Keynote presentation from Pioneers Festival 2015 in Vienna, covering (1) a European startup fundraising survey (2) practical tips, advice and hacks for successfully raising funds from VCs ... as well as some candid feedback from entrepreneurs about what they like and don't like about raising money.
Advice for startups on hacking the venture capital process combined with results of an entrepreneur survey about fundraising in Europe - from a partner at Accel
A guide for entrepreneurs trying to raise angel and venture capitalguest8e6a0
Insight from a venture capital partner on the right way to think about the startup fundraising process. Whether you're approaching family, angels or large venture capital firms, many of the same themes apply.
The Angels 8Q: Eight Questions Investors & Startups Should Ask to SucceedJoseph de Leon
This started as a personal guide so I could be a better Angel Investor.
It developed into a Playshop that was first conducted at the Global Seedstars Summit [Lausanne, Switzerland 2019].
Rather than answers, I hope this helps you find your own questions.
Capital raising tips and tricks - Based on some of the main questions we get on raising capital, here are some tips and tricks to successfully do so. Here at Wilson, we get many questions on how to best raise capital, how to reach out to family offices, how to raise money for businesses, funds, investments, etc., and which strategies, tips, and tactics we would recommend be implemented to have successful capital raising.
What is a family office? What are family offices doing today? How should we reach out to family offices? How should we reach out to investors in general? What's the best way to position ourselves?
Your UX Career Path: In-house, agency, both or neither?Fell Swoop LLC
With User Experience designers in such high demand, those entering the field today have more choices than ever before. There’s no single right way to embark on your journey, but many before you have uncovered a path to success, so why not learn from them? Matt Dente has shared insights from surveys and interviews with UX professionals in this presentation. If you’re planning your first step in a career, or considering your next move, this presentation will provide insights that will help you make the right choices for your own path.
Start MIT- 10 Tips for Student Entrepreneurs - Jan 2022David Chang
People with all different backgrounds end up on the entrepreneurial journey, and no two paths are alike. While you’re at MIT with its unique resources and community, it’s an ideal time to explore your potential paths. Join this session to hear about one founder’s accidental journey into entrepreneurship and learn about 10 key do’s and don’ts for student entrepreneurs.
Advice for startups on hacking the venture capital process combined with results of an entrepreneur survey about fundraising in Europe - from a partner at Accel
A guide for entrepreneurs trying to raise angel and venture capitalguest8e6a0
Insight from a venture capital partner on the right way to think about the startup fundraising process. Whether you're approaching family, angels or large venture capital firms, many of the same themes apply.
The Angels 8Q: Eight Questions Investors & Startups Should Ask to SucceedJoseph de Leon
This started as a personal guide so I could be a better Angel Investor.
It developed into a Playshop that was first conducted at the Global Seedstars Summit [Lausanne, Switzerland 2019].
Rather than answers, I hope this helps you find your own questions.
Capital raising tips and tricks - Based on some of the main questions we get on raising capital, here are some tips and tricks to successfully do so. Here at Wilson, we get many questions on how to best raise capital, how to reach out to family offices, how to raise money for businesses, funds, investments, etc., and which strategies, tips, and tactics we would recommend be implemented to have successful capital raising.
What is a family office? What are family offices doing today? How should we reach out to family offices? How should we reach out to investors in general? What's the best way to position ourselves?
Your UX Career Path: In-house, agency, both or neither?Fell Swoop LLC
With User Experience designers in such high demand, those entering the field today have more choices than ever before. There’s no single right way to embark on your journey, but many before you have uncovered a path to success, so why not learn from them? Matt Dente has shared insights from surveys and interviews with UX professionals in this presentation. If you’re planning your first step in a career, or considering your next move, this presentation will provide insights that will help you make the right choices for your own path.
Start MIT- 10 Tips for Student Entrepreneurs - Jan 2022David Chang
People with all different backgrounds end up on the entrepreneurial journey, and no two paths are alike. While you’re at MIT with its unique resources and community, it’s an ideal time to explore your potential paths. Join this session to hear about one founder’s accidental journey into entrepreneurship and learn about 10 key do’s and don’ts for student entrepreneurs.
