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.
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).
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.
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.
Show Me The Money - The Ying and Yang of Entrepreneurial FinanceJohn Landry
Presentation of 12-time CTO/Entrepreneur and Entrepreneur-in-Residence John Landry (https://www.linkedin.com/in/leaddogvc) to Babson College Alumni and Students on the ins-and-outs of financing (or bootstrapping!) entrepreneurial ventures.
Created: 4/17/19 - Landry Babson Speaker Series #4
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).
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.
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.
Show Me The Money - The Ying and Yang of Entrepreneurial FinanceJohn Landry
Presentation of 12-time CTO/Entrepreneur and Entrepreneur-in-Residence John Landry (https://www.linkedin.com/in/leaddogvc) to Babson College Alumni and Students on the ins-and-outs of financing (or bootstrapping!) entrepreneurial ventures.
Created: 4/17/19 - Landry Babson Speaker Series #4
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.
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.
The final keynote on how bad advice finds it way into startups, the damage it does and what we can do about it. For more information, I've written up the Halo Effect at http://www.saintsal.com/2013/05/bad-advice-halo-effect/
Venture Capital 101 - I'm a VC, Who Are You? Paula Marttila
"Venture Capital 101 - I'm a VC, Who Are You?" walks you through the essentials of venture capital, early stage funding alternatives, and the difference between good and bad VC to an audience new to fundraising. I first gave this talk to Interactive Communication students at Berghs School of Communications in Stockholm, Sweden, March 2013.
March 2016: Updated version to reflect the changes and trends in venture capital markets incl. additional pitch advice, recommended reading, and founder resources.
Venture & Angel Investments for Startups - 2021Crowd Product
The special event series will cover the following:
Raising First Cheque Seed Funding from VC
Why Lead Investor is Important ? How to Find One ?
20 Things Not To Do By A Startup Founder
The Angels 8Q: Eight Questions Investors & Startups Should Ask to SucceedJoseph de Leon
This started as a personal guide so I could be a better Angel Investor.
It developed into a Playshop that was first conducted at the Global Seedstars Summit [Lausanne, Switzerland 2019].
Rather than answers, I hope this helps you find your own questions.
A preview of Pitching Hacks (How to pitch investors).
We’ve founded companies like Epinions; helped start companies that are backed by Sequoia, Benchmark, and Kleiner Perkins; raised $100M or so for startups; and invested another $20M in about 12 companies. This book summarizes the lessons we've learned along the way.
Buy the whole book at http://venturehacks.com/pitching
Drilling down into business fundamentals, founders and fit, here are some effective questions Angels ask to see which startups stand-out.
An updated edition with expanded content prepared for https://www.sandboxph.org/
cultureRush is a social media service that allow members to create a network of community based on your culture. Members will have access to programs such as 'Mentoring' program, cultureDate, cultureJobs, cultureMedia, cultureSchool, cultureMarket, and many more to follow.
cultureRush is backed by empathy, philanthropy, common experience and background that can translate into act of "kindness of strangers" and "commercial activity".
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.
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.
The final keynote on how bad advice finds it way into startups, the damage it does and what we can do about it. For more information, I've written up the Halo Effect at http://www.saintsal.com/2013/05/bad-advice-halo-effect/
Venture Capital 101 - I'm a VC, Who Are You? Paula Marttila
"Venture Capital 101 - I'm a VC, Who Are You?" walks you through the essentials of venture capital, early stage funding alternatives, and the difference between good and bad VC to an audience new to fundraising. I first gave this talk to Interactive Communication students at Berghs School of Communications in Stockholm, Sweden, March 2013.
March 2016: Updated version to reflect the changes and trends in venture capital markets incl. additional pitch advice, recommended reading, and founder resources.
Venture & Angel Investments for Startups - 2021Crowd Product
The special event series will cover the following:
Raising First Cheque Seed Funding from VC
Why Lead Investor is Important ? How to Find One ?
20 Things Not To Do By A Startup Founder
The Angels 8Q: Eight Questions Investors & Startups Should Ask to SucceedJoseph de Leon
This started as a personal guide so I could be a better Angel Investor.
It developed into a Playshop that was first conducted at the Global Seedstars Summit [Lausanne, Switzerland 2019].
