Learn whats needed to become an Angel Investor in today's world. Start your Start-up journey here!
About Author:
Manish is the co-founder of www.LetsVenture.com
Manish is a passionate mentor & business coach. He works with technology start-ups to help them get established and started-ups in helping them scale. As an angel investor he also invests in innovative start-ups.
Manish serves on the board of companies ranging from technology businesses, consumer businesses, e-commerce to employability like Freshersworld.com, Moontara Technovations etc. He is also an active mentor on the CIIE Mentor Edge Panel (IIM Ahmedabad), Start-up Village (Kochi) and Venture Labs (Standford University).
Angel Investing Made Easy, Shanti Mohan, BangaloreSanjay Jha
Angel Investing Made Easy
Workshop for angel investors; quick primer on angel investing, valuations, Term Sheets, SHA, trends, how syndicates and Lead Investor model works.
The workshop is aimed at acquainting HNIs and prospective investors with early stage risk investments in start-ups.
It is structured to impart an understanding on developing and maintaining a deal flow of startups, enabling discussions with practicing angel investors and learning through case studies which reflect the realities of angel investing in India, for HNIs and new angels in India.
Startup Event in Mumbai
StartupLanes is organizing the Mumbai Launch Event on 25th January 2020 at Maharashtra Chamber of Commerce, Mumbai. Please join us and avail all the opportunities. As this is not just a startup event it's a rare opportunity.
Learn whats needed to become an Angel Investor in today's world. Start your Start-up journey here!
About Author:
Manish is the co-founder of www.LetsVenture.com
Manish is a passionate mentor & business coach. He works with technology start-ups to help them get established and started-ups in helping them scale. As an angel investor he also invests in innovative start-ups.
Manish serves on the board of companies ranging from technology businesses, consumer businesses, e-commerce to employability like Freshersworld.com, Moontara Technovations etc. He is also an active mentor on the CIIE Mentor Edge Panel (IIM Ahmedabad), Start-up Village (Kochi) and Venture Labs (Standford University).
Angel Investing Made Easy, Shanti Mohan, BangaloreSanjay Jha
Angel Investing Made Easy
Workshop for angel investors; quick primer on angel investing, valuations, Term Sheets, SHA, trends, how syndicates and Lead Investor model works.
The workshop is aimed at acquainting HNIs and prospective investors with early stage risk investments in start-ups.
It is structured to impart an understanding on developing and maintaining a deal flow of startups, enabling discussions with practicing angel investors and learning through case studies which reflect the realities of angel investing in India, for HNIs and new angels in India.
Startup Event in Mumbai
StartupLanes is organizing the Mumbai Launch Event on 25th January 2020 at Maharashtra Chamber of Commerce, Mumbai. Please join us and avail all the opportunities. As this is not just a startup event it's a rare opportunity.
Seed funding and angel fundraising remains a art more than science. As someone who is heavily involved with startups and angel investors, here I have tried to answer the common question from entrepreneurs, startups and investors.
Angel investing is a great way to participate in the growing trend of entrepreneurship. Responsible investing is very important for the health of your portfolio and for your relationships with founders. Don't invest without understanding a few simple things. Equity investments are long term relationships. Investors must do their part to be good investment partners.
Basics on the startup process, raising capital, and thinking about valuation, especially for first-time entrepreneurs. Read my article at VentureBeat for details on this slide deck:
http://venturebeat.com/2016/09/05/startup-fundraising-101-revisited/
Have you ever considered becoming an Angel Investor? Wondered why people join angel groups as opposed to going it alone? Then this session is for you.
Join MLA Chair and Angel Investor Gerard Buckley as he leads a session that will answer the following:
What is Angel Investing?
Why would someone be an Angel Investor?
Who are Angel Investors?
What types of companies do Angels invest in?
What is Maple Leaf Angels and what are the benefits of joining?
These are the things I learned about Angel Investing. If you're thinking about investing in startups, either directly or via services like AngelList, my hope is that these tips can help you avoid some common mistakes.
Lets Get Real About Angel Investing - RVC Angel Capital Summit Keynote by Set...Seth Levine
Keynote at RVC Angel Capital Summit (Syndication 2.0) "Let's Get Real About Angel Investing" by Seth Levine, Managing Director of Foundry Group in Boulder, CO.
