This document provides an overview of venture capital and how founders can understand it and raise funds. It discusses the different sources of startup funding and how venture capital works, with the goal of large returns through a few high-growth companies. Founders need to understand that venture capital firms expect outsized returns requiring rapid scaling and large addressable markets. The document outlines the process of planning, researching firms, structuring the fundraise, pitching to investors, and negotiating deals to raise venture capital successfully.
Are you ready to make that leap from bootstrapping to investment capital? If you're ready to accelerate the growth of your startup, check out this presentation from Kristine Di Bacco, Associate with Fenwick and West, LLP (www.fenwick.com) and Sirk Roh, COO for Early Growth Financial Services (www.earlygrowthfinancialservices.com), which covers how to take your startup to the next level of financing -- including an in-depth look at convertible promissory notes and term sheets.
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.
Business Valuations For Early Stage Companies by Hany Sewilam
Produced by ENTR "Silicon Valley" - 2020
Everything you must know about the business valuation process and how to discover the fair price for your early stage project
Insider's Guide to Raising Early-Stage CapitalNnamdi Okike
An insider's guide to raising early-stage capital. An explanation of the key things to think about when raising early-stage funding from angels, angel groups, and venture capital firms.
Are you ready to make that leap from bootstrapping to investment capital? If you're ready to accelerate the growth of your startup, check out this presentation from Kristine Di Bacco, Associate with Fenwick and West, LLP (www.fenwick.com) and Sirk Roh, COO for Early Growth Financial Services (www.earlygrowthfinancialservices.com), which covers how to take your startup to the next level of financing -- including an in-depth look at convertible promissory notes and term sheets.
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.
Business Valuations For Early Stage Companies by Hany Sewilam
Produced by ENTR "Silicon Valley" - 2020
Everything you must know about the business valuation process and how to discover the fair price for your early stage project
Insider's Guide to Raising Early-Stage CapitalNnamdi Okike
An insider's guide to raising early-stage capital. An explanation of the key things to think about when raising early-stage funding from angels, angel groups, and venture capital firms.
Startup Investing 101 - Learn how to invest in startups.
As one of the leading online startup investing marketplaces, Onevest's vision is to make investing in privately held companies easy by providing a gold standard in deal flow that matches your specific areas of interest. You tell us what you like, and we deliver just that.
Webinar Agenda
Top four most asked questions by newbie startup investors.
1. How do I compare startups to determine most attractive opportunity?
2. What type of due diligence should I do before making an investment?
3. What happens after I invest in the startup?
4. What type of return on investment can I expect?
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/
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Raising Capital: Negotiating with Potential Investors (Series: The Start-Up/S...Financial Poise
Every business needs capital (cash) to fund its activities. But not all capital is created equal. At the most macro level, a business can raise cash by selling equity or by borrowing (and these alternatives are not by any means mutually exclusive).
This webinar explains the different types of capital available to fund a startup; how to identify potential funding sources; how to evaluate competing funding proposals; and how (and when) to negotiate financing terms. In addition, this webinar will address the kinds of investors for entrepreneurs to consider for their start-ups.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/raising-capital-negotiating-with-potential-investors-2021/
Startup Investing 101 - Learn how to invest in startups.
As one of the leading online startup investing marketplaces, Onevest's vision is to make investing in privately held companies easy by providing a gold standard in deal flow that matches your specific areas of interest. You tell us what you like, and we deliver just that.
Webinar Agenda
Top four most asked questions by newbie startup investors.
1. How do I compare startups to determine most attractive opportunity?
2. What type of due diligence should I do before making an investment?
3. What happens after I invest in the startup?
4. What type of return on investment can I expect?
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/
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Raising Capital: Negotiating with Potential Investors (Series: The Start-Up/S...Financial Poise
Every business needs capital (cash) to fund its activities. But not all capital is created equal. At the most macro level, a business can raise cash by selling equity or by borrowing (and these alternatives are not by any means mutually exclusive).
This webinar explains the different types of capital available to fund a startup; how to identify potential funding sources; how to evaluate competing funding proposals; and how (and when) to negotiate financing terms. In addition, this webinar will address the kinds of investors for entrepreneurs to consider for their start-ups.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/raising-capital-negotiating-with-potential-investors-2021/
a presentation I made at Jacksonville State University's "The Alabama Conference for Inventors"... some content blatantly lifted from other great presentations
Venture capital equity funding explained - Paula Mariwala, Seed Fundtiemumbai
Know more about fund raising and the key parameters that an investors takes into consideration while investing his money and time into a business or entrepreneur as explained by Paula Mariwala - Partner Seed Fund
Avoid startup mistakes in money management & financial planningAcceleratorYYC
We had Jacques Lapointe of AVAC discuss how to avoid "re-running" the same mistakes that commonly plague startups in Alberta for AcceleratorYYC's March 1 hr Lunch & Learn (slides & audio below).
Presentation by Steve Carkner, Head of Innovation at Revision Military as part of the Business of IoT Workshop at IoT613 on Thursday, September 29, 2016.
How do I Raise Capital? - Lecture at University of OxfordSia Houchangnia
Dr Ricardo Schäfer and Sia Houchangnia from the Seedcamp investment team, were invited to give a lecture at the Oxford University Saïd Business School, as part of its flagship lecture series Building a Business. The lecture was given to 200 students interested in learning more about starting a business and the key principles of how to do so. The topic of this lecture is on How to Raise Capital.
