How do I Raise Capital? - Lecture at University of Oxford
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Dr Ricardo Schäfer and Sia Houchangnia from the Seedcamp investment team, were invited to give a lecture at the Oxford University Saïd Business School, as part of its flagship lecture series Building a Business. The lecture was given to 200 students interested in learning more about starting a business and the key principles of how to do so. The topic of this lecture is on How to Raise Capital. The lecture was filmed and you can watch the video here: https://youtu.be/KWjtRikKDLE?list=PLtXf43N26ZiefSYP5o2GmMnN6V_WYkUe3
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How do I Raise Capital? - Lecture at University of Oxford
- 1. How do I Raise Capital? Dr Ricardo Schäfer & Sia Houchangnia November 17th
- 2. Sia Houchangnia Dr. Ricardo Schäfer @SiaHouchangnia @SchaeferRic
- 3. Seedcamp is a Founder’s First Round Fund. We invest smart capital into pre-seed and seed stage startups, providing up to €200k and a lifelong platform of Learning, Network and Capital to support the most ambitious Founders.
- 4. #3 most active European investors in H1 2015 Seedcamp platform recognised as a “mini Andreessen Horowitz” for early stage Shortlisted as a “Seed Fund of the Year” in 2015 by GP Bullhound Recognised by the industry as a leading early stage fund
- 5. $350 Million Total funding raised by Seedcamp companies since 2007 Some of the top VCs our companies are raising from 91 87% 89%
- 6. 1. Fundraising - Overview 2. Fundraising - Key Considerations 3. Fundraising - Timeline 4. Current European Funding Environment Agenda
- 7. 1. Fundraising - Overview
- 8. VC = Accelerated growth Bootstrapping = Independence Why Fundraising?
- 9. Founders’ money, Friends & Family ~£50K Business Angels (SEIS), Accelerators, Crowdfunding ~£50K - 250K VCs ~£250K - 1M ~£1M - 5MSeries A Seed Pre-seed Friends & Family round VCs Different investors for different stages Source SizeType of round Inception
- 10. Discipline Expertise Access to network Platform value add Benefits of VC funding
- 11. 2. Fundraising - Key Considerations
- 12. FUNDRAISING IS A CONTINUOUS PROCESS. START PREPARING TODAY
- 13. Stage Focus Sector Focus Geographic Focus Previous Interactions Connections with Peers Invested in Competitors Fund Cycle What to consider when researching VCs
- 14. Don’t forget to track your communications with potential investors Build a fundraising funnel
- 15. When you pitch to VCs Storytelling is key http://seedcamp.com/the-power-of-great-storytelling/
- 16. 1. One Pager 2. Investor Deck 3. Business Model 4. Cap Table Things you need once you start fundraising
- 17. 1. Problem - Every innovation needs a problem - What’s the exact lack in society, industry or technology? 2. Solution - Show in simple words, pictures or graphics how you solve the problem or make your customer happy - What are you doing better then the others or compared to what already exists? 3. The Market - Focus on relevant market (geography, age etc) - Be realistic! - Market value in $ or € 4. Business Model - How do you generate revenue: commission, ad-based etc. 5. USP - Biggest advantage vs competition - Why is your business unique? for example: technology, brand, market leader, UX etc.. 6. Competition - Matrix diagram - Where are you now vs in 5 years? - Why are you different? 7. Go-to-Market Strategy - Chanel, conversion rates, cost of acquisition 8. Vision - Where is the company in the long run? - Expansion plan (geography, products etc) 9. Team - Highlight previous relevant experiences - Quality of team! 10. Financing needs and how you going to spend the money - Milestones for next 6-12 (or 18 months) What to include in a perfect pitch deck
- 18. Starting too late Not speaking to enough VCs Not raising enough Giving away too much equity early on (>25%) Overestimating your chances of success Taking a friend as your lawyer Keep pushing back your timeline for closing the round Not disclosing thorny issues up front Stopping to run the business The pitfalls of fundraising
- 19. 3. Fundraising - Timeline
- 20. DocSend fundraising research, 2015 Some stats on a typical seed round
- 21. Rejections are common…even for Airbnb 7 Rejections, Brian Chesky, 2015
- 22. You need a clear start and finish line for your active fundraising…
- 23. FOMO … as you will need to create: [ = Fear of Missing Out ]
- 24. 1.#Be#Ready All#about#Prep 2.#Start Execute Termsheet 3.#Close Company.readiness Story/deck Rehearsal Company.Strat/plan Numbers Traction Fundraising. Plan Targeting.(fit) Intro’s Drive.the.process *Ultimate. Goal $ (1I6.months) (3I4.months) (1.month) The 3 phases of fundraising: Prepare, Execute, Close Fundraising Guide, Scott Sage
- 25. The timeline of a typical round Fundraising Guide, Scott Sage
- 26. 4. Current European Funding Environment
- 28. Increasing number of Entrepreneurs turned Investors in Europe The State of European Tech, Slush & Atomico, 2015
- 29. New funds being launched The State of European Tech, Slush & Atomico, 2015
- 30. More and more capital for Europe The State of European Tech, Slush & Atomico, 2015
- 31. Crowdfunding & non-VC investors pushing valuations up Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015
- 32. Still a lot to catch up The State of European Tech, Slush & Atomico, 2015
- 33. Thank you