How to establish credibility when pitching investors (VCs or angels) by Jeff Bussgang, Flybridge Capital general partner and Harvard Business School EIR
How to Survive & Thrive in Today´s High Risk Business World.
In this new economy that we are living, "Culture of High Risk," Companies can lose phenomenal sums of money for months and deny that anything is amiss, until losses are too large to be ignored. Then they look for the downsizing employees in a futile attempt to cut their losses. When asked why they didn´t do anything about their mounting losses earlier, some companies use to say “We are waiting for it to turn around” or “We can´t do much about it because we can´t get the right employees to cooperate”...these excuses are nothing more than denials that the situation is bad and must be changed.
ABC's of selling high Tom Starr Live AdvisorsThomas Starr
Attitude, Big Idea, Concern. Tom Starr, Tom Starr Live CEO outlines the three biggest keys to success when calling on VITO, Profit Center Leader in the C-Level Suite.
Career planning is a long process. Sometimes you get lost along the way, but hopefully this presentation can direct you to the right destination.
More themed slides here: https://slideshop.com/Themed-Slides
Startup Jump Start: Angel Investing in the Philippines (Xavier Alumni Confere...Joseph de Leon
The Why, How & What of Angel Investing in the Philippines. Prepared by Joseph de Leon, Consultant for Gravitas Prime & Leadership Committee of Manila Angel Investors Network [MAIN] for the First Xavier Alumni Conference (10 September 2016).
Drilling down into business fundamentals, founders and fit, here are some effective questions Angels ask to see which startups stand-out.
An updated edition with expanded content prepared for https://www.sandboxph.org/
Strategy 103 Advertising Strategy Crash Course (IACTJoseph de Leon
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How to establish credibility when pitching investors (VCs or angels) by Jeff Bussgang, Flybridge Capital general partner and Harvard Business School EIR
How to Survive & Thrive in Today´s High Risk Business World.
In this new economy that we are living, "Culture of High Risk," Companies can lose phenomenal sums of money for months and deny that anything is amiss, until losses are too large to be ignored. Then they look for the downsizing employees in a futile attempt to cut their losses. When asked why they didn´t do anything about their mounting losses earlier, some companies use to say “We are waiting for it to turn around” or “We can´t do much about it because we can´t get the right employees to cooperate”...these excuses are nothing more than denials that the situation is bad and must be changed.
ABC's of selling high Tom Starr Live AdvisorsThomas Starr
Attitude, Big Idea, Concern. Tom Starr, Tom Starr Live CEO outlines the three biggest keys to success when calling on VITO, Profit Center Leader in the C-Level Suite.
Career planning is a long process. Sometimes you get lost along the way, but hopefully this presentation can direct you to the right destination.
More themed slides here: https://slideshop.com/Themed-Slides
Startup Jump Start: Angel Investing in the Philippines (Xavier Alumni Confere...Joseph de Leon
The Why, How & What of Angel Investing in the Philippines. Prepared by Joseph de Leon, Consultant for Gravitas Prime & Leadership Committee of Manila Angel Investors Network [MAIN] for the First Xavier Alumni Conference (10 September 2016).
Drilling down into business fundamentals, founders and fit, here are some effective questions Angels ask to see which startups stand-out.
An updated edition with expanded content prepared for https://www.sandboxph.org/
Strategy 103 Advertising Strategy Crash Course (IACTJoseph de Leon
A crash course on Advertising and Strategy shared with IACT. Uncovering the Issues that matter, discovering the Insights that make a difference and developing them into Ideas that that stand out.
An insider look of a venture capital fund. What it takes to successfully raise funds Knowledge learned over years of working for one of the top tier VC funds
Marina Hatsopoulos. Entrepreneur, Director at Cynosure and Levitronix Technologies; Advisor, MIT Enterprise Forum Greece, The EGG accelerator, OK!Thess
Tips and techniques for raising your first round of financing from entrepreneur turned VC Jeff Bussgang of Flybridge Capital and Harvard Business School.
