QBO WORQshop: Are you ready to fundraise?
•
0 likes•354 views
Instead of asking "Are you ready to fundraise", perhaps the better question is.. "Are you ready to grow?" Learn about the basics of fundraising and whether you are ready. Use the free tools and frameworks Lean Canvas Plus (aka Fat Canvas) https://bit.ly/jdlfatcanvas Fingerprint4Success Human Analytics: https://bit.ly/censusf4s
Recommended
More Related Content
What's hot
What's hot (20)
Similar to QBO WORQshop: Are you ready to fundraise?
Similar to QBO WORQshop: Are you ready to fundraise? (20)
More from Joseph de Leon
More from Joseph de Leon (8)
Recently uploaded
Recently uploaded (20)
QBO WORQshop: Are you ready to fundraise?
- 1. Are you ready to fundraise? 15 February 2022 Image: Michael Waraksa
- 2. DANGEROUS IDEAS AHEAD UNCOMMON COURAGE & COMMON SENSE REQUIRED USE AT YOUR OWN RISK
- 4. Raise Money ➔ Make Money
- 5. Without path to profitability, you’re just burning cash… Image: https://medium.datadriveninvestor.com/fundamentals-in-five-minutes-burn-rate-f4d765d5cd39
- 7. Do You Really Need to Raise? Source: NfX Or first, fix the fundamentals
- 8. Beyond cash, what do you need to succeed? If all you need is cash, then you might not be ready to raise
- 9. Explore non-dilutive options Learn more at: https://bit.ly/SeedStarsNonDilutedCapital • Gifts & Grants • Debt (On & Off- Balance Sheet) • Revenue-Based Financing
- 10. Are you ready to grow Are you ready to raise might be the wrong question…
- 11. Metrics How well does the rubber meettheroad? Financial • Revenue& Profitability • CAC/LTV • Burn Rate&CapTable Potential • Traction - Customers & Community (+NPS) • Factions- Partnerships • Attractions- Tangible, Technical, Intellectual Market Is theproblem worth solving? Size- Is the opportunityworthwhile? Appeal- Is it within reach? Growing? Moment- Why Now? Math Is the price right? Amount- Is it enough? Too much? Target- How far will the funds go? Runway- What if they don’t get it? Match Areyou asking the right people? Fit- Do you qualify their criteria? FOMO- Who else is coming in? Value-Add- Are we good for each other? Message Areyour invitations impactful? Narrative- What’s your story? Narrator-Who’s telling it? Numbers- Do the facts match? Model Have you built a strategicmoat? Product-MarketFit- Will it sell? UnitEconomics- Will it make money? BusinessStructure-Can they scale? Management Are you the bestpeople to do it? Insight- Do you see something special? Character-Do we like and trust you? Execution- Any proof you can deliver? Fast-track Fund Raising JdL QBO7Ms of Fundraising jdl@gravitasprime.com
- 12. Take time to make your pitch tight Source: DocSendStartupIndex 92 we want to know Why Now right now seconds Ave.time to reject a pitch
- 13. Start-ups need to successfully make 5 pivotal transitions to achieve scale Opportunistic ➔ Strategic 1 Project ➔ Product 2 People ➔ Process 3 Ownership ➔ Partnership 4 Relationship ➔ Brand 5 Source: Adapted from Built to Scale: Taking Middle-Market Companiesto the Next Level, Sawney (Northwestern University, 2014) Situational Objectives dictate Strategic Imperatives Fundraising fast-tracks 5 Pivots & Investor Expectations Evolve Over Time Whereyouare dictateswhatyou needto do
- 14. Find a market worth winning Opportunistic ➔ Strategic 1 Friends Family & Fools = FFF If you can’t convince your mom… Valley of Death To make it through do you have a particular set of skills, unique access, deep insight or deep pockets?
- 15. Is the opportunity worth the effort? How big is it now? How big will it be? How much did you get first? How much to win the rest?
- 16. Forecasting is fiction In the beginning, bets are made on potential & people. Butfactsare fundamental Over time, investors expect your execution to evidence of success
- 17. 2.5% Innovators 13.5% Early Adopters 34% Early Majority 16% Laggards 34% Late Majority Build Foundation Principles | Process Push Expansion Penetration | Innovation Reframe Definitions Category | Target Audience The Strategic Consumer Adoption Curve is the map of your market share Source: Adapted from Roger’s Technology Adoption Curve Whereis yourbusiness? Whereisthe category?
- 18. 2.5% Innovators 13.5% Early Adopters 34% Early Majority 16% Laggards 34% Late Majority Build Foundation Principles | Process Push Expansion Penetration | Innovation Reframe Definitions Category | Target Audience The Strategic Consumer Adoption Curve is the map of your market share Source: Adapted from Roger’s Technology Adoption Curve Whereis yourbusiness? Whereisthe category? Thefarther fromMajority, thenyouneed moremoney
- 19. Go To Market solutions for sales that scale Are you first to market? Are you first to product- market fit? Project ➔ Product 2
- 20. 0 uploaders for the first 5 days $20 Even after women were offered money on Craigslist to upload 500 = = Hours worth of videos uploade every minute (Mar 2021) = Source: https://medium.com/cornertechandmarketing/the-story-of-youtube-s-history-as-a-dating-site-164dfae475a4/ first launched as a dating website 2005 ➔ 2006 Google acquisition for $1.6 billion Today $28.8 billion Ad Revenue (Gross) for 2021 =
- 21. Lean Canvas Plus β aka FAT CANVAS Project Name Date Version Cost Structure Customer Acquisition costs Distribution costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Problem Top 3 Problems Existing Alternatives Solution Top 3 Features Key Metrics Key activities you measure Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention High Level Concept X for Y Analogy (Familiar + Twist) Unfair Advantage What do you have that can’t be easily copied or bought Channels Path to customers Customer Segments Target customers Early Adopters Characteristics of your ideal customers/ clients PRODUCT MARKET Source: Adapted by Joseph de Leon (jdl@gravitasprime.com) Ecosystem Social/Cultural Are you riding a wave or a fad? Competitors/ Influencers Who else is making the market grow? Legal/ Regulatory Will it be stopped or supported? MOMENT & MOMENTUM
- 22. Start-up Scale-up Stock Market People ➔ Process 3 Ownership➔ Partnership 4 Relationship➔ Brand 5 Are you a rocket ship or a pile of sh*t?
