How to find startups that have raised Seed or Series A,B round? How to network your way in? How to distinguish budding unicorn from a walking zombie?

1. 291©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
HOW TO GET A JOB
WITH A STARTUP?
Duke University, Professional Masters Programs Seminar Series
August 28th, 2015.
Dragana Mendel
dmendel@anagard.com
Office: +1-919-876-1314

2. 292©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
AGENDA
About ANAGARD, LLC
Getting a job after a graduation with a startup
 First raise money, then hire early employees
 Evaluate startup
 People
 Business Model
 Cash burn rate
 Legal
Q&A

3. 293©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
CAREER PROGRESSION
19 YEARS OF EXPERIENCE --- APPROACHING 20!!! 😁
Product
Manager
Embedded Software Engineer
Software Engineer
Technology Commercialization
(R&D)
Business
Growth
Consultant for
Startups &
Small
Businesses

4. 294©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
BUSINESS GROWTH CONSULTING
MARKET
RESEARCH
Customer Discovery
Target Market Segment
Competition
BUSINESS PLAN
Business Model Canvas
Business Plan Evaluation
& Development
INVESTOR-READY
CONSULTING
Fundraising
Pitch Deck
TECHNOLOGY
COMMERCIALIZATI
ON
Technology – Product –
Market Fit

5. 295©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
Where to find a
by graduation date?

6. 296©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
• Large corporations recruit
from campus
• Follow career office advice
• Network
• Tremendous opportunities
for growth

7. 297©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
A pony
today,
an
unicorn
tomorrow
$1B+
market
size

8. BUY
Unicorn Detector

9. 299©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
Show me
the Money
Who has raised money from investors?

10. 2910©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
SEED STAGE– UP TO $2M RAISED
• Co-Founders
– Few employees
• Angel investors
• Equity crowdfunding
• Bootstrapping

11. 2911©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
VENTURE CAPITAL ROUNDS
SERIES A, B, C, D

12. 2912©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
STARTUPS FUNDRAISING
FORM-D SEC FILLING
Is $Sold > $Offered? http://www.formds.com/locales

13. 2913©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
ANGEL LIST
LOOK FOR COMPLETED FUNDRAISING ROUNDShttps://angel.co/done-deals

14. 2914©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
ANGEL LIST
STARTUP JOB OPENINGS
• Social credibility
• Compensation range (Salary, Equity)
• Geographic preference
• Risk tolerance (Seed, Series A, Series B, Series C round completed)
• https://angel.co/jobs

15. 2915©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
APPROACH CO-FOUNDERS
EXPLAIN HOW YOUR EXPERIENCE WILL GROW THE
STARTUP

16. 2916©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
RECOGNIZE A WALKING ZOMBIE
50% OF NEW COMPANIES CLOSE WITHIN 5 YEARS
WALKING ZOMBIE
Series A Crunch
13+ months since last raise
No press coverage
GROWING COMPANY
Closing fund rounds annually
Consistent quarterly PR announcements
Hiring
Adding new advisors
Today’s Unicorns were founded around 5 years
ago

17. 2917©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
Startup
Interviews
Nothing is set in stone

18. 2918©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
STARTUP
DUE DILIGENCE
People Business Viability Cash Burn Rate Legal
1 2 3 4

19. 2919©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
PEOPLE BUILD SUCCESSFUL BUSINESS
MANAGEMENT
Your personal chemistry with team
Do founders have skills to execute the strategy
Employees
BOARD OF DIRECTORS
Advisors’ reputation & experience

20. 2920©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
TRANSPARENCY
• Ask to see a business plan
• About half of new companies do not
have a business plan
• Having a business plan doubles the
probability of funding
IDEAS ARE COMMODITY, EXECUTION OF THEM IS NOT – MICHAEL
DELL

21. 2921©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
BUSINESS MODEL CANVAS
IS IT FINANCIALLY VIABLE?
The Business Model Generation http://www.businessmodelgeneration.com/canvas

22. 2922©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
WHY STARTUPS
FAIL?
42% NO MARKET
NEED
CUSTOMER
DISCOVERY IS A
KEY

23. 2923©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
CASH BURN RATE
ASK TO SEE PRO-FORMA FINANCIAL STATEMENTS
Close a Series A round in 13
months from seed round, or
perish!
Due Diligence: 6 months to
complete
(Hypothetical) Cash on Hand

24. 2924©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
ZIRTUAL, INC
• Raised ~ $3M two months
before a collapse
• Closed the business
overnight via email to 400
employees
• Had no CFO!
• Had no knowledge about
the burn rate!
• Bought at discount by
Startup.co
FROM $7M TO ZERO IN ONE DAY
Payroll: 400 * 40 * 52 * $12 = ~$10M

25. 2925©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
FINAL STEP: LEGAL DOCUMENTS
Read your contract three times, every single line!
Get consultation from an employment attorney, or
Duke Law School Student Clinic
People Business Viability Finance
Equity, options, vesting schedule, bonuses, salary

26. 2926©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
LEARNING FROM MISTAKES
Undercapitalization
Dysfunctional Team
Business Model
Failure
Operational
Inefficiencies
Inability to execute
Excessive Spending

27. 2927©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
ENTREPRENEURIAL COMMUNITY
• Accelerators
– First Flight Venture Center – experienced
entrepreneurs in residence, hands on 1-1
mentoring
– Triangle Startup Factory, ~$50k for significant
equity stake
– Groundwork Labs
– Cleantech Open Southeast Region $20k,
regional, $200k national award), no equity
stake
– Citrix Innovators Program
– NC Wireless Center
• Incubators
– HQ Raleigh (co-sharing place, community)
– American Underground (Google Tech Hub)
– Think House
programs
• Grants
– NC IDEA $50k
– NC Biotechnology Inception Loan $50k
• Angel Investor Groups
– Blackstone Entrepreneurs Network
– RTP Capital
– Triangle Angel Partners
• Non-Profit Organizations for
Entrepreneurs
– CED (networking, comprehensive events
calendar)
– NC Biotechnology Center
– Small Business Technology Development
Center

28. 2928©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
9360 Falls of Neuse Rd, #205
Raleigh, NC 27615
Office: (919) 876-1314
@DraganaMendel
DMendel@ANAGARD.com
DRAGANA
MENDEL
President, Managing
Director at ANAGARD, LLC
www.anagard.com

29. 2929©2015 ANAGARD, LLC, All Rights Reserved How to get a job with a startup?
Q&A