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Startup Fundraising 101 
Startups on Onevest have raised $80 million+ with our help 
September 25
Meet Today’s Host 
Shahab Kaviani 
Co-Founder | CMO, Onevest 
• 10+ years as a startup 
founder 
• Previously co-founded 
CoFoundersLab and 
HyperOffice (exited) 
• Raised over $800k – 
including a portion via equity 
crowdfunding
Agenda 
1. Fundraising Sources 
2. Key Terminology 
1. Pros/Cons of taking outside investment 
2. How do you decide how much $ to raise? 
3. What do investors look for? 
6. The JOBS Act & Equity Crowdfunding
Fundraising 
Sources 
Friends 
and 
Family 
Accelerators 
VC 
(Venture Capital) 
Bootstrapping 
Crowdfunding 
Angels Customers
Where do entrepreneurs get money? 
Largest sources of capital for young companies in order: 
Founder Savings 
Credit Cards 
Kauffman Sketchbook – “Money Game” by Paul Kedrosky, Senior Fellow Kauffman Foundation: 
https://www.youtube.com/watch?v=U470xXKfDyE 
Family & Friends 
Banks 
VC, Angels, Etc.
Key Terminology 
Sources: Investopedia.com, http://www.investopedia.com/terms 
FT.com, http://lexicon.ft.com/ 
Term Sheet 
Cap Table Valuation 
Convertible Note Dilution 
Crowdfunding 
Equity vs. Donation 
Common vs. 
Preferred Stock
Have you ever tried raising $ for a startup? 
YES or NO
How Long Does it Take to Raise $? 
It depends, but it’s usually a long process. 
Source: http://danielodio.com/daniels-rule-of-10-angel-intros-1mm-raise-infographic
Should I Take Outside Investment? 
Nothing beats cash flow; if you don’t need $, don’t take it 
PROS CONS 
Hire faster 
Launch faster 
Experiment with more 
things (marketing, 
partnerships, etc.) 
Investors support as 
advisor(s) 
Give up equity/ownership 
Dilute yourself and your 
shareholders 
More people to answer to: 
direction of company no 
longer only up to you
How do I decide how much $ to raise? 
*Source: http://www.techrepublic.com/article/the-dark-side-of-venture-capital-five-things-startups-need-to-know/ 
How much $ do you 
need to hit certain 
benchmarks 
Two good methods 
If no benchmark, good rule 
of thumb: take amount it 
takes to sustain operations 
for next 18 months + 25- 
50% for added flexibility
What do investors look for? 
TEAM 
IDEA 
TRACTION 
LARGE MARKET 
OPPORTUNITY 
COMPETITION
Pitch Deck – What to Include 
Team 
Overview 
High-level 
overview of your 
company 
Problem 
How your 
startup solves 
the problem 
Market Size Competition Traction 
Financial 
Projections 
The ASK 
How much are 
you raising? 
How will you 
use the $ 
FINANCIA STATS INTRO 
L
You raised money...Now what? 
Communicate with and 
update your investors 
Focus on milestones 
Celebrate! 
(and then get back to work!)
Are you familiar with the JOBS act? 
YES or NO
JOBS Act = New Opportunities 
NOW FORTHCOMING 
JOBS Act Title II 
Tell everyone you’re fundraising 
TIME 
JOBS Act Title III 
Fundraise from everyone 
(not just accredited investors)
Pros of Equity Crowdfunding 
Promote your company to a larger pool of investors 
outside your personal network, saving time and effort 
Smaller investment minimums allow more investors 
to participate 
More investors = More strategic advisors with 
knowledge of/experience in your space 
1 
2 
3

