Topics Discussed:
- What is Venture Capital
- Overview of VC Funds
- VC Investment Process
- VC Investing Strategies
- Other Investors
- VC Fundraising Materials
- Resources
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
What is Private Equity?
Present the basic of Private Equity, its strategies, the way it works, the difference between passive versus active investors, exit strategies, its big players and highlight its difference versus other options. Finally, it presents the private equity jobs.
Introduction to Venture Capital and Private Equityguest89b446
I was invited to speak at the HR College of Commerce in Mumbai today as part of their "Corporate Dialogue" lecture series. This deck introduces freshman and sophomore students in commerce, economics and finance to venture capital, private equity and entrepreneurship. It also presents a primer on career options in finance for college graduates in India.
Learning how a VC firm works behind the scenes is a good way to gain important strategic insights on becoming a more attractive investment. But understanding the ins and outs of a VC firm can be easier said than done, even for entrepreneurs who spend a lot of time speaking to investors.
A short introduction to Venture Capital Term Sheets, and in particular the concept of liquidation preferences. Leo Dirac's talk from Ignite Seattle 4. For more detail, see http://embracingchaos.com/business
What Is Private Equity?
Private equity refers to firms that put big chunks of cash from sources such as pension funds or endowments into buying not publicly traded and (often) faltering businesses or assets and selling them for a profit. Private equity invests in a wide variety of industries. It is an asset class consisting of equity securities and debt in operating companies that are on a stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.
Just over six years after the Dodd-Frank Act became effective, private equity firms impacted by the law could get some relief if a bill they’ve championed makes it through an upcoming vote in the House of Representatives. (September, 2016).
After the 2008 financial crisis, private equity took a hit from federal regulators. Beforehand, they faced little oversight. Afterward, they suddenly found themselves with a bunch of new regulatory exams and reporting obligations. While they can play some risky games PEs aren’t as regulated as your normal bank.
PE firms make money off of deals by taking 2 percent of the money it manages and a 20 percent (commission) of the profits above a certain baseline.
What Is Dodd-Frank?
Dodd-Frank was a Wall Street reform bill that was thought up after the 2008 financial crisis to try and avoid a repeat of that disaster. It was the first major change to federal financial regulations in the United States since reforms that came just after the Great Depression.
While it had plenty of critics, it has been championed by many who point out that it succeeded in at least some ways. The SEC reportedly has been taking action against private equity firms lately, including at least one crack down on an adviser who decided not to register as a broker (brokers with more than 15 clients need to register). That case was settled.
Opponents of the House bill point to those successes as reason to keep the rules how they are and not to loosen them.
What Does This New Bill Do?
OK, so it isn’t a repeal of Dodd-Frank, but it does loosen requirements for private equity firms when it comes to what information they have to provide to the SEC. That includes, most importantly, loosened rules for reporting what types of commodities the firms are buying and who is running the show as an adviser.
What is Private Equity?
Present the basic of Private Equity, its strategies, the way it works, the difference between passive versus active investors, exit strategies, its big players and highlight its difference versus other options. Finally, it presents the private equity jobs.
Introduction to Venture Capital and Private Equityguest89b446
I was invited to speak at the HR College of Commerce in Mumbai today as part of their "Corporate Dialogue" lecture series. This deck introduces freshman and sophomore students in commerce, economics and finance to venture capital, private equity and entrepreneurship. It also presents a primer on career options in finance for college graduates in India.
Learning how a VC firm works behind the scenes is a good way to gain important strategic insights on becoming a more attractive investment. But understanding the ins and outs of a VC firm can be easier said than done, even for entrepreneurs who spend a lot of time speaking to investors.
A short introduction to Venture Capital Term Sheets, and in particular the concept of liquidation preferences. Leo Dirac's talk from Ignite Seattle 4. For more detail, see http://embracingchaos.com/business
What Is Private Equity?
Private equity refers to firms that put big chunks of cash from sources such as pension funds or endowments into buying not publicly traded and (often) faltering businesses or assets and selling them for a profit. Private equity invests in a wide variety of industries. It is an asset class consisting of equity securities and debt in operating companies that are on a stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.
Just over six years after the Dodd-Frank Act became effective, private equity firms impacted by the law could get some relief if a bill they’ve championed makes it through an upcoming vote in the House of Representatives. (September, 2016).
After the 2008 financial crisis, private equity took a hit from federal regulators. Beforehand, they faced little oversight. Afterward, they suddenly found themselves with a bunch of new regulatory exams and reporting obligations. While they can play some risky games PEs aren’t as regulated as your normal bank.
PE firms make money off of deals by taking 2 percent of the money it manages and a 20 percent (commission) of the profits above a certain baseline.
