT TYPES OF FUNDING SOURCES FOR
ENTREPRENEURS AND STARTUPS (FIRST 45) WITH A
FOCUS ON CROWDFUNDING (SECOND 45 MIN)
NO CANNED
SOLUTION :)

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OUR SESSIONS ARE TO SHORT
TO GO INTO DETAILS IN
DIFFERENT TYPES OF FUNDING,
PLEASE USE THE VIDEO LINKS
AT THE CORNER OF THE
PRESENTATION TO WIDEN
YOUR KNOWLEDGE.
FINE PRINT:
YOU DON'T KNOW YET IN WHICH SITUATION THE
STARTUP THAT YOU WILL CHOSE ACTUALLY IS.
POINTERS
TO THINK
AND EXPLORE

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STARTUP FINANCING CYCLE (MODEL)

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STARTUP FINANCING CYCLE (STAGES OF FUNDING)
PRE-SEED FUNDING
SEED FUNDING
SERIES A / SERIES B
SERIES C
FOR MORE INFORMATION WATCH OUR PRESENTATION FROM LAST WEEK - LINK

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STARTUP FINANCING CYCLE (MORE PLAYERS)
REWARD BASED CROWDFUNDING
INSTITUTIONAL FUNDING
HEDGE FUNDS
PUBLIC FUNDING

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STARTUP FINANCING CYCLE (WHAT DO YOU PITCH)
TEAM
VISION
MISSION
TRIGGER EMOTIONS
REPUTATION
INSTITUTIONAL FUNDING
HEDGE FUNDS
PUBLIC FUNDING

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STARTUP FINANCING CYCLE (WHAT DO YOU PITCH)
TRACK RECORD
PATENT APPLICATION
TRACTION
RETENTION
DATA, DATA, DATA
INSTITUTIONAL FUNDING
HEDGE FUNDS
PUBLIC FUNDING

9. FRIENDS FAMILLY FOOLS
THEY JUST FUNDING, DON'T HOPE FOR STRATEGY TIPS
CAN BE A NIGHTMARE TO DEAL WITH THEM - SO FAR LITTLE
BUSINESS S EXPERIENCE (IT WAS FOR ME)
IN CASE BUSINESS FAILS THEY CAN TAKE IT PERSONALLY
DOWNSIDES
COMMUNICATE RISK CLEARLY
HAVE A SHAREHOLDER AGREEMENT
DON'T ASK FOR MONEY THAT THEY CAN NEED
TIPS:
UPSIGHTS
USE YOUR REPUTATION
DON'T CHECK CREDIBILITY
LESS BURACRATIC

10. BUSINESS ANGELS
BUSINESS ANGEL CAN BE STRONG INDIVIDUALS, AND SOME GOT
WEALTHY BECAUSE OF LUCK AND NOT NECESSARY EXPERIENCE.
SOME BUSINESS ANGELS LIKE TO HAVE MORE CONTROL THAN
WHAT FOUNDER ARE WILLING TO GIVE.
DOWNSIDES
SPEAK TO FOUNDERS OF COMPANIES WHERE BA'S
HAS INVESTED INTO. REVIEW THE BA'S
PERFORMANCE IN YOUR SECTOR
TIPS:
UPSIGHTS
INVEST ON EARLY STAGE, LIKE TO TAKE RISK
CAN OPEN DOORS WITH THEIR INFORMAL NETWORK
MONEY IS NOT A LOAN (USUALLY)
BUSINESSES OPERATE LONGER AND HAVE A HIGHER RATE OF RETURN
LINK TO HOW TO RAISE MONEY FROM ANGEL INVESTORS (PLEASE SKIP FIRST 12 MINUTES)

11. VENTURE CAPITAL
LONG DUE DILLENGENCE PROCESS
TENDENCY 95% DISCOUNTED VALUATION METHOD
STRONG PERSONALITIES
SINCE 2009 > USUALLY LATE STAGE FINANCE (SERIES A+)
DOWNSIDES
UNDERSTAND HOW VC WORKS (PRESENTATION BELOW)
REVIEW WHEN THEY HAVE BEEN RAISING MONEY
AND IS THERE OWN PERFORMANCE
TIPS:
UPSIGHTS
MAYBE SMART MONEY
STRONG NETWORK
LONGTERM PARTNER 4.2% OF VC
EMPLOYEES ARE
FEMALE*
*SOURCE: http://fortune.com/2015/01/30/women-are-not-making-progress-in-male-
dominated-vc-world-data-shows/ (ACCESSED 20th OF JANUARY)
LINK TO HARVARD INNOVATION LAB ON HOW VC MAKE DECISION

