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.

1. Fundraising
Angela Lee
Founder, 37 Angels
Professor, Columbia Business School

2. What we will cover
Funding avenues
VC/Angel Fundraising process
Terms

3. Grants
Equity
Debt
Revenue
Different funding avenues

4. Control Growth

5. ✔ What does success 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

10. Source: mpd.me

11. Grants
Equity
Debt
Revenue
Different funding avenues

12. What we will cover
Funding avenues
VC/Angel Fundraising process
Terms

13. Founder
Lead Investor Non-Lead Non-Lead
Non-Lead Non-Lead

15. What we will cover
Funding avenues
VC/Angel Fundraising process
Terms

16. Term sheet decisions
❑ How much to raise?
❑ At what valuation?
❑ What additional terms?

17. 15-25%
18 Months

18. Product Team Sales

19. Pitchbook NVCA venture monitor

20. Term
Board of
Directors
Information
rights
Pro rata
rights
Typical for 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 Sheet Series Wrap Up (feld.com)

22. Questions?