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© 2010 C2IVC
How to raise moneyHow to raise moneyfor your first startfor your first start--up businessup businessPeter Cheng | 程勇http://cn.linkedin.com/in/petercheng
© 2010 C2IVC
AgendaAgendaIs right time for Start-ups? How much do you really need for a Startup? Raise money, alternative way Get things done , Strategy to Action
2
© 2010 C2IVC
I have a Dream
© 2010 C2IVC
The Business Revolution
What’s Next 5 Year?
1999 2004 2009
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Today is So Yesterday
NASDAQ
China Stock A
The Gartner Hype Cycle
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Is the right time?
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What Type of Business Are You in?
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Content vs Context vs Timing
• Right idea in the wrong place (JFox)• Right idea, right place wrong timing (Yes PPG)• Right idea, right place, right timing…but Wrong
team (Xiaonei)
天时 地利 人和
© 2010 C2IVC
How much do you need?
• Project how much money you need for one year
• Add a 30% buffer• Fundraising will take 6-9 months. (current
climate 9-12+ months)• Angel (seed) or venture capital (Series A)
Beijing RMB 50,000 ~ 100,000 Start-up
© 2010 C2IVC
Who is your ideal investor?
• Capital needs dictate investor type• ✓ Micro-seed capital. < RMB 100,000
(i.e.TechStars, friends & family, savings, Visa/Mastercard)
• ✓ Seed capital. RMB 100,000 - 2 million (angels/angel funds. i.e 雷军)
• ✓ Series A round. RMB 2 – 10+ million (i.e. north light vc)
• ✓ Smart money is best. At some point you need money in.
© 2010 C2IVC
Make your company investment ready
• Get Things in Order» Vision -- What we do » Strategy -- How we do it» Action – Get things done
• Packaging Your Startup» Create a solid team» Target a segments market» Build an advisory board» Sign strategic partners or» blue chip customers
© 2010 C2IVC
Crowding Funding , A alternative way
• Raise $ 300,000 from 1~3 investor• Raise $ 30,000 from 10 private investors
© 2010 C2IVC
Everyone has different strengths Tell your supporters all the
ways they can help• Donate• Spread the word• Host a fundraiser• Offer matching funds• Feature your project on their
blog or social network• Provide creative ideas to get
donors energized
© 2010 C2IVC
Identify Your Network
• Donors• Friends• Family• Board Members• Personal network• Coworkers• Staff• Fans• Community organizations
© 2010 C2IVC
Get your network to spread the wordCrowdfunding
Development Director
Emails 100 donors asking for $10 each
and to tell 100 of their friends.
100x100x$10 = $100,000
Same effort, but better result.
© 2010 C2IVC
Strategy to Action
• Building strategy is like a trip to the moon...you know your target but it keeps moving and you have to react accordingly
Paraphrased fromRegis McKenna
Vision
Resource
Strategy
Action
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Basic Elements of a Strategy
• Organization Chart• Strategy Model• Project & projectportfolio• Projectportfolios’ Performance• Projectiportfolios’ GANT chart - Roadmap• Metrics - Measure of success
© 2010 C2IVC
From Strategy to Action
© 2010 C2IVC
Agile Strategy
© 2010 C2IVC
Reasons for High Tech Company Failed
• Lack of Market Focus (a.k.a. Segmentation)• Undifferentiated Products• Failure to Establish the Right Competitive Barriers• Misinterpretation of the Technology Adoption
Lifecycle Model
© 2010 C2IVC
It’s about collaboration
•Shareholder Engagement
•Coordination & Collaboration
•Social Media Integration—wikis, Google Docs
© 2010 C2IVC
Opening Soon…… April 2010
www.c2ivc.comFocus Areas:
• Open Source Software and Services • Technology Enable Services• Mobile Computing
© 2010 C2IVC
Best of luck!
Peter Cheng
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