Impress the Angels: How to Make It Into "Startup Heaven"Palo Alto Software
What is an angel investor? How do they invest? What's the difference between an angel investor and a venture capitalist?
This presentation answers all these questions, and also includes tips from actual angel investors on what you can do to impress an angel.
Understand the VC math and valuation from the investors perspective. What is fair deal and a super deal for the investee and the investor shares Madhukar Sinha, India Quotient
Startup Financing 101: How to get from A to B with 0 or 100?Lubomila Jordanova
The presentation allows you to quickly understand the different financing options that exist out there and consider what is most appropriate for your company.
If you are a Greentech entrepreneur, the place to go of course is www.plana.earth!
If you're based in Pakistan, what the best way to raise local funding? With over 7 years of experience in running startups, Nash explains the best way forward.
Seed funding and angel fundraising remains a art more than science. As someone who is heavily involved with startups and angel investors, here I have tried to answer the common question from entrepreneurs, startups and investors.
Angel investing is a great way to participate in the growing trend of entrepreneurship. Responsible investing is very important for the health of your portfolio and for your relationships with founders. Don't invest without understanding a few simple things. Equity investments are long term relationships. Investors must do their part to be good investment partners.
Basics on the startup process, raising capital, and thinking about valuation, especially for first-time entrepreneurs. Read my article at VentureBeat for details on this slide deck:
http://venturebeat.com/2016/09/05/startup-fundraising-101-revisited/
Have you ever considered becoming an Angel Investor? Wondered why people join angel groups as opposed to going it alone? Then this session is for you.
Join MLA Chair and Angel Investor Gerard Buckley as he leads a session that will answer the following:
What is Angel Investing?
Why would someone be an Angel Investor?
Who are Angel Investors?
What types of companies do Angels invest in?
What is Maple Leaf Angels and what are the benefits of joining?
These are the things I learned about Angel Investing. If you're thinking about investing in startups, either directly or via services like AngelList, my hope is that these tips can help you avoid some common mistakes.
Lets Get Real About Angel Investing - RVC Angel Capital Summit Keynote by Set...Seth Levine
Keynote at RVC Angel Capital Summit (Syndication 2.0) "Let's Get Real About Angel Investing" by Seth Levine, Managing Director of Foundry Group in Boulder, CO.
Impress the Angels: How to Make It Into "Startup Heaven"Palo Alto Software
What is an angel investor? How do they invest? What's the difference between an angel investor and a venture capitalist?
This presentation answers all these questions, and also includes tips from actual angel investors on what you can do to impress an angel.
Understand the VC math and valuation from the investors perspective. What is fair deal and a super deal for the investee and the investor shares Madhukar Sinha, India Quotient
Startup Financing 101: How to get from A to B with 0 or 100?Lubomila Jordanova
The presentation allows you to quickly understand the different financing options that exist out there and consider what is most appropriate for your company.
If you are a Greentech entrepreneur, the place to go of course is www.plana.earth!
If you're based in Pakistan, what the best way to raise local funding? With over 7 years of experience in running startups, Nash explains the best way forward.
This is the deck that accompanied Dave Kochbeck's webinar on July 10, 2014.
In the webinar he guided founders of all stripes through the perfect pitch. Determine what are the most important touch-points to prepare for, what you should be aware of and what you should focus in on and highlight about your exciting company. From founders seeking pre-seed to late seed funding, this is the most important Webinar you should attend.
Women 2.0's Webinars are a new event to promote new networks amongst the entire technology ecosystem in innovative cities around the world. This event is open to those who work, start, and fund tech companies. Both women and men are invited to attend.
To view our next webinar go here: http://women2.com/webinars
To apply for PITCH go here (Deadline July 31, 2014): http://bit.ly/1ojgVtj
Women 2.0 Fall Conference in San Francisco (September 30 - October 1, 2014): http://sf.women2.com
3P PROGRAMME is dedicated to developing the Investment Education Training. Our objective is that- “Investment education will reach at bottom to bottom level with maximum utility”. log on at www.3pprogramme.com
Business Management 📊: We specialize in helping companies navigate the complex world of business with expertise in strategy, operations, and leadership. Our goal is to streamline processes, maximize efficiency, and drive success for your organization.