Rather than answers, I hope this helps you find your own questions.
A preview of Pitching Hacks (How to pitch investors).
We’ve founded companies like Epinions; helped start companies that are backed by Sequoia, Benchmark, and Kleiner Perkins; raised $100M or so for startups; and invested another $20M in about 12 companies. This book summarizes the lessons we've learned along the way.
Buy the whole book at http://venturehacks.com/pitching
Drilling down into business fundamentals, founders and fit, here are some effective questions Angels ask to see which startups stand-out.
An updated edition with expanded content prepared for https://www.sandboxph.org/
cultureRush is a social media service that allow members to create a network of community based on your culture. Members will have access to programs such as 'Mentoring' program, cultureDate, cultureJobs, cultureMedia, cultureSchool, cultureMarket, and many more to follow.
cultureRush is backed by empathy, philanthropy, common experience and background that can translate into act of "kindness of strangers" and "commercial activity".
Best Practices for Deploying Enterprise Applications on UNIXNoel McKeown
Gain some insight to a UNIX based operating system and the types of tasks a build team or vendors perform. How to prepare a UNIX server for typical enterprise deployments.
The best practices applied to a UNIX platform in a telco environment. Some hints, tips, troubleshooting and practical knowledge.
The Best Startup Investor Pitch Deck & How to Present to Angels & Venture Cap...J. Skyler Fernandes
Take the online video course on Udemy:
https://www.udemy.com/course/the-best-startup-investor-pitch-deck/?referralCode=A5ED0FBD65120A93A16E
3.5+hrs of video content, walking step by step each part of the pitch, with personal VC stories, examples, and advice.
The "Best" Startup Investor Pitch Deck is an aggregation of some of the best pitch decks and wisdom from some of the top angels, VCs, and entrepreneurs including my own person insight/experience. The slide deck includes a template for entrepreneurs to use to present to investors, with details on what should be addressed on each slide. There are also additional slides on how best to pitch to investors effectively, how to design and format slides, and what to do before the pitch.
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!
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
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.
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/
Beginner's Guide: How to raise Seed and Series A Funding for Your Tech StartupsRakesh Soni
This is a short beginners' guide to learn about startup fundraising particularly Seed and Series A round.
CONTENT:
Introduction
Startup Funding 101:
What is funding and why do you need it?
Types of funding
When to raise and how much to raise
Understanding exit
Key players in fundraising
What matters to founders?
Understanding dilution
How to determine the valuation
Understanding controlling terms
How do VCs work?
Seed and Series A Funding:
Are you ready for funding?
Preparation
How to raise: processes, tips & tricks
Recommended Reading
Q&A
Investors historically sit through pitches and evaluate early stage startups on three primary metrics: 1) great looking product demos, 2) compelling presentations, and 3) a strong team. Steve Blank, the Godfather of the Lean Startup movement said in his Customer Development Manifesto: “There’s no formal way for an investor to assess project maturity or quantify risks. Other than measuring engineering progress, there’s no standard language to communicate progress.”
What has been missing is a common language to communicate objectives and data that investors and entrepreneurs can use to communicate startup readiness.
Fortunately, the principles developed in the Lean Startup movement can be utilized to help entrepreneurs assess their Investor Readiness Level in a way that allows them to demonstrate “evidence” of their readiness. In this session, Max Green and Heath Naquin, both of the IC2 Institute, will share this new method for entrepreneurs to gauge their own investor readiness using the principles of Steve Blank's Investment Readiness Level and LeanLaunchpad.
Entrepreneurs attending this session will learn a valuable approach helping their start-up team prove their competence and validate their ideas by showing investors “evidence” that there’s a repeatable and scalable business model.
Heath Naquin serves as Executive Director for the SW I-Corps Node at The University of Texas at Austin. He also serves as the Managing Director for a multi-university NSF Industry University Cooperative Research Center (I/UCRC) the Center for Next Generation Photovoltaics. Heath was a founding member of three different start-up business initiatives across sectors. He has helped companies raise more than $30 Million in funding from private and government sources.
