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The Fundable Startup | Fred M. Haney | Lunch & Learn
This document discusses strategies for attracting capital to startups. It provides examples of successful startups that bootstrapped initially before attracting funding. The key points are: - Startups should bootstrap as far as possible using their own resources and equity to recruit team members before seeking outside capital. - Creating an initial product and getting some customers provides proof of concept that can help attract management and funding to expand. - Examples are given of startups that developed prototypes, gained interest from potential customers, and then were able to attract angel or VC funding to grow further. - The document emphasizes that startups need to create an attractive investment opportunity in order to "let investors come to them" for funding
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The Fundable Startup | Fred M. Haney | Lunch & Learn
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- 2. Defined Disruptive: RADICALLY CHANGES anindustry or business strategy, especially by creating a new market & disrupting an existing one. 2 High technology: technology involving the production or use of advanced or sophisticated devices (from tech to healthcare) 1 2
- 3. Where Are You? •Managed a startup? • Raised capital in the past? • Created a company that made money for investors? • Built a management team? 3 Have You? Are You? • Managing a startup? • Raising capital? • Creating a company? • Building a management team?
- 4. What You WillLearn Today How investors make decisions. Strategies for attracting capital to your startup. Who is the best leader for a startup and why? How careers evolve. 4 1 2 3 4
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- 9. IC Sensors Faraday Electronics Microlinear FRS,Inc. Computer Aided Design Silicon Power Corp. Protype, Inc. Adaptive Solutions Read-Rite 9 Natural Speech Recognition (Speech Systems, Inc.)
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- 11. Helping Startups 11 Tech Coast Angels MondayClub Venture Management Company
- 12. The Karma CareerPath Enjoying Learning Advancing 12
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- 14. 14 My Doggie Says… Messagesfrom Jamie
- 15. Perspectives Venture Capital Angel InvestorCorporatePlanning Boards of Directors Mentor Monday Club Startup Co-Founder 15
- 16. What Problem Is TheFundable Startup Solving? IMPROVING EVERY STARTUP’S CHANCE OF RAISING CAPITAL 16
- 17. Why Do SoMany Startups Fail? 17
- 18. Startup Capital HasBecome More Difficult to Access 1980s 2010s Top VC $ Top VC $ Black Monday Dot-Com Bubble 18
- 19. – Steve JobsLaw “Founders make the best leaders.” 19
- 20. The Fundable Realities CareerDiscontinuity Seasoned Competition Choices 20
- 21. What An InvestorHears… We have no competition We don’t know how to assess competition We only need 1% of a huge market to be successful We don’t know how to segment our market Our forecast is very conservative We don’t understand the importance of obtaining strong market share Our product is better than anything else out there We don’t really know how to measure “better” and we can’t be sure how long our competitive advantage will survive Our team has extensive management experience We can’t point to a successful company that our management team built We plan to go public in 3 years We don’t realize how unpredictable the opportunity to public can be Any forecast we come up with will be wrong We don’t understand how important it is to have a plan 21
- 22. CEO Skills Traditional ExecutiveSkills • Strategic Planning • Corporate Planning • Competitive Analysis • Hiring and Firing • Supervising • Team Building • Complex Problem Solving • Working with a Board of Directors • Working with Lawyers • Financial Analysis and Valuation • Negotiating Startup Company-Building Skills • Forming a Corporation • Hiring a Founding Team • Allocating Founder Shares • Writing the First Business Plan • Finding Professional Resources • Providing Leadership with no Capital • Understanding Deal Structures • Raising Capital 22
- 23. Climbing the CorporateLadder • Chairman • CEO • VP Marketing/Sales • VP National Operations • Acquisitions or Division G.M. • Branch Manager • Sales Manager • Sales/support Dr. Webb Castor Van Honeycutt 23
- 24. What Does itMean to “Attract” Capital? Investors are looking for good investment opportunities So create one and let them come to you!
- 25. What’s The AnswerFor Startups? Bootstrap as far as possible Use equity to recruit a team Create a product Get some customers Get some positive feedback Expand the team Attract management and money 25
- 26. Taking Dreams to Market DRCComputer: Steve Casselman’s Dream—Most powerful gene sequencing computer in the world NovaDigm Therapeutics: Dr. Jack Edwards’ Dream—First fungal vaccine to be tested in a human 26
- 27. LiveSafe, Inc. • Usestock to recruit developers and PR • Develop platform • Beta client (U. of Virginia?) • National Publicity • Business plan • Angel Funding and CEO • More angel funding and $5M from IAC • $5M from Fred Smith (FedEx Founder) 27
- 28. Parcel Pending Storage Lockersfor Parcels Delivered to Large Living Complexes • Friends and Family $ • Equity Deal with Software Developer • Lori Torres • Domain Knowledge • Operational Management • Create Prototype Locker • Interest from Irvine Company • Monday Club • Tech Coast Angels • UDR Operating Capital Deal 28
- 29. “I can solve anyproblem! I just need to find the people who can help me solve it.” Lori Torres CEO, Parcel Pending OCBJ Innovator of the Year 29
- 30. BUILD A STARTUPTHAT ATTRACTS: RESOURCES PEOPLE CAPITAL 30