What Is Dodd-Frank?
Dodd-Frank was a Wall Street reform bill that was thought up after the 2008 financial crisis to try and avoid a repeat of that disaster. It was the first major change to federal financial regulations in the United States since reforms that came just after the Great Depression.
While it had plenty of critics, it has been championed by many who point out that it succeeded in at least some ways. The SEC reportedly has been taking action against private equity firms lately, including at least one crack down on an adviser who decided not to register as a broker (brokers with more than 15 clients need to register). That case was settled.
Opponents of the House bill point to those successes as reason to keep the rules how they are and not to loosen them.
What Does This New Bill Do?
OK, so it isn’t a repeal of Dodd-Frank, but it does loosen requirements for private equity firms when it comes to what information they have to provide to the SEC. That includes, most importantly, loosened rules for reporting what types of commodities the firms are buying and who is running the show as an adviser.
Presentation on the investment basics for Startups. Essentials of startup investments, focusing on funding cycles, risk management and investor structures.
Venture Financings 101 (SAFEs, Convertible Notes, Seed and Series A) | Bardia...UCICove
An introductory crash course on the typical legal and business terms involved with, and negotiated in, venture capital fundraising including SAFE, Convertible Note, Series Seed and Series A financings.
The beginners guide to venture capital by jimmy stepanianJimmy Stepanian
As a technology company, I like the idea of bootstrapping. In fact, that is how we are building I Like Fashion Retail as a company. We are bootstrapping my business thus far
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
2. What is Venture Capital?
“An asset class where funds make long-term equity investments in startup companies”
Asset Class: Venture Capital is a form of private equity (alternative investment) with lower correlation with
publicly-traded assets.
Long-Term: Unlike public assets, venture capitalists won’t see a return for about 5-10 years (especially in
today’s ecosystem – more companies are staying private longer). High-risk, high-reward.
Equity Investments: Venture capitalists purchase shares (i.e. a %) of private companies in exchange for capital.
An investment is a bet on a (huge) success – a VC is seeking a fundamentally big outcome. Non-majority.
Startup Companies: Private ventures that cannot raise traditional financing (i.e. bank loans, capital markets).
They face high uncertainty and have high rates of failure, but some have been deemed to have high growth
potential or which have demonstrated high growth - VCs want to identify and fund these startups.
5. Venture Capital Firm Personnel
“Without entrepreneurs there would be no startup ecosystem”
Venture Capitalists (VCs) – General Partners or Managing Directors: Most senior person in a VC firm. Typically
make final investment decisions and sit on the BODs of portfolio companies.
Principals: Junior deal professionals assisting companies in recruiting, operations, technology, sales, and
marketing but are not decision makers in the investment process.
Associates: Non-deal partners and work directly for one or more deal partners. They source deals, help with
due diligence on existing deals, and write investment memos about potential investments.
Analysts: Analysts are at the bottom of the ladder and are very junior people, usually recently graduated from
college. Play similar roles to associates.
Venture Partners and Entrepreneurs in Residence (EIR): Part-time members of a VC firm. They help the firm
with managing investments and provide introductions to new ones.
7. Venture Capital Fund Structure
A venture fund consists of many legal entities
The management company legal entity (i.e. Innovate Ventures Management LLC) to which the general
partners belong pays the salaries and expenses from the ~2% management fee the fund pays out annually
The general partners legal entity (i.e. Innovate Partners I GP) is the entity to which the general partners
contribute ~1-2% of the total fund size (to align interests, motives, and incentives) and receive the carry from
the fund.
Each fund (i.e. Innovate Ventures Fund I LP) is a separate entity with limited partners and makes individual
investment in startups (usually not investing in previous companies from new funds)
The fund investors or Limited Partners (LPs) are the entity that commits the majority (98%+) of the fund’s
capital – these funds go into the fund’s legal entity (i.e. Innovate Ventures Fund I LP) – and receive all their
money back (if that’s the case) before any of the general partners do. Then then rest of the profits are
distributed 80% to the LPs and 20% to the GPs.
8. Economics: How VCs Make Money
“2 and 20”
Management Fees: Charge a management fee (% of AUM) per year to cover the costs of
managing the capital (i.e. salaries, rent, utilities, travel etc.), independent of investment
success. Fee begins to decrease after the end of the “commitment period”.
Carried Interest or “Carry”: The share of the profit that a VC keeps after returning all the
capital to the LPs. Must clear the hurdle rate, a certain IRR or return (usually 7-8%) the
VC firm must deliver to the LPs before the GPs carry kicks in.