- 23. By the numbers, Solopreneur vs Founding Teams Source: DocSendStartupIndex Source: Super Notes on Super Founders. This article contains some notes on the… | by Eliezer Steinbock | HackerNoon.com | Medium “There’s a common misconception that being a solo founder is bad. However, almost 20% of unicorns were founded by solo founders. Throw out the rulebook.”
- 24. Doyou wanttotry Canva’s secretweapon? Start with your own free assessment, then share with your friends & teams - https://bit.ly/censusf4s
- 25. Value Proposition Business Model Ecosystem Adapted from Ann Miura-Ko https://tinyurl.com/minimumviablecompany Is it worth paying for? Is it truly profitable? Does it play well with others? Beyond Minimum Viable Product build a Minimum Viable Company
- 28. How much is enough Running out of cash could kill you but raising too much, too early might be worse…
- 29. Time Target (Cap) Table The right raise is based on… 18-24 months of runway Reach next milestones 10-25% of equity
- 30. Source: NfX Start-ups will need to continually balance Growth & Profitability Math for Rule of 40 https://www.linkedin.com/pulse/why-startups-burn- before-earn-updated-sanjay-mehta/ Growth = 100% BurnRate of 60% Growth = 50% Burn Rate of 10% Growth = 40% Break Even Growth = 20% 20% profit margins Growth = 0% 40% profit margins Rule of 40 (SaaS benchmark for post $1mn ARR): YOY Revenue Growth % + EBITDA Profitability = 40%
- 31. How much is it worth Is valuation just a fancy guessing game..
- 32. You want a premium… Sell Side Entrepreneur SELL HIGH
- 33. … they want a bargain Buy Side Enterprise SELL HIGH BUY LOW Sell Side Entrepreneur
- 34. How can both sides of a deal be happy? SELL HIGH BUY LOW = Buy Side Enterprise Sell Side Entrepreneur
- 35. Get everyone on the same side… Where the Entrepreneurs Started Where the Enterprise Can Grow Buy Side Enterprise Sell Side Entrepreneur SELL HIGH BUY LOW = … break down deal breakers before they kill your deal
- 36. By the Numbers Berkus Approach Add Premium based on Success Factors Sound Idea | Prototype | Quality Mgt | Strat Rel’ns | Sales Adapted from Corporate Finance Institute Cost-To-Duplicate ∑ Expenses @ Fair Market Value How much would it cost to get to where you are now? Mkt Multiple/ Future Multiple Comps to recent deals/ ROI Projections How much is everyone else paying? Risk Factor Summation/ DCF ROI +/- Risk Factors or Discount Rate Even more conservative estimates just in case The Human Element
- 37. How much will your startup be worth? JdL BackOf the EnvelopeMath : Based on where the revenueis now, if targets are attainablein one year then it’s a good deal because the future value is already justifiable. Check if it’s too good to be true. Furtherdiscussion& analysis are anchoredon the assumptionsof what it will take to reach their targets. If the valuation is exponentiallylarger than the target in this round, compute the turn-aroundperiod. Target Valuation/ Target Profit Margin = Revenue Target Revenue Target / ARPU = Target Number of Users Ask/ CAC (Ask x % on Mktg & Sales/ CAC) = Acquirable Users Check Unit Economics (CUE)
- 38. Listen and Be open
- 40. MAIN.PH MANILA ANGEL INVESTORS NETWORK The Philippines’ most active investor network • Investment, Mentorship & Market Access • Focused on Post MVP, Pre-Seed to Seed start-ups • High-Growth, High-Impact & Sector Agnostic + Special programs & funding for women led startups Let’s build a world-class startup ecosystem together Send your decksto<pitch@main.ph> Are you ready to grow? Portfolio Highlights
- 41. Joseph de Leon Joseph de Leon is the Director for Venture Strategy at Gravitas Prime. He leads M&A advisory, capital raises and cross-border expansion for clients in Asia. JdL is a founding member of Manila Angel Investors Network (MAIN), has the privilege of being the Philippines Ambassador for Seedstars SA and the Philippines' first Amazon AWS Scout. He is a mentor for institutionssuch as the Founders Institute, German Accelerator, IIDF, Impact Hub, UNDP for start-ups across Asia, the Americas & Europe. Joseph is a certified Six Sigma Blackbelt, MBA from Emory University, has pursued further studies in Finance at UP Diliman, and he earned his BS Legal Management from Ateneo de Manila University.
- 42. Discoverhowwecanhelptakeyour business tothenextlevel… Thankyou Mergers &Acquisitions | CapitalRaising| Cross-Border Expansion Joseph deLeon | jdl@gravitasprime.com | www.gravitasprime.com