This document discusses fundraising and provides advice on the topic. It notes that fundraising is difficult but a consequence of gaining traction, not an objective. There are only five valid reasons for raising funds: having an experienced team, a great product, breakthrough technology, social proof, and traction. It advises fundraising high and as early as possible if the team is strong, and waiting until the product or technology is ready otherwise. Social proof is an opportunity not a strategy, and traction remains most important. It also covers negotiation tactics, term sheets, and the importance of a good lawyer for fundraising.

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TheFamily
FUNDRAISING

2. FUNDRAISING
• Fundraising is a catalyst
• It’s a consequence of having traction, not an objective
• It’s hard, very hard...
• ... EVERYWHERE! Silicon Valley is not an exception
WHY?

3. REASONS TO RAISE FUNDS
THERE ARE ONLY 5
FUNDRAISING

4. TEAMwith at least one exit
FUNDRAISING

5. PRODUCTDUDE, THIS IS AWESOME
FUNDRAISING

6. TECHNOLOGY
Google nothing less
FUNDRAISING

7. SOCIAL PROOF
Do you know Justin?
FUNDRAISING

8. TRACTIONThe king choice, Indisputable
FUNDRAISING

9. IF (TEAM) THEN
FUNDRAISE HIGH & ASAP
FUNDRAISING

10. IF (PRODUCT OR TECHNO)
THEN FUNDRAISE WHEN IT IS READY
FUNDRAISING

11. Social proof is not a strategy
it’s just an opportunity, if you get it - leverage it
FUNDRAISING

12. But be realistic
traction is still the king
EASIER TO HAVE A GOOD
TERM SHEET if you have traction
FUNDRAISING

13. Yes! valuation...
...it’s a non-problem
FUNDRAISING

14. valuation
it’s a negotiation tool
FUNDRAISING

15. the Term Sheet
a pact with the devil
(wake up! it’s technical)
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16. • Stock price x nbr of stock = valuation
• Liquidation preference
• Anti-dilution
• Vesting (bad leaver / good leaver)
• Employee Pool
valuation
FUNDRAISING

17. Board
control
Special
Rights
Drag-along / Tag-along
FUNDRAISING

18. • Dividends
• Preconditions
• Milestones
• Information Rights (don’t be casual)
• Preferred stock
• Exclusivity
other clauses
FUNDRAISING

19. Fonds
Les acteurs de l’investissement
Angels
SeedVC VC
FUNDRAISING

20. negotiation tactics
NEGOTIATE the unimportant stuff AND CONCEDE
in order to get what’s really important
FUNDRAISING

21. if YOU’re not desirable
IT’S JUST A WASTE OF TIME!
FUNDRAISING

22. • ATTENTION! A bad lawyer is harmful
• You are always going to pay the investors’
lawyers so MAX CAP
• It’s like that, don’t even try to change this
practice
• What is a good lawyer?
With Serge Vatine
your lawyer
FUNDRAISING

23. You are Welcome to Join the Adventure
hey@thefamily.co