Heath actively works on international commercialization initiatives and efforts focusing on industry collaboration, new project development and deployment along with building linkages between industry, government, academia and the venture capital community. Heath has worked in more than 20 countries on international commercialization and entrepreneurship initiatives in countries such as Colombia, Jordan, Iraq, Korea, Mexico, Portugal, Armenia, and Turkey. Heath has extensive experience with the NSF, EPA and NIH SBIR programs as an active commercial reviewer for many years. Heath also currently serves as Faculty for the Concordia University Executive MBA program.
WeWork provides small businesses, startups, and freelancers with beautiful workspace, inspiring community, and meaningful services. With weekly events, personalized support, flexibility, and access to thousands of like-minded entrepreneurs around the world - WeWork is the perfect place to grow your business in 2015.
The WeWork Congress location sits in the heart of downtown Austin at 6th St. and Congress Ave. To learn more about joining the community, email joinus@wework.com or call 855.593.9675.
Matthew Stotts’s intimate knowledge of venture capital firms and the way in which their partnerships take form and how their individual partners perform, provides founders with a wholly unique advantage in the capital formation process. He maps the dynamic investing landscape of today to a startup’s future potential and current business metrics, identifying the critical factors that accelerate fundraising while mitigating the risks of over communication or strategic errors that set back founders and close off optimal paths to growth.
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
2. 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
3. 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
Takeaway:
Beta > PoC
PoC > Ideation
Fundraising can impact your startup’s
growth. Do not start unless you are
completely ready.
Recommended reading:
Blog post by Marker Davis, CEO, Kohort & VC
Running Lean by Ash Maurya
4. 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
6. Milestones, Valuations and Raises?
Milestone / Stages Age Revenue Raise Amount From Whom
1 Venture launched 0 – 0.5 0 5 – 25 L Self, friends and family
2 Beta Product launched
B2C: Product used by real customer, few paying
customers
B2B: Good customer pipeline, 1-2 customers in trial
0.5 – 1 yr Small
amount
25L – 75L Self, friends and family, Individual
Angels, Accelerators
3 Stable version
Regular customer growth
1 – 1.5 yr 10 – 15 L per
year
50 L –
1.5 Cr
Self, Accelerators, Seed Funds,
Individual Angels
4 Product market fit found
Strong and Consistent customer growth
Clear product and revenue for next 2-3 yrs
1 – 2 yr 20 – 50 L per
year
1 Cr – 4 Cr Individual Angels, Seed Funds, Few
Venture firms
5 Business model fit found
Clear growth path for next 3-5 yrs
Consistent growth in paying customers
Potentially breakeven
1.5 – 3 yr 2 – 5 Cr per
year
3 Cr –
20 Cr
Venture Funds
7. What is dilution over lifecycle?
Recommended reading:
Funding Fundamental by Manish Singhal
Year 0 1 3 5
Start Initial
Hires
Seed
Round
Create
Pool
VC
Round
Pool
Refresh
2nd VC
round
Founders 100% 90% 68.4% 59.9% 44.9% 43.2% 32.4%
Seed Investors 0.0% 0.0% 24.0% 21.0% 15.8% 15.2% 11.4%
Initial VC Investors 0.0% 0.0% 0.0% 0.0% 25.0% 24.1% 18.1%
Later VC Investors 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 25.0%
Early Employees + Advisors 0.0% 10.0% 7.6% 6.7% 5.0% 4.8% 3.6%
Employee Pool 0.0% 0.0% 0.0% 12.5% 9.4% 13.0% 9.8%
Total 100% 100% 100% 100% 100% 100% 100%
8. 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
9. Angels or VCs?
• Institutional Money beats Individual Money, unless
• VC is not adding any value apart from money, or
• A pro-active Angel is a ready to get on-board
• If a VC invests in your seed round but doesn’t follow through in
Series A – it may send negative signal
• Not every VC likes to participate in another VC in Series A,
potential signaling issues
• There are sector specific funds – here VCs add a lot more value;
if you are in niche market then look out for them
Takeaway:
Super Angels maybe a better choice than a
VC firm.
Take on a VC firm if they are adding more
value than just money. Typically, angel
investors with their domain experience
maybe better choice.
In case you do opt for a VC then have
strategy in place to handle signalling issues.