How to Raise Your First Round of Capital - January 2020Jeffrey Bussgang
A step by step guide to raising your first round of capital -- from angels or venture capitalists (VCs) -- from a VC veteran and Harvard Business School (HBS) professor
Demetris C. Hadjisofocli. Presentation of information on how any individual can explore the opportunity to set up and manage their own business and how they can turn an idea into a business opportunity in the area of social enterprise or regular business. This presentation was given to a group of individuals with various types of disabilities and the purpose was to inform them, encourage them, and facilitate their introduction into the business world. A definition of systemic entrepreneurship, a termed and a process that I developed and coined and use the last 2 years, was given out.
Similar to Fundraising Hacks - Pioneers Festival 2015 by Fred Destin at Accel Partners (20)
4. The Hustle
Pan-European Network Vertical Focus Coverage
Cross Border FinTech
Next-Gen Infrastructure & Security
Mobile Marketplaces
Strong Companies in Leading Geos
Strategic Relationships with European Teams
Mind Share Within Europe
Shared Global CRM
8,000+ Tracked companies
Calls with founders
Meetings
2,000+
1,000+
21 3
5. Dealfow = Lifeblood. Mostly outbound.
• Portfolio companies act
as local “Accel
Ambassadors”
• Organization focused on
uncovering opportunities
early
• Methods: AppAnnie,
Mattermark, systematic
press coverage (new
products releases,
awards, HN etc)
• Strong local presence:
hosted over 500
entrepreneurs across 10
events in 9 cities over the
last year
6. Reality check
You are trying to get the attention of people who have 8 - 12
meetings per day and may not remember your name
At any time you are competing with:
- 10+ other projects inside a fund and
- 100+ startups in the market at large
Efficient time management is the #1 skill required
to survive as a venture capitalist
7.
8. 1: Completely Disagree
10: Completely Agree
Survey Results
97 responses
Bias towards early stage
Over 50% found the process of raising VC
confusing, opaque and frustrating
9. How many investors did you meet ?
28% met less than 5 Investors
59% met less than 10 Investors
How long did it take ?
66% spent more than 3 mo
26% spent more than 6 mo
10. Star Investments
Recent activity
Board Load
Cultural Fit
“It was clear to me which partner I should approach at a given firm”
All about the right partner
1: Completely Disagree
10: Completely Agree
11. Number of Accel-funded
startups where contact
came from cold email
1
“I managed to get meetings only through introductions”
Sometimes …
cold emailing works
So what ?
12. Intellectually lazy
Pattern recognition
pushed too far
Lesson givers
Know it alls
“In general, the VCs I met displayed a strong grasp of my business”
What an indictment of European VC !
13. Invaluable insights
Inspired to excel
Kicked my butt
Some VC's offered advice and insights
that I found very meaningful to my business
Common theme : some VC’s stand out
… in a sea of mediocrity
28%
Burnt
14. What characteristics matter most to you in a VC ?
Trustworthy
Entrepreneur Friendly
Quality and Depth of Network
Experienced
Supportive
Track record of success
Risk Taking
Collaborative
Global Platform / Global Reach
Visionary
Hands-On and Engaged
Influential
Analytical
Expert
Thought Leader
Innovative
Emerging, rising star
0 17.5 35 52.5 70
15. Process was transparent and fast
Process opacity drives entrepreneurs mad
“Founders don’t care about difficulties, they complain about unkowns”
I got a clear no
16. Entrepreneur’s VC turnoffs
Approach Engagement Behavior
Intellectually Lazy
Patronizing
Tell you what to do instead of asking
questions
Know-it-alls
ADD
Do not take time to understand
Lack of risk taking mentality
Focused only on financials
ARROGANT
Cold
Unapproachable
Unresponsive
“Radar Play”
Send young attractive associates at events
playing interested and driving endless follow-ons
ARROGANT
Not responsive
Slow
Unprepared
Checking email !