Silicon Catalyst presents Ryan Howard on Protecting Yourself as a Startup Fou...lpchao
Silicon Catalyst, the startup incubator and accelerator for semiconductor solutions, is proud to present serial entrepreneur and startup founder Ryan Howard for a seminar on how startup founders can protect themselves when building their company. The event was held at Wilson Sonsini in Palo Alto, California on September 21, 2016.
A seasoned entrepreneur, Ryan Howard shares some of the common pitfalls many founders face when ramping up a new company. He offers tips for how to mitigate these risks and pitfalls as well as best practices on building a cohesive team and board. Ryan also shares pointers on early stage funding and selecting corporate counsel.
Starting your fundraising journey? It can be a bitch, especially when you're in Singapore. How do you raise from angels? Institutional investors? Do you need a pitch deck? What tools are available to you?
I want to help answer those questions, and give folks who are beginning to fundraise some clarity on this understandably stressful process! It's by no means exhaustive, but it should help give newbies some direction!
2. Agenda
Confidential Information
1. Funding Landscape in India
2. Understanding Investment
3. What do Angel investors look for?
4. Developing your funding strategy
5. How can LetsVenture help?
4. Do I need to raise a seed round?
• Rapid growth is what makes a company a startup
• Take outside money if and only if it will help you grow faster
• Don’t raise money if,
• You don’t want to grow faster, or
• Outside money will not help you grow faster, or
• If you won’t be able to convince investors.
• Every instance you raise money, you dilute your holdings –
getting traction is not just about getting funding, it is your
negotiating tool
Takeaway:
“Do not raise money unless you want it and it
wants you.” --Paul Graham (YC)
Recommended reading:
Blog post by Paul Graham, Y-Combinator
founder
5. When should I raise funds?
• Fundraising is a full time job
• Do not get into fundraising if you think your business will suffer
• Pitching takes time
• Negotiation takes time
• Ideally, once you have at least Proof of Concept. Investors do
not favor startups at Ideation stage.
• Traction speaks loudest
• Get beta out (MVP)
• Show growth
• Show ability to execute
6. How much do I raise?
• Not too little, and not too much either
• Raise enough to reach a critical milestone
• Where you create a entry barrier for competition, and/or
• Can raise more money at better valuation
• Typically, seed round should last you 18-24 months with
conservative spending
• Probability of having unaccounted expenses is always 1, be sure
to double check your spending plan
Takeaway:
Fundraising is incremental process. You only
need enough to reach next critical milestone.
“Raise as much as you can. Without giving
away control, and without being insane.”
- March Andressen
“There are downsides to raising too much
money.” - March Andressen
Recommended reading:
Blog post by Shanti Mohan, founder @
LetsVenture
Blog post by Marc Andressen
9. What is the fundraising process like?
Takeaway:
If you wait until you are ready to be funded
then it is too late. Fundraising is a process
which can take 4-6 months.
Before you being asking for money, create
contacts and open communication channels.
Get a clear understanding of Term Sheets,
SHA and due diligence (DD) process.
Recommended reading:
Blog post by Sunil Rajaraman, Co-founder @
Scipted.com
Blog post by Shanti Mohan, founder @
LetsVenture
10. What financing terms should I know?
• Termsheet
• Equity or Convertible notes
• Liquidation Preference
• Anti Dilution Clause
• Option Pool
• Board composition
• Shareholding Agreement
• Founders Agreement
Remember termsheet is a non-binding document.
Takeaway:
Before you get into a room understand the
termsheet and SHA clearly.
Have a founders agreement in place to
ensure there no bad blood later.
Read every line of every document.
Ask if you have any doubt.
Recommended reading:
Standard Termsheet by Shanti Mohan,
founder @ LetsVenture
On importance of founders agreement from
Yourstory
11. What are different types of investors?
• Source of investment,
• Accelerators / Incubators
• Angle Investors
• Seed funds
• Investors can be classified into 7 types,
• Connectors,
• Product people,
• Tacticians and Builders,
• Smart Business People,
• Domain Expert,
• The Brand,
• The Filler (aka Dumb Money)
Takeaway:
Accelerators / Incubators may be a good
option before you approach angel investors
and seed funds.
You want to be in a position to be able to
choose investors.
Know your investors and be sure why you are
bringing them on-board.
Recommended reading:
Blog post by Elad Gill
12. What are investors looking for?
• Business (not an idea!)