Recommended reading:
Yet another blog post by Chris Dixon
10. How do I choose a 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.
11. 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
12. 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
13. 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
14. 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
15. 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!
16. What do investors ask?
• Everything.
• Prepare, prepare and prepare
• In case you do not have a answer – be honest and be proactive
in getting back with answers and insights.
Takeaway:
Expect lots of questions.
Prepare and keep fine tuning your answers.
Keep it simple and straight.
Questions will also help you ascertain what
sort of investor a person is (smart money or
dumb money).
Recommended reading:
Blog post by Elad Gill, with contribution from
Satya Patel
17. How do I make perfect deck?
• Follow Guy Kawasaki’s 10/20/30 rule
• 10 slides
• 20 minutes
• 30 point font
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
18. How do I run investor meeting?
• Prepare with your sponsor, you are a team as you enter that
room – be in sync with your sponsor and co-founders
• Setout the mandate before you begin
• Nail them in opening minutes
• Pitch your product and vision – execution > team > idea
• Pitch your ability to build
• Before you end the meeting, setout timeframe for follow-up and
next meeting
Takeaway:
Attention span drops with time.
Keep it simple, straight and precise.
Investors want to see if you can deliver, that
is execute a idea.
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:
Blog post by Aaref Hilaly, Sequoia Captial
Blog post by Chris Dixon, a16z
19. Do I need a lawyer?
• Lawyer should be hired if you are not confident in your
understanding of documentation
• Go with a experience startup friendly firm
• Read every word of every legal document
• Use standardized documents when possible
• Do not send lawyers to negotiate!
• Ask them questions! Lots of questions
Takeaway:
Lawyers are there to ensure what is
discussed is translated on paper, and to
make you aware of potential pitfalls.
Any lawyer will not do. Work with someone
who has startup experience.
Recommended reading:
Yet another blog post by Elad Gill
20. How do I negotiate on valuation?
• It is not just about pre-money and post-money valuations
• It is also about terms and conditions set out by investors
• Do not hesitate to ask investors to match the best termsheet
you have received
• Traction is your biggest trump card, it favors you and only you
• Share data, get market information where possible – but leave
ego at the door
• Understand their priorities and that one metric that matters to
everyone, and then chase that number
Takeaway:
Terms and conditions are very important, not
just the valuation.
Traction is your best friend
If X gets $10M does mean you will get it too,
be informed but leave ego at the door
Recommended reading:
Lets revisit this blog post by Sunil Rajaraman,
CEO of Scripted
21. How do I get money in bank?
• Termsheet is not legally binding document
• Be forthcoming with information wherever asked
• Commitment to closure is a tedious process – work with service
providers experienced in working with startups
• Due diligence takes time – be sure you understand the timeline
and have factored it in
• Companies take 4-12 weeks to get money in bank – talk to
fellow funded entrepreneurs to understand process and avoid
pitfalls
Takeaway:
Job is not done until money hits the bank.
Don’t think about PR until you receive the
funds.
Due diligence is time consuming process but
one can save time by working with
experienced service providers / teams.
Recommended reading:
TechCrunch article by Anthemos, CEO of
Zumper
22. How do I work with my investors?
• You have money in bank, and you are already on your way to
next fundraise
• Second seed round, or
• Series A
• Update your investors on weekly/monthly/quarterly basis – be
proactive and be available
• Spend time with them, get to know them better - relationships
are important
• Ask help! if needed
Takeaway:
You have spent time to find investors. Now
spend time to strengthen these
relationships.
Put your investors to work for you –
everyone has a interest in your growth.
Be proactive with updates.
Be humble, confident and patient.
Recommended reading:
Yet another blog post by Elad Gill
(Ps: don’t you just love his posts!)
23. How do I create a Board?
• Keep it small
• Choose wisely, you don’t want to rush on this
• Seek experience to supplement your own
Takeaway:
Like minded board members who
supplement your skills and do not shy away
from pointing out faults while supporting you
on course correction.
Recommended reading:
Yet another blog post by Elad Gill along with
yet another blog post by Chris Dixon
(Ps: promise these are last two links)
24. Thank you
In case you have a query, please write to startups@letsventure.com