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8/3/2019 Fund Raising SGFI 4 - Jeffrey Paine
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Fund Raising in Singapore
Jeffrey Paine/Battle Ventures Founder Institute
/ Pyrks2012
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REALITYPREPARATIONPROCESS
Agenda
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REALITY
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Exceptional Outcomes
PandoraFacebook
You are here
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Bad News
• Very few seed stage investors in Singapore know what they are doing
• /Follow on financing for Series A B is
lacking in Singapore• < -8 firms do $1 3M rounds often
enough – , , , , , Walden Vertex Exstream Jafco IIPL
Singtel Innov8• Need to go out of Singapore or need
to make do with $800k organically
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What are investors like inSG?
• Very few are founders or operators• ,Many who are have retired more than 5
years ago
• New entrants may not understand Asian Region enough
• May only invest in something they understand or when most risks are
removed
• (Some are dumb as hell refer to. ), ’ ’TheFunded com don t fault them we don t
;)have Angel Institute yet but money
is money –
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Result
• Not enough well versed sophisticated investors who can value add
• Wrong or bad advice
• No further aid in follow on funding( / )Series A B
• Poor roll up your sleeves types
•
“ ”Slippery slope to Living Dead
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Good News
• ( ~Lots of funds in 2012 iJAM 2 $5M in, ~grants over 2 years NRF TIS $20M
)in 2012
•
Founder Institute is one of a few entities who can help you raise,external financing we are
affiliated with a few funding
initiatives• Growth of new entrepreneurs based in
=Singapore is slowing down competition is scarce
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What do I look for?
• Founding team – , &Likeable coachable know why they are
doing what they do – Oozing leadership – Able to execute (in chaos get things
)done• Market
– ,Not small not too big – Revenue roadmap
•
Product – Launched with learning points( )humbleness
– Knows what to do next to capture<>opportunity Product Roadmap
–
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TRACTION
PRODUCTTEAM
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Traction
• Traction shuts people up• -Markets are efficient individuals
cannot predict traction•
Amount varies by product
• Know your microeconomics• Be mindful of vanity traction metrics• ’ ,f you can t generate traction do
ou really want to raise money?• % %How much is enough? 10 per month? 20 ?
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Product?
• “ ” We will disclose more under NDA
• “I am raising money to build the”product
• “ ”Launching next month
• “ ”Building second version now
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Exceptional Product
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Product Guidelines
• /No promises vision
• ,Show not tell
• ,Quantitative and precise not
qualitative and vague• Something hard with specific
knowledge
•
Expect competition• . ’ ,Build only the best And if you can t
’ *you re not ready
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PREPARATION
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Preparation
• Mental
• Overall
•
Documents
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Mental
• Always be raising• Time is always not enough• It is a sales campaign• Daunting• Frustrating• Time consuming
> / -100 pax | 20 hrs wk | 3 9 mths• You will think of giving up
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Overall
• Product launched with traction(> % ) -20 per month aka Product
Market Fit
• At least 2 fulltime founders• -Big market with somewhat clear go
“to market and how do you make
”money strategies• “ ”Be careful of Living Dead path
•
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Documents
• Incorporated entity with capitalizationtable
• (> )Financial Forecast $10m after 3 years
•
/Prototype Demo
• -1 page executive summary
• -10 15 page investor deck
• Reference list
•
• Product roadmap
• , ,Legal employment financial contracts
• Management accounts
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PROCESS
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Process
3 to 9 months
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Process
• -Pre pitch• The Pitch• Prelim Due Diligence
• - ( , )Follow on meeting sometimes visit• Partnership meeting• Term Sheet• Diligence• Close
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One Goal
• ind the lead investor
• They are your lead investor because
– /They like you team – They believe your business is a sure
thing – They feel they can add value in
scaling up
–
• You want to tart early – Seed funding is a people business
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What are investors for?
