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Fundraising - Angela Lee
The document discusses different funding avenues for startups including grants, equity, debt, and revenue. It covers venture capital, angel investing, equity crowdfunding, SBA loans, bank loans, and factoring. It notes that VC/angel funding provides fast access to capital and strategic help but requires giving up control and pressure to grow. Debt options retain control but are hard to qualify for. The document also discusses term sheets, deciding how much to raise and at what valuation, additional terms, board composition, information rights, and pro rata rights for seed stage investors.
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Fundraising - Angela Lee
- 1. Fundraising Angela Lee Founder, 37Angels Professor, Columbia Business School
- 2. What we willcover Funding avenues VC/Angel Fundraising process Terms
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- 5. ✔ What doessuccess mean to you? Pace, size, duration ✔ How much money do I need? ✔ What help do I need? ✔ How much control do I want?
- 7. Grants Equity Debt Revenue Different funding avenues ●Venture capital ● Angel investing ● Equity crowdfunding ✔ Fast access to capital ✔ Strategic help � Give up control � Pressure to grow
- 8. Grants Equity Debt Revenue Different funding avenues ●SBA loans ● Bank loans ● Factoring ✔ Retain control � Hard to qualify � Cash leaving company
- 9. Grants Equity Debt Revenue Different funding avenues ✔Retain control � Slower pace of growth
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- 12. What we willcover Funding avenues VC/Angel Fundraising process Terms
- 13. Founder Lead Investor Non-LeadNon-Lead Non-Lead Non-Lead
- 15. What we willcover Funding avenues VC/Angel Fundraising process Terms
- 16. Term sheet decisions ❑How much to raise? ❑ At what valuation? ❑ What additional terms?
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- 19. Pitchbook NVCA venturemonitor
- 20. Term Board of Directors Information rights Pro rata rights Typicalfor seed stage • 5: 2 founders, 2 investors, 1 independent (compensated) • Often major investors only • Monthly / quarterly financials • No rights, maintain %, increase % ownership
- 21. Brad Feld’s Term SheetSeries Wrap Up (feld.com)
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