This document summarizes a class about raising capital from investors. The class covered pitching investors and finding the right investors to back your company. It teaches that entrepreneurs should be prepared to pitch their idea anywhere at any time to potential investors. When pitching, entrepreneurs should tell a clear, concise story about the problem their company solves and how they will use the funds. The document provides tips on when is the best time to raise funds, what investors want to see in the entrepreneurs and companies they back, and what should be included in the pitch. It also introduced a guest speaker, Brian Cohen, an experienced angel investor, to provide real world perspective.

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FELLOWS CLASS #7: RAISING CAPITAL PART 3
JANUARY 16TH, 2015
Monday, January 19, 15

2. • READINGS & VC MATH EXERCISE
• RAISING CAPITAL PART 3: PITCHING INVESTORS
• REAL WORLD PERSPECTIVE: BRIAN COHEN
• HOMEWORK #3 PRESENTATIONS
• QUESTIONS
IN TODAY’S CLASS...
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Monday, January 19, 15

3. RAISING CAPITAL: PART 3
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PART 1: PART 2: PART 3:
FUNDRAISING
OVERVIEW
VC MATH /
DEAL
STRUCTURING
PITCHING
INVESTORS
Monday, January 19, 15

4. ENTREPRENEURS NEED TO BE READY TO PITCH... ANYWHERE
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5. 5
WHAT’S MY POINT?
TRAIN YOURSELF TO TELL A CLEAR, CONCISE STORY.
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6. 6
FINDING INVESTORS IS EASY...
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7. ... BUT MAKE SURE THEY ARE THE RIGHT INVESTORS!
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WHAT STAGE DO THEY INVEST?
WHAT SIZE CHECKS DO THEY WRITE?
WHAT’S THEIR FOCUS / BACKGROUND?
WHO ELSE IS IN THEIR PORTFOLIO?
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8. FINDING THE RIGHT INVESTOR:
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• TIME MANAGEMENT
• MORE EFFECTIVE / EFFICIENT OUTREACH
• ASK FOR TARGETED INTRODUCTIONS
• RECEPTIVITY INCREASES
• DEMONSTRATES YOU DID YOUR HOMEWORK!
Monday, January 19, 15

9. WHAT TYPES OF ENTREPRENEURS DO INVESTORS WANT TO BACK?
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C A P A B L E
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10. WHAT TYPES OF ENTREPRENEURS DO INVESTORS WANT TO BACK?
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C
A
P
A
B
L
E
OACHABLE
UTHENTIC
ROFIT DRIVEN
CCOMPLISHED
UILDER
EADER
XPERT (DOMAIN & EXECUTION)
Monday, January 19, 15

11. ✓ NOT WHEN YOU’RE RUNNING OUT OF CASH!
✓ HAVE (IDEALLY) AT LEAST 4-6 MONTHS CASH FLOW AVAILABLE
✓ BE BUILDING ON-GOING RELATIONSHIPS WITH INVESTORS
✓ RAISE ENOUGH CAPITAL FOR AT LEAST 12 MONTHS
WHEN SHOULD YOU RAISE?
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FUNDRAISING CAN BECOME A FULL TIME JOB IN ITSELF!
“*Green Zone”
Jan 6th-May 15th
Sept 8th-Oct 15th
“*Yellow Zone”
May 16th-June 30th
Oct 16th-31st
“*Red Zone”
July 1st-Sept 7th
Nov 1st-Jan 6th
http://www.bothsidesofthetable.com/2009/11/08/funding-season-ends-next-week/
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12. WHAT TO PITCH
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• WHAT IS THE PROBLEM, INEFFICIENCY, OR CONSUMER PAIN POINT?
• BUSINESS OVERVIEW
• TEAM
• MARKET SIZE (HOW BIG IS THE OPPORTUNITY, AND IS IT GROWING?)
• WHAT IS YOUR SOLUTION? (YOUR PRODUCT OR SERVICE)
• BUSINESS MODEL
• WHO ARE YOUR CUSTOMERS? HAVE YOU VALIDATED THE NEED?
• HOW ARE YOU GOING TO REACH / ACQUIRE THEM?
• COMPETITIVE LANDSCAPE
• WHY IS YOUR STARTUP UNIQUE / BETTER? WHATS DEFENSIBLE?
• FINANCIAL PROJECTIONS
• FUNDRAISING ASK
• ROADMAP OF HOW THE FUNDS WILL BE USED
Monday, January 19, 15

13. REAL WORLD PERSPECTIVE
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BRIAN COHEN
• CHAIRMAN OF NY ANGELS
• 1ST INVESTOR IN PINTEREST
• OVER 70+ ANGEL INVESTMENTS
• AUTHOR, “WHAT EVERY ANGEL INVESTOR WANTS
YOU TO KNOW”
• FOUNDER AND CEO OF LAUNCH.IT, GOOD CAUSE
COMMUNICATIONS
REAL WORLD PERSPECTIVE
Monday, January 19, 15

14. • NO OFFICE HOURS NEXT WEEK
• NEXT CLASS: THURSDAY JANUARY 22ND
• BE SURE YOUR READINGS ARE COMPLETE!
• SEND ME YOUR TWEETABLE TRUTHS, OR INDUSTRY TOPICS TO DISCUSS
• HOMEWORK #4: YOUR PITCH DECK- ASSIGNMENT TO COME
NEXT WEEK...
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Monday, January 19, 15

15. CONTACT:
JESSICA PELTZ, INVESTMENT DIRECTOR
JPELTZ@KBSP.VC
JOSH ENGROFF, MANAGING PARTNER
JENGROFF@KBSP.VC
QUESTIONS?
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