• <->Pattern Matching Applied Data – Network
– Experience
–
• Nice People to work with
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Quest to a Lead
• & ( - ) ,A B Target List 60 100 from Crunchbase, ,Angellist Linkedin TheFunded
• Research them
• / /Meet with me mentors grads to run through pitch/deck forecast
• onnect with them through introductions/ .hrough friends portfolio founders No
.old email
• : ,Slow dance Meet them to get advice send progressemails
• - , -Then start with a 4 week sprint get 15 25 meetings or calls per week
• -Start with B List investors to learn your mistakes and improve your pitch
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Quest to a Lead
• -Average between 3 5 meetings before asking someone to lead
• ,Once lead investor has agreed
finalize terms
• Email all interested investors and“ ”start to circle them
– ( % )Soft Circle 50 will close –
( % )Hard Circle 75 will close• Create sense of urgency with a
CLOSING DATE
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Quest to a Lead
• ,After lead investor is secured then – Pitch at public investor
/ ( . . ,events conferences e g BANSEA.)TechVenture etc
– ,Sign up on FounderAngels Angellist and Startuplist
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Tips
• ( ,Advisory Round Notable Founder)Operator who value adds
• ,Cast a Broad Net move simultaneously•
:Your Goal Get to the Next Meeting• Fish out a firm No than a muddled Yes• Easier to pitch a new investor than
to convert one
• ( ),Equity priced round not convertibledebt• PR helps
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Tips
• (Do not take just any meeting be aware of junior people and potential
“ ”)competitor lurkers
•
Best pitch is a discussion• ’ ,Don t lie be humble
• Leverage your network
•
’ , -But if you re having a hard time re
, ’ ( :start don t push Magic Number 10’ )No s
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SOURCES OF CAPITAL INSINGAPORE
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Capital Sources in Singapore
• , &Friends Colleagues Family• , ,Employees Partners Suppliers
• ( , , ,Government Grants MDA IDA SPRING
, …)ACE STB• ( )Angels BANSEA
• ( ,Seed Funds Govt backed Privately
)managed
• Venture Capital Firms
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Capital Sources in Singapore
• , &Friends Colleagues Family• , ,Employees Partners Suppliers
• ( , , ,Government Grants MDA IDA SPRING
, …)ACE STB• ( )Angels BANSEA
• ( ,Seed Funds Govt backed Privately
)managed
• Venture Capital Firms
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Government Grants
• ~ - ( : < )MDA iJAM $50 250k 1 1 100k – : , , ,iJAM1 Athena Azione Expara
, , , ,FrontEdge NUS NTU SITF Thymos
–
: , , ,iJAM 2 Kyosei FatFish Quest Battle ?
• ( ) :ACE Startups fka YesStartup 1 3~$38k
• – /SPRING Singapore TECS POC POV
~ -$250k 1M• ( , .)Others STB MCYS etc
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Angels
-Typically $25 50k checks• A Listers
•
B Listers• Operate with herd mentality
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Seed Funds
• ~NRF TIS Funds $588k – : ( , ,1 1 Exstream Ventures Walden 3V
)SourceOne – : ( , , ,15 85 Neoteny Stream Global Innosight
, ,PlugandPlay Social Slingshot, , .)SmallWorld Techcub8 etc
– 20? new funds in 2012
• ( : ) ~ -Spring SEEDS Capital 1 1 Equity $300500k
–
, , - ,BAF Spectrum Sirius Capital Accel X…Imprimatur Capital• / ~Gobi MDA China Fund $500k• , ,East Ventures Jungle Ventures Mercatus
, … ~Capital Quest VC under $1M
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What should you do?
• <->Idea Prototype – ( + :MDA iJAM Grant $50k $100 100k
)Matching
–
(~ )ACE Startups Grant $38k
– & , (F F Angels Spring Seeds Matching: )1 1
• <-> /Launched Some traction w growth
– & ,F F angels – NRF TIS incubator funds
– Other seed funds
: Overseas
Angellist Founder Angels Accelerators
( . ) 500 co
: >otal Average Amount Possible $800k
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Investor Warning Signs
• Terms that set up future conflicts of interest
• Insistence of c o n t r o l of either
, .stock board seats etc• Insistence of a business model
substantially different from
yours
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In Summary
•
Get to know investors early without pitching• Ask for advice not money
• .Sell them dreams not a product How does your product affect the lives of your customers?
•
Execute and launch as best and fast as you can
• Get customer validation and traction quick
• Raise on at least one exceptional characteristic( )likely product or traction
• <>Get to know SF Bay Area mecca of funding over
( ’ )time SG isn t a funding hub sorry• -PS Assume fierce competition
• – .PPS Keep hustling No Asshole Rule Applies
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Finally
’It won t seem like it while you are,doing it fund raising is probably the
…easiest part of running your company
•
!Enjoy
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The Golden Circle
ACKING THE INVESTOR
:// . . / / / / // /http www ted com talks view lang en id 848
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