How do I Raise Capital?
Dr Ricardo Schäfer & Sia Houchangnia
November 17th
Sia Houchangnia Dr. Ricardo Schäfer
@SiaHouchangnia @SchaeferRic
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.
#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
$350 Million
Total funding raised by
Seedcamp companies since 2007
Some of the top VCs our
companies are raising from
91
87%
89%
1. Fundraising - Overview
2. Fundraising - Key Considerations
3. Fundraising - Timeline
4. Current European Funding
Environment
Agenda
1. Fundraising - Overview
VC = Accelerated growth
Bootstrapping = Independence
Why Fundraising?
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
Discipline
Expertise
Access to network
Platform value add
Benefits of VC funding
2. Fundraising - Key Considerations
FUNDRAISING IS A
CONTINUOUS PROCESS.
START PREPARING TODAY
Stage Focus
Sector Focus
Geographic Focus
Previous Interactions
Connections with Peers
Invested in Competitors
Fund Cycle
What to consider when researching VCs
Don’t forget to track your
communications with potential
investors
Build a fundraising funnel
When you pitch to VCs
Storytelling is key
http://seedcamp.com/the-power-of-great-storytelling/
1. One Pager
2. Investor Deck
3. Business Model
4. Cap Table
Things you need
once you start fundraising
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
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
3. Fundraising - Timeline
DocSend fundraising research, 2015
Some stats on a typical seed round
Rejections are common…even for Airbnb
7 Rejections, Brian Chesky, 2015
You need a clear start and finish
line for your active
fundraising…
FOMO
… as you will need to create:
[ = Fear of Missing Out ]
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
The timeline of a typical round
Fundraising Guide, Scott Sage
4. Current European
Funding Environment
The European unicorns
Increasing number of Entrepreneurs
turned Investors in Europe
The State of European Tech, Slush & Atomico, 2015
New funds being launched
The State of European Tech, Slush & Atomico, 2015
More and more capital for Europe
The State of European Tech, Slush & Atomico, 2015
Crowdfunding & non-VC investors
pushing valuations up
Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015
Still a lot to catch up
The State of European Tech, Slush & Atomico, 2015
Thank you

How do i raise capital oxford lecture

  • 1.
    How do IRaise Capital? Dr Ricardo Schäfer & Sia Houchangnia November 17th
  • 2.
    Sia Houchangnia Dr.Ricardo Schäfer @SiaHouchangnia @SchaeferRic
  • 3.
    Seedcamp is aFounder’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 activeEuropean 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 fundingraised 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.
  • 8.
    VC = Acceleratedgrowth 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 Platformvalue add Benefits of VC funding
  • 11.
    2. Fundraising -Key Considerations
  • 12.
    FUNDRAISING IS A CONTINUOUSPROCESS. START PREPARING TODAY
  • 13.
    Stage Focus Sector Focus GeographicFocus Previous Interactions Connections with Peers Invested in Competitors Fund Cycle What to consider when researching VCs
  • 14.
    Don’t forget totrack your communications with potential investors Build a fundraising funnel
  • 15.
    When you pitchto 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 - Everyinnovation 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 Notspeaking 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.
  • 20.
    DocSend fundraising research,2015 Some stats on a typical seed round
  • 21.
    Rejections are common…evenfor Airbnb 7 Rejections, Brian Chesky, 2015
  • 22.
    You need aclear start and finish line for your active fundraising…
  • 23.
    FOMO … as youwill need to create: [ = Fear of Missing Out ]
  • 24.
  • 25.
    The timeline ofa typical round Fundraising Guide, Scott Sage
  • 26.
  • 27.
  • 28.
    Increasing number ofEntrepreneurs turned Investors in Europe The State of European Tech, Slush & Atomico, 2015
  • 29.
    New funds beinglaunched The State of European Tech, Slush & Atomico, 2015
  • 30.
    More and morecapital for Europe The State of European Tech, Slush & Atomico, 2015
  • 31.
    Crowdfunding & non-VCinvestors pushing valuations up Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015
  • 32.
    Still a lotto catch up The State of European Tech, Slush & Atomico, 2015
  • 33.