• Nobody has monopoly on a idea
• The Team
• Can you execute? Can you adapt? Are you coachable? Easy to talk to?
• Risk Management Plan
• Key is to talk about the potential risks for your business and more importantly your action
plan towards mitigating them
• Clean Structure and Governance
• Clear and unambiguous record of in-house IP
• Simple holding/ownership structure
• Exit Plan
• Key is to talk about your intention to provide an exit to investors!
13. How do I make perfect deck?
Takeaway:
Investors may spend only 4-5 Min on your
deck. They are short on time, hold their
attention.
Follow of information is important, not just
headings.
Break your time into 5-15-30min - 5 min to
get attention for next 15 min, and which in
turn will keep their attention for 30 min.
Recommended reading:
Research Deck by DocSend team
10/20/30 Rule by Guy Kawasaki
14. Team strength is a big factor
Keep deck to 20 pages or fewer – investor attention span < 4min
How do I make perfect deck?
15. How do I choose an angel investor?
• Look for domain experts, tacticians, smart business people,
connectors and product people
• But most importantly, look for like minded investors who
understand you, your startup and what you are out to do
• Fewer investors are better than many, but not necessarily
• Your first objective should ideally be to look for a lead investor,
introductions matter as you reach out to more investors
• Do a reference check – speak to companies they have already
invested in
Takeaway:
Smart Money > Dumb Money
Dumb Money > No Money
Fundraising is not just about numbers, it is
also about the intangibles.
Many a times, intangibles matter a lot more
than expected.
Recommended reading:
Blog post by Ankit, Co-founder @ Adpushup
Adpushup used LetsVenture for its fundraise.
16. How do I connect with investors?
• Network
• Reach out to college alumni networks
• Check if there are angel investors in your alumni network
• Reach out to fellow entrepreneurs – introductions will save your
time and energy
• Offer value to people you meet – make meeting you worth their
time
• Leverage platforms like LetsVenture, LinkedIn to reach out to
individuals and groups you wouldn’t have access to
• Cold emails work – keep them simple, straight and exciting
Takeaway:
Nobody will marry you the first time they
meet you, if they do/did then know it is a
exception! It is true for money too.
Build relationships.
Follow-up on conversations. Send updates.
Investors may need time to decide if they
want to invest. Some may come back for
your next round.
Recommended reading:
Blog post by Elad Gill
Blog post by Steve Blank
17. How do I follow-up and schedule meetings?
• Create a target list of investors and break them up into 3 groups
• C – Most likely will not invest (start with them)
• B – Those you may or may not invest (fine tune your pitch)
• A – Dream list (meet them last, give killer pitch)
• Follow up politely but persistently
• Read between the lines – not everyone says No directly
• It is a funnel process – you may meet 30 and have follow-up with
10, and only 2 may invest.
• It is okay to get rejection, be persistent and patient.
Takeaway:
Fundraising is a funnel process. You will meet
100 but not everyone will commit to your
fundraise.
Approach your dream list only when you are
confident about your preparation.
Be polite, confident and persistent. Most of
all, be patient.
Recommended reading:
Blog post by Cheryl Yeoh, CEO MaGIC
18. How do I leverage LetsVenture?
• Complete your profile
• Focus on,
• Twitter pitch (140 characters)
• Team
• Traction
• Startup Video
• Investor Deck
• Timeline
• Follow investors – angels and institutions
• Reach out to investors with crisp messages via platform
• Request endorsements and recommendations
19. How can LetsVenture help?
• Office Hours
• Personalized 30 min sessions over skype or in-person
• Help you create strategy to approach investors
• C2C
• Closing documentation
• Faster process to get money-in-the-bank
• Jobs posting
• PR and outreach
20. What is Featured startup?
• LV run deal – active participation of 1 member from LV team
• Hard curation of startup
• 2% of amount syndicated on the platform (part equity, part cash)
21. Thank you
In case you have any query, please write to startups@letsventure.com
Editor's Notes
LV Insights – No ideation company
Traction is very important
Divide your spend and revenues into 8 quarters, and find the lowest negative and add a 25% to this, to account for margin errors. This will help you determine how much you should raise in your angel round.
LV Insights
Average round size 2 Cr.
Average dilution at 18%
Largest round size 6.5Cr.