Over the past few years, there has been a shift in how startups are built and funded, with more emphasis on getting investor money. However, the document's authors discuss that not enough is said about life after taking investor money. They share their experience of taking on investors after 4 years in business. Some of the challenges included investors becoming like bosses with no industry experience and compromising the reasons for starting the business. The authors provide tips for pitching to investors, emphasizing showing traction, keeping the pitch simple at 10 slides, demonstrating the product or vision, and making it entertaining over just discussing plans. They also discuss vetting investors to ensure a good cultural fit and defining exit plans before signing a term sheet.

1. Good, Bad &
the Ugly of VC
funding
Felecia Hatcher & Derick

2. Felecia lost all her hair
after taking on investors

3. 3
Over the past few years we have seen a shift in entrepreneurship
and how businesses are built or the perception of how they should
be built. There is an obsession with getting investor money and the
big SELL OFF. But know one talks about life after the term sheet. How
much it will change your life, how you may compromise the very
reasons you became an entrepreneur. Or the fact that you just took
a very big check in exchange for a boss with no experience in your
industry. We couldn’t find this information before we took the
money so we are sharing some 411 will you today.
Here is the good bad and the ugly...
Here is the good bad and the ugly...
Here is the good bad and the ugly...
3

4. 4
After being In Business
for 4 years we
brought on investors in
2012...
we’re spilling the beans
we’re spilling the beans
we’re spilling the beans
4

5. Follow us on Twitter
• @FeleciaHatcher
• @PearsonDerick
• @YoungandConnected
• Twitter Hashtag #YCVCgoodbadugly for
Questions 

6. There’s more Fiction then Fact
• Myth 1: Angel/VC funding is the Primary Source of
Startup Funding
• Myth 2: Innovators and Investors are the same thing
• Myth 3: All VC’s will provide valuable advice and
mentoring
• Myth 4: Investments will Generate Big Returns
• Myth 5: In VC, Bigger is Better
• Myth 6: Investors Take a Big Risk When They Invest in
Your Company

7. 6 Things I Didn’t Know About Investors
Before I Took the Money
• Taking an investment is essentially a marriage but more like a
shot gun wedding.
• There’s no such thing as a silent partner it’s more like loud
whispers or yelling.
• Vet your potential investor to make sure they are truly a good fit
for your business culture.
• You will need more then Money
• Define your exit plan before you sign the term sheet, because
they have.
• Grow Organically! IF YOU DON’T HAVE TO TAKE THE MONEY
DON’T!

8. If you must insist...
Tips for Pitching to Investors
Tips for Pitching to Investors
• Don’t Pitch the Past Pitch the Vision-
Investors already know what you’ve done they aren’t investing
in your past they want a piece of what your future holds and
your first born :)
• 10 Slide Rule- Keep is Simple
• Put on a Show-Don’t be boring put on a show let your
personality shine through, if your product is live make it very
clear. You are pitching to humans not robots make it
entertaining and peak their interest.
• Traction, Traction, Traction- Its better to be
about it then just talk about it. Create an MVP and paint the
vivid picture or put it in the judges hands

9. Questions @FeleciaHatcher

10. Questions @FeleciaHatcher