Playing for time
Hanging around the hoop
Fund competitors
Aggressive on terms
Bait-and-switch
ARROGANT
21 3
16
17. Now What ?
“Overall, I've met with pretty nice people. Most of them are lazy/dumb
as f*ck and spend too much time in networking events/conference,
drinking champagne, living off their management fees, but they’re
friendly :) So the worst that happened was probably agreeing to
countless meetings where VC's would just squeeze market info,
without real appetite.”
20. Get in
Do your Research
Don’t
Get the intro
Crunchbase / Angellist / LinkedIn
Investments led
Leverage the junior guys
Map them on LinkedIn
Invite me on LinkedIn
Hassle me on Twitter
Invite me for coffee
Use other naive methods
Get upset if I don’t respond to unsolicited email
Target the individual not the firm
Founders are best
People in your sector are good
Personal friends work well
Multi-target the same person
Get noticed
Blogger press
Product Hunt
Awards are OK
Accelerators are OK
Clients / traction are best (duh!)
Leverage the intro
Short, focused emails / TL;DR
Seduce and intrigue
Generate tension if you are raising
Be persistent
21. Fundraising facts
Fact 2: You are talking to too few investors
Fact 1: Inbound Marketing Wins
21
Fact 3: You are over-estimating your chances of success
22. First call or meetingTurndown 75%
In-depth meeting
Engaged process
Turndown 50%
Turndown 75%
Turndown 50%
Turndown 50%
Partnership presentation
Term-sheet presented and deal done
1,000 teams
250 teams
125 teams
30 teams
15 teams
Illustrative Funnel
23.
24. JohnAccel 2. In-depth meetingDestin Concerned about US
Fundraising is a campaign
SteveIndex 1. First MeetingRimer Scheduled 5/30
JohnSequoia 0. Intro MadeBotha Chase 5.27
Mark L.A16Z 1. First MeetingJordan Scheduled 6/12
IntroFund StagePartner Status comment
…
SteveDST Seeking IntroLindfors To Do
25. Some founder pitch advice
Dry run with friends + Train on 2 shitty funds
Know your metrics cold
Your pitch must be perfectly prepared so that
Understand your audience
Know your unit economics cold
Know your risks and be open about them
Be exciting and memorable
Be brave, confident and totally honest
Enjoy yourself - good humour is contagious
You can deviate effectively
You can focus on the audience’s reactions
You can always stay on track
DON’T
Pitch the market
Pitch the competition
Give long answers to questions
Get sidetracked for too long
Fear silence
Get funded (vs. being right)
Get to the next meeting
Create relationship
Detect toxic investors
YOUR OBJECTIVES
26. Level Up - Hacks
Build intangible value : visible board, visible advisors
Practice concerted pitching
Give anyone an excuse to say no
Give overly punchy price guidance
Miss any short term numbers
Hide bad news
Badmouth the competition
Disclose widely that you are
fundraising
Disclose who you are talking to
Treat bad offers seriously
Ever take money from assholes
Engineer regular, personalized progress points
Pace news flow (e.g. new customer wins)
Engineer tension in the process (at the right time)
Work to (credible) deadlines
Frame the market yourself & reframe questions
Prepare the data ahead of time (e.g. cohorts)
Practice data rationing
Volunteer diligence contacts
DON’T
28. And remember … everyone starts small
Drew Houston and Arash Ferdowsi's
apartment in 2007
Mike Cannon-Brookes and Scott Farquhar’s
first office, based out of the local Kinko’s
Sachin Bansal and Binny Bansal in 2008 at
their first office, which was also the warehouse
Ilkka Paananen sitting at his cardboard
desk in 2010
Mark Zuckerberg’s dorm room in 2005 where
the first versions of Facebook were built
Girish Mathrubootham in FreshDesk’s
first office where rent was $160 per
Cloudera founding team in their first
office in 2009
Stewart Butterfield working out of Tiny
Speck’s first office in 2010
29. Be a VC - happy founder
1. Being turned down is the norm
2. You can build (real) relationships
3. You are part of an ecosystem
4. Pay-it-forward
29