2%
20%
9. How VCs Make Money Example
A VC firms raises a $100M fund with a 10-year lifetime
• Management fee= (2%) x ($100M) = $2M (each year)
• Over 10 years: ($2M) x (10 years) = $20M
• Therefore there is pressure to continuously raise larger and larger funds – to increase
the total management fee
• The fund returns $2.1B (which is unlikely to happen for most funds)
• Total profit= ($2.1B) – ($100M – original fund size) = $2B
• The original $100M gets return to all the LPs first
• GPs get their 20% carry from the rest of the profits (i.e. $2B)
• (20%) x ($2B) = $200M – this is how much the GPs get
10. Venture Capital Mechanics
Commitment Period
• Typically 5 years
• Length of time to identify and invest in new
companies
• Allocate reserves to each investment for
“follow on” rounds
• This is why VCs raise a new fund every 3-5
years
Investment Period
• The time a fund remains active
• Typically 10 years (“a 10-year fund”)
• Extensions are allowed, but are limited
• Management of investments goes beyond
period:
1. Distribute private stock of these companies to LPS
2. The LPs pay more to keep the fund alive (in the
hope for these companies to return a multiple)
3. Sell to secondary market and close the fund
12. VC Investment Process
• Identification
(i.e. deal
sourcing)
• Terms (i.e.
term sheets) –
tons of legal
papers
• Investment
decision
Evaluation
Initial
Negotiation
Due Diligence
Final
Negotiation/
Decision
Supporting/
Monitoring
Sourcing
• Initial screening
• 2nd screening
(workshop – deeper
dive with more
members of the
team)
• Light due diligence
• Partner meeting
with investment
memo and thesis
(entrepreneur is
invited to present)
• Due diligence (in-
depth, rigorous
due diligence)
• Board service
• Assist
management
with sales,
marketing,
recruiting,
networking,
fundraising etc.
Out of 1,000 companies a partner ends up investing in 3 to 4 of them on a yearly basis. That’s only .2%
Fundraising Timeline ~6 Months
13. VC Fund Lifecycle
Raise
Capital
First 1-2
Call Capital
1-4
Generate
Deal Flow
First 3
Make
Investments
First 3-5
Monitor,
Support
Investments
Always
Follow-On
2-5, and
6-10
Sell,
Harvest
Investments
5-15
Recycle,
Return
Capital to
LPS
5-15
Get to
Carry
8-15
Rinse and
Repeat
3-5
YEARS
14. VC Full Picture
Raise Capital from Investors Generate Deal Flow
Closing of Fund
First Capital Call
Screen
Business
Plans
Evaluate and
Conduct Due
Diligence
Negotiate
Deals and
Staging
Additional
Capital Calls
Invest Funds
Value Creation and Monitoring
• Board service
• Performance evaluation and reviews
Harvesting Investment
IPO | LBO | M&A | Liquidation
Distributing Proceeds
Cash | Public Shares | Other
• Recruitment management
• Assists with external relationships and
fundraising
Year 0-1
Year 1-3
Year 4-8
Year 9-15
16. Types of Venture Capital Firms
Micro VC Funds. Small venture firms with usually less than $15MM in total capital per fund. Almost exclusively
invest at the seed and early stages, often alongside other angels and VC firms. (e.g. Maccabee Ventures)
Seed-Stage Funds. Generally bigger than micro VCs and can scale up to $150MM per fund. They focus on being
the first institutional capital into a company and rarely invest in rounds past Series A. Often provide a
company’s first non-company board member.
Early-Stage Funds. Funds that are generally $100-300MM in size and invest from Seed-Series B. Often continue
to invest later in the life of the company.
Mid-Stage Funds. Funds that range from $200MM-1B in size and generally invest in Series B and later rounds.
Often called ”growth investors” and provide capital to grow and scale.
Late-Stage Funds. Invest in successful stand-alone businesses, typically doing its last financing before an IPO
17. VC Investments at Different Stages
Early-Stage
• Founder/team focused
• Ideation and product-
market-fit (PMF) risk
• Often own more of the
company
• Smaller investments with
potential for large returns
Mid-Stage
• Team/product focus
• Traction/scaling risk
(sales and marketing)
• Provide capital to
grow and scale
• “Pouring gas on the
fire”
Late-Stage
• Exit risk
• How big can the
market become
• IPO and acquisition
potential
• Mix of VCs, PE, and
public investors
(mutual funds)
VC Alphabet: Pre-Seed à Seed à Series A à Series B à Series C à Series D…
18. What VCs Look For
“Management, Management, Management”
TEAM: people/management that can get the job done
MARKET: a large, rapidly expanding market
PRODUCT: a brilliant, unique idea or technology that can be commercialized
BUSINESS MODEL: a well-prepared and focused business plan that provides clear direction
TRACTION: proof that there is customer demand behind a particular idea
DIFFERENTIATION: a strategy that has a strong, sustainable competitive advantage
VALUATION: a reasonable price per share
Also see Blumberg Capital’s 6 T’s
19. What entrepreneurs need to successfully articulate
to investors is how much money their company can
return to the VCs.
