Many very successful businesses have been and will be built without raising venture capital. However, for certain high growth businesses one or multiple rounds of growth capital are necessary

1. Raising Capital for
Your Startup
Sean Ammirati
Partner, BirchmereVentures
Adjunct Professor, Carnegie Mellon University
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2. Only a few companies
should RaiseVC $
(but that is our focus for next 45 minutes)
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3. When should approach
VC re:investing?
Revenue EBITDA
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4. A VC’s Job:
!
Step 1: Find the best companies
Step 2: Invest on rational terms
!
Step 3: Help them grow till exiting for a
much higher valuation
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5. 1 Investment:
100 - 150 Pitches
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6. !
!
!
What makes a great
investment?
The Relevant Question ...
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7. 1 Fantastic Team
2 Large Market
3 True Differentiation
4 MarketValidation
5 Fit with the Fund
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8. Rational Terms
• Amount
• Preferences
• Control
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9. Quick Summary
• Liquidation
Preference
• Board Seat
• Budget Approval
• Information Rights
• Pro-Rata Rights
Pre-Money
Valuation
Investment
Post-Money
Valuation
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10. How do you determine
valuation?
• Team,Traction, Stage & Sector
• Exit Expectations (next slide)
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11. Exit Expectations
At early
stage
10x
Success
Return Capital
Write Off
Portfolio 3x
(really relative to otherVCs same vintage)
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12. #CMULean

13. For Next Week ...
!
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14. ~7 Slide / 15 minute
“Pitch”
1.Problem & Solution (summarize AE 1)
2.Business model (summarize AE 2)
3.Market Opportunity (summarize AE 3)
4.Next MAP you want to validate
5.Mockup or Specification for that MAP
6.Projections and milestones (beyond next MAP)
7.Budget
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