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Startup Fundraising 101

  • 1. Startup Fundraising 101 Startups on Onevest have raised $80 million+ with our help September 25
  • 2. Meet Today’s Host Shahab Kaviani Co-Founder | CMO, Onevest • 10+ years as a startup founder • Previously co-founded CoFoundersLab and HyperOffice (exited) • Raised over $800k – including a portion via equity crowdfunding
  • 3. Agenda 1. Fundraising Sources 2. Key Terminology 1. Pros/Cons of taking outside investment 2. How do you decide how much $ to raise? 3. What do investors look for? 6. The JOBS Act & Equity Crowdfunding
  • 4. Fundraising Sources Friends and Family Accelerators VC (Venture Capital) Bootstrapping Crowdfunding Angels Customers
  • 5. Where do entrepreneurs get money? Largest sources of capital for young companies in order: Founder Savings Credit Cards Kauffman Sketchbook – “Money Game” by Paul Kedrosky, Senior Fellow Kauffman Foundation: https://www.youtube.com/watch?v=U470xXKfDyE Family & Friends Banks VC, Angels, Etc.
  • 6. Key Terminology Sources: Investopedia.com, http://www.investopedia.com/terms FT.com, http://lexicon.ft.com/ Term Sheet Cap Table Valuation Convertible Note Dilution Crowdfunding Equity vs. Donation Common vs. Preferred Stock
  • 7. Have you ever tried raising $ for a startup? YES or NO
  • 8. How Long Does it Take to Raise $? It depends, but it’s usually a long process. Source: http://danielodio.com/daniels-rule-of-10-angel-intros-1mm-raise-infographic
  • 9. Should I Take Outside Investment? Nothing beats cash flow; if you don’t need $, don’t take it PROS CONS Hire faster Launch faster Experiment with more things (marketing, partnerships, etc.) Investors support as advisor(s) Give up equity/ownership Dilute yourself and your shareholders More people to answer to: direction of company no longer only up to you
  • 10. How do I decide how much $ to raise? *Source: http://www.techrepublic.com/article/the-dark-side-of-venture-capital-five-things-startups-need-to-know/ How much $ do you need to hit certain benchmarks Two good methods If no benchmark, good rule of thumb: take amount it takes to sustain operations for next 18 months + 25- 50% for added flexibility
  • 11. What do investors look for? TEAM IDEA TRACTION LARGE MARKET OPPORTUNITY COMPETITION
  • 12. Pitch Deck – What to Include Team Overview High-level overview of your company Problem How your startup solves the problem Market Size Competition Traction Financial Projections The ASK How much are you raising? How will you use the $ FINANCIA STATS INTRO L
  • 13. You raised money...Now what? Communicate with and update your investors Focus on milestones Celebrate! (and then get back to work!)
  • 14. Are you familiar with the JOBS act? YES or NO
  • 15. JOBS Act = New Opportunities NOW FORTHCOMING JOBS Act Title II Tell everyone you’re fundraising TIME JOBS Act Title III Fundraise from everyone (not just accredited investors)
  • 16. Pros of Equity Crowdfunding Promote your company to a larger pool of investors outside your personal network, saving time and effort Smaller investment minimums allow more investors to participate More investors = More strategic advisors with knowledge of/experience in your space 1 2 3

Editor's Notes

  1. Is it necessary to keep that subtitle? Since most of the presentation is talking about how difficult it is, it may not be a good idea to lead them on by showing them a big number (potentially raising false hope). Just a thought.
  2. Bootstrapping Friends and Family Customers Accelerators Angels Crowdfunding VC Bootstrapping Savings Debt Credits cards – still the most popular method Home equity or personal loans
  3. Term Sheet – Non-binding agreement setting forth the basic terms and conditions under which an investment will be made Cap Table – Spreadsheet or table that shows ownership stakes of all major shareholders of your company Valuation - Process of determining the current worth of a company Pre-Money Valuation – Value of a company before it receives outside funding Post-Money Valuation – Value of a company after funds have been added to the balance sheet Convertible Note – Short-term loan that “converts” to equity upon a new fundraising round Common vs. Preferred Stock –Securities that represents ownership of a company; common stock is at the bottom of ownership structure; in event of liquidity event (sale, etc.) common shareholders only get paid after everyone else paid in full, including preferred shareholders. Dilution – Reduction in the ownership % of a share of stock caused by the issuance of new stock (i.e. new fundraising) Crowdfunding – Rewards/Donation based is Kickstarter model; you give a small amount of money to support a product/project you support and in exchange might get some sort of reward (tshirt, etc.); Equity based crowdfunding is what we’re doing at Onevest. This is when investors (currently only accredited investors) invest money in a startup for a piece of equity in the company. Similar to other startup investing, except open to a larger pool of investors.
  4. Answer: it could take a long time (maybe b/t 6-9 months) but every situation is different This chart isn’t mean to scare you, but it represents one startup’s tracking of all of their outreach when raising a seed round and how long each deal took to come to a close (yes or no on investing). The large circles represent successful investments. You can see there were a lot of players, some took longer than others, and the process itself was very time consuming.
  5. HELP WITH THIS. Need to add this phrase: “Pros/Cons of raising on lower end & higher end of your target” How much $ do you need to hit certain benchmarks If just building software, easy calculation = Calculate cost of engineer, how long to build MVP, and how long to do marketing If more than just building out software – think of other milestones you need to reach (build prototype materials cost, new hires cost, etc.) Raising on lower end of your target Pros Suffer less dilution Get back to work sooner Forced to be more resourceful Cons Shorter runway Often need more $ than you think; nobody can see into the future Grow team slower or not at all Raising on higher end of your target Pros Hire more people to achieve your goals/vision Longer runway More opportunities to pivot Cons Suffer more dilution
  6. Too crowded?
  7. Communicate with & update your investors Focus on milestones Celebrate…and then get back to work
  8. Now - JOBS Act Title II Tell everyone you’re fundraising Forthcoming – JOBS Act Title III Fundraise from everyone, not just accredited investors