There must be a clear roadmap to a >10x return
because VCs will only have a handful of huge
successes out of every 10, 20, or 50 investments, and
those successes need to be large enough to provide
outsize returns (i.e. return the fund and then some).
VCs want to believe that every deal they make can
accomplish this.
21. Angel Investing
Angel Investors: Individuals who invest their own money into startups
• Usually the first money into a company and don’t often earn a large return (dilution)
• They are people who enjoy being in the ecosystem and helping companies grow
Characteristics of a successful Angel investor:
• Patient, even-tempered and risk tolerant
• Self-disciplined
• Learning Mindset and an ability to mentor
• Financial + Networking Guru
Benefits of Angel Groups/Syndicates:
• Pooled capital for more sizable angel investing
• Pooled deal flow – ability to see more opportunities that are more vetted
• Shared expertise and due diligence – different expertise and long verification process
• Better negotiations when you can deploy more capital into a company
• Governance – one angel (leader) with an active role for guidance on behalf of the group
22. Other Flavors of VC
Incubators. Places where multiple startups rent office space and have access to some shared or à la carte
services. These companies benefit from the symbiosis or energy of being around other startups and bumping
into investors, developers, and other relevant people.
Accelerators. Startup accelerators support early-stage companies through education, mentorship, and
financing. Accelerators usually invest a small amount $20k in exchange for a small amount of equity (6%) with
additional follow-on available ($100k). Startups enter accelerators for a fixed-period of time (~3 months), and
as part of a cohort of companies.
CVC. A venture firm that is sponsored and backed by a corporation, often but not always part of a publicly
traded company
Crowdfunding. When a group of individuals funds a company either through equity purchase, debt purchase,
pre-sale ordering of a product, or gifting of money (i.e. donation) – JOBS Act 2012
24. The Termsheet
Economics: refers to the return the
investors will ultimately get in a
liquidity event...and the terms that
have direct impact on this return.
(i.e. valuation, price or option pool)
Control: refers to the mechanisms
that allow the investors either to
affirmatively exercise control over the
business or to veto certain decisions
the company can make. (i.e. board
seats or protective provisions)
Termsheet: A non-binding summary document of key terms in contemplation of a financing
25. The Cap Table
The cap table summarizes who owns
what part of the company before and
after the financing and is almost
always included in a termsheet.
Key Elements:
• Pre- and post-money valuation
• Amount raised
• % Ownership
• Post-investment share total
• Option pool %
Cap Table: The spreadsheet that defines the economics of a deal
26. The Pitch Deck
Problem
What is the problem the
company is addressing and
why?
Vision
What is the future state you are
striving to realize?
Solution/Value Prop.
This slide should outline what
your company is doing and
how.
Market
Illustrate how big the market is.
TAM, SAM, SOM.
Team
Share the key members of the
team and their backgrounds.
Traction
These slides show how the
company is doing. Show
metrics.
Business Model
These slides show your GTM
and monetization strategy
Competition
Outline the players in your
market and explain why you
are different.
Ask
State how much are you raising
and what the goals are for the
financing.
27. Other Fundraising Materials
Elevator Pitch: A short description (few sentences/paragraphs) of an idea, product or company that
explains the concept in a way such that any listener can understand it in a short period of time.
Executive Summary: A 1-3 page description of your idea, product, team, and business. Should be
short, concise, and well-written.
Business Plan: Usually a 30-plus-page document that goes into great detail about a business’
market, product, target customer, go-to-market strategy, team, and financials.
Private Placement Memorandum (PPM): A traditional business plan wrapped in legal disclaimers
Financial Model: 100% of them are wrong. VCs focus on (1) assumptions of the underlying revenue
forecast and (2) the monthly burn rate or cash consumption
Demo: VCs learn a lot about a product/service from a demo and can connect emotionally with it.
28. Additional Resources
Books
• Venture Deals
• The Entrepreneurial Bible to Venture Capital
• Secrets of Sand Hill Road
• Grit
• Loonshots
• The Future is Faster Than You Think
Podcasts
• The Full Ratchet
• a16z Podcast
• This Week in Startups
• How I Built This
• Masters of Scale
Blogs/Newsletters
• a16z Newsletters
• AVC
• Both Sides of the Table
• Andrew Chen’s Essays
• Trends by The Hustle ($$)
• Pitchbook Blog
Miscellaneous
• Full list of the best books, blogs, and podcasts
• Venture Capital and Startup Glossary