This document discusses escaping the "bootstrap trap" that many business owners find themselves in, where they pour their own resources into a business that is not yet profitable. It argues that raising money from investors is a better solution. However, many business owners have misconceptions about investors that prevent them from seeking funding. The document aims to address these misconceptions by showing that there is a diverse range of investors beyond just venture capitalists, including individual "accredited investors" and "non-professional investors". These alternative investors may be better aligned with business owners' values and willing to offer affordable rates of return around 2-6%. It promotes finding the "right" investors that fit a business's goals and offering them a compelling investment opportunity

1. Raise Capital on Your
Own Terms and Escape
the Bootstrap Trap

2. 2007: Me – a CEO!!!

5. The turning point

6. I love raising money from investors

7. I raised over $1.3 million
$50,000
2012
$400,000
$700,000
2016-17
$154,000
2014

8. Is this you?
•You’d love to spend money on something that would make
your business more successful but you have no idea how to
pay for it
•Your business hasn’t broken even yet and you keep pouring
your own personal resources into it
•You have a vision for growing your business so that it has a
bigger impact but can’t do it with your current revenues
•Your business is doing okay but it’s hit or miss whether you get
paid
•You find yourself doing things in your business that are not your
unique genius

9. If yes, you’re in the bootstrap trap!
What is bootstrapping?

10. Why is bootstrapping a trap?

11. One of the top reasons for business
failure . . .
“If I could just get a few more
customers . . .”

12. Bootstrapping is a major
problem.
Raising money from investors
is the solution.
BUT, how?!?!?

13. I don’t want to lose control.
I’ve hear that’s “expensive money.”
I’ve heard investors don’t invest in women and people of
color.
Who would invest in my business?
I’m not ready.
What if I lose my investors’ money?

14. Raised about $600,000 so far
Nonvoting preferred stock
Based in Berkeley, CA

15. • Raised $350,000
• Nonvoting
redeemable
preferred stock
• Based in Boston

16. Spotlight: Girls, Oakland, CA
Raised about $500,000 – equity and debt

17. Recompose (Seattle) – Raised about
$300,000 so far – nonvoting preferred stock
Business is currently illegal!

18. Raised $1.1 million
Unsecured notes
paying 2.5% annual
interest

19. How?

20. First, let’s look at your beliefs
about investors

21. Angel Investors

22. Venture Capitalists

24. Accredited Investor
• At least $1 million in net worth excluding primary residence or
• $200,000 in annual income
• $5 million for entities

25. Have you considered
•The majority of the residents of the US
are investors – about 125 million people!
•Investors are incredibly diverse

26. The 100%

27. Types of Investors
Professional
investors
0.3%
Non-
professional
investors
99.7%

28. investors are
frustrated and anxious!

29. Most investment opportunities:
• Trustworthy, high-integrity leadership?
• Risky
• Stock market – big correction expected!
• Real estate booms and busts
• Lack of transparency
• Lack of values alignment
• Fees
• Not fun

30. What is a “market rate” return?
VC: The average VC fund breaks even or
loses money
Stock market: Dow Jones Industrial Average
annual return for the last ten years: 3.228%

31. Creative capital raisers
EDFC: 2%
Pioneer Valley Grows: 2%
People’s Community Market: 3%
Farm Fresh to You: 2.7% (for cash)
Wellspring: 3%
Maker’s Common: 3% (+1% store credit)
Nia House: 3.7%-4.2% (depending on term)
CERO: 4% (target)
Equal Exchange: 5% (target)
Our Harvest: 5% (target)
Go Girls Camp: 6% (target)

32. The right investors
are looking for you!

33. The Book
1. Goals and Values
2. Ideal Investors
3. What to Offer
4. Compliance Strategy
5. Enrollment
6. Address Obstacles

34. JennyKassan.com/gift
Escape the Bootstrap Trap
Training Guide and Checklist