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HOW DOES VENTURE CAPITAL
MAKE MONEY?
60 SECOND CHALLANGE :)

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GET A PIECE OF
PAPER READY
AND A PEN
OR THE ELECTRONIC VERSION OF IT :)

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60 SECOND BONUS CHALLANGE :)
WHAT ARE MANAGEMENT FEES?
HOW HIGH ARE PERFORMANCE
FEES?

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60 SECOND BONUS CHALLANGE :)
2% MANAGEMENT FEE
20% PERFORMANCE FEE

17. OTHER FORMS:
CREDIT CARS, OVERDRAFTS = EXPENSIVE
INFORMAL DEBT
EQUITY INVESTMENT (ALMI INVEST)
DEBT AT AROUND 6%-10% (ALMI)
COLLATERAL GUARANTEE
EUROPEAN FUNDING (FRAMEWORK7)
VINNOVA (GRANTS
GRANTS GOVERNMENT
CAN BE VERY TIME-CONSUMING ADMINISTRATION
MIN. SIX MONTHS
LINK TO THE INITIATIVE OF THE EU COMMICION ON STARTUPS

18. TO MUCH OF THE FUNDING
DESCREASES THE SENSE OF
URGENCY AND FOCUS ON SALES
(EXAMPLE: OUR FIRST GUEST
SPEAKER)
PLANNING FOR FUNDING
IS ONLY AS GOOD AS THE QUALITY OF YOUR BUSINESS FORECAST
TO SMALL FUNDING ROUND
(PERMANENT FOCUS ON
FUNDING - IT TOOK ME
AROUND 70% OF MY TIME TO
FOCUS ON FINANCE)

19. WHAT IS REALLY NEEDED AND WHAT IS A LUXURY SCENARIO?
WHAT IS REALLY NEEDED
HOW WILL THE FUNDING REALLY BE USED?
WHAT SHOULD THIS BE USED FOR (BACKGROUND BIAS)
BUSINESS MAJORS - INTERNATIONALISATION
MARKETING - ONLINE OFFLINE MARKETING
PUBLIC RELATIONS - BIASED
ENGINEERING BACKGROUND - PRODUCT, PRODUCT, PRODUCT
YOU CAN PLAN AND CONTROL EXPENSES BY NOT REVENUE
PLEASE FOCUS ON SALES (!)

20. 2. CONSERVE YOUR EQUITY THIS IS THE ONLY ASSET YOU HAVE.
WHAT SHOULD YOUR STARTUPS FOCUS ON
GET YOUR STRATEGY RIGHT FIRST.
FUNDING DETERMINE MIGHT DETERMINE YOUR STRATEGY
INVESTORS WILL BE CONCERNED WITH:
MARKET RISK
PRODUCT RISK
FINANCIAL RISK
WHAT IS HAPPENING IN THE FIELD
OF BUSINESS FIELD OF YOUR STARTUP?
MONEY IS THE SOLUTION, WHAT IS THE PROBLEM.
NEWS.GOOGLE.COM
HTTPS://TWEETDECK.TWITTER.COM/#
TRENDS.GOOGLE.COM

21. FIRST JOURNEY OF AIRBNB

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NEXT STEPS
DIFFERENT INVESTORS DIFFERENT MESSAGE
THERE IS NO "ONE TYPE OF CROWDFUNDING"
PLEASE WATCH THE VIDEOS, THAT YOU CAN ACCESS
AS HYPERLINKS IN THIS PRESENTATION BEFORE
YOUR FIRST MEETING WITH YOUR PARTNER STARTUP
EXAMPLES OF PITCHES

23. 1320 ENTREPRENEURSHIP AND
OPPORTUNITY, 20TH OF JANUARY 2017
Picture:https://flic.kr/p/drV3LQ
SLIDES ARE ONLINE ON:
SLIDESHARE.COM/
MICHALGROMEK (4:30
PM)
CC LICENSE FOR DISTRIBUTION

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BREAK
UNTIL 15:15