The lecture was filmed and you can watch the video here:
https://youtu.be/KWjtRikKDLE?list=PLtXf43N26ZiefSYP5o2GmMnN6V_WYkUe3
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.
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!
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
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
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.
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.
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
2. Arali Ventures 2
Understanding Venture Capital
What is it
How does it work
Why it is important for founders to understand VC
Raising Venture Capital – how to go about it
Resources
3. Arali Ventures 3
Funding for Startups
Sources of funding has increased significantly, so has its diversity
Boot-strap, fund
thru revenues
3 F’s ( friends,
family and fools)
Angels,
networks,
syndicates,
Accelerators
Venture Funds (
seed funds,
Growth funds)
Growth funds/
Strategic
Motivation, return expectations differ as we move along the chain
Normally, Investor sophistication also tends to increase along the chain
As a founder, understanding these differences will be crucial in getting right fit investor
4. Arali Ventures 4
Decoding VC
VC’s raise money with the expectations of delivering outsize returns
100 Cr
400 Cr
Individuals,
HNI’s
Family Offices
Corporates
Sources @30% IRR over 5 yrs,
returns expected to be
4X of fund size
Fund size Return expectation
5. Arali Ventures 5
Decoding VC
The VC model is built on a few outsize returns
Scenario 1 (10 4X exits, 10 3X exits)
Exit value from 4X returns =200 Cr
Exit value from 3X returns = 150 Cr
Fund Portfolio strategy
Investments 20
Individual investment 5 Cr ( 3Cr + 2 Cr to retain pro-rata)
Equity 10%
Valuation 50 Cr
Scenario 2 (1 50X exit, 1 30X exit, 18 write-offs)
Exit value from 50 X return =250 Cr
Exit value from 30 X return =150 Cr
The POWER law applies. <20% of investments generate >80% of returns
6. Arali Ventures 6
What it means for founders
Expectations of outsize returns translate into these criteria
Large addressable market
Rapid Scaling ( achieving valuations of 2500Cr in 5 yrs, means hitting revenues of 250-
400 Cr – 500Cr in that period)
Is the timing right? ( is the market ready??)
Not easily replicable ( MOAT)
Promoter(s) mindset & ambition
Understanding drivers of VC investments will help if it is right for you
7. Is VC right for you?
Key aspects to have clarity on before raising VC
Arali Ventures 7
Overall Strategy, Vision for the business.
• Should you raise VC at all?
Capital raise
• Is the opportunity cost of not raising going to be very high?
Alignment of VC and Promoter/founder objectives
• Small funds might have a better fit sometimes for founders happy with smaller
outcomes.
8. Raising Venture Capital
how to go about it?
Arali Ventures 8
Think of fund raising is an ongoing activity, esp if you are going to be raising multiple rounds
of capital. Budget for time and effort for the effort. ( typically, one founder takes on the mantle
and brings in others when needed
Nothing beats a structured process, the benefits will last longer than the current raise
Be open; truthful and honest to yourselves
Plan Research Organise Pitch
Negotiate,
Close
9. Planning
How much are you raising, to do what?
Arali Ventures 9
Set milestones for the business
Translate that into numbers, Keep it simple
How much money needed to achieve what milestones
Have a grasp on the numbers. It is your plan, not your
CA’s/banker’s.
Be Frugal. ( We want to fund essential for the business, but not
your lost corporate salaries, atleast till the model is proven)
“Let me check with
finance/CA”
Unrealistic revenue
targets.
Inflated
costs
Higher than norm
promoter salaries
Exits to existing
investors
A well constructed plan speaks for itself
10. Research, Research, Research
And it is all not your market, product related
Arali Ventures 10
List potential investors
Shortlist based on track-record, intersection of thesis, stage, investments,
typical investments size, stage in the fund life cycle. Evolve a priority list
Identify Partners, their history and track record
Develop a hypothesis on what the right investor can bring to the table
Impress with your home-work
11. Structure
Winging it can only get you so far
Arali Ventures 11
Start early, connect and build relationships with VC’s before formal fund-raise
process.
VC’s invest in founding teams, as much as the idea.
Set up and manage fund-raise as a sales process
Leverage networks, actively seek help ( Corollary – you will get your pay-back
time as well)
Focus on engagement; Design for getting feedback as a part of the process
It is OK to hear “no”, better than no response at all
It is all about execution
12. Pitch
Converse, don’t pitch
Arali Ventures 12
It is about the business, not just the technology
Business traction is worth a million slides & words
Get your articulation right
What is the problem you are solving / What is the value for customers?
Why now is the right time? ( most successful startups weren’t the first in their markets!!)
What is the competitive landscape?
Underplaying competition is a warning sign
De-mystify, de-jargonise. Don’t throw technology terms to impress
It is selling alright, but doesn’t mean you have to speak all the time and cant listen.
VC’s evaluate you on flexibility and ability to adapt
Saying “I Don’t know, but I will figure it out” is OK
Keep it Simple, Listen
13. Negotiate and Close
Not the lawyers responsibility
Arali Ventures 13
Don’t be valuation-centric; be capital – centric
In Early stages, valuation is just a derived number between funding ask and
VC’s equity holding criteria
Understand and pay attention to T&C’s.
Seek advice, guidance of ex-entrepreneurs who have raised capital before
Don’t penny-pinch on legal advise. However, be wary of lawyers who will debate
every clause
Pay attention to compliance. Again, don’t penny-pinch on good advisors
Many a slip between the cup and the lip
Deal is only done when the money hits the bank.
It is not – a – winner take all