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Discussion: Early-Stage VC in 2015
Mike McCormick JFE Accelerator – 9/29/15
www.rubicon.vc 2
Intro -‐ Mike McCormick • Georgetown University – Washington, DC • Started two companies in college • Management Consul>ng • Angel Inves>ng • Business Development & Ops @ LiquidSpace • Georgetown Angels • Rubicon Venture Capital
@MikeMcCorms -‐-‐ www.mccormick.vc
www.rubicon.vc 3
Intro -‐ Rubicon Venture Capital • SF and NYC Offices • Joshua Siegel, Andrew Romans and Mike McCormick • Established in early 2014 • Focused on Later-‐Seed and Series A – Non-‐lead investor • Opportunis>c investments across tech sectors with US-‐focus • Focused on value-‐add (WHAT A CLICHÉ RIGHT?!?!) • I like marketplaces, dynamic pricing models, fin-‐tech, IoT, SaaS, etc
@RubiconVC -‐-‐ www.rubicon.vc
www.rubicon.vc 4
Today’s Agenda • The Current State of Venture Capital
• “Seed is the new Series A” and “Angel is the new Seed”
• What’s up with the “Series A Crunch”?
• What investors look for at each stage
• How to raise your first round of funding
www.rubicon.vc 5
“Seed is the new Series A” ???
• Series A used to mean a round above $500k or possibly $1m
• Now you see $4m seed rounds or “Direct to A” phenomenon
• “Angel” or “Pre-‐Seed” is the new Seed
• Take-‐away: Don’t worry too much about the nomenclature. Focus on what amount of capital you need to raise to get you the runway and resources needed to reach meaningful milestones, and know who to target for that capital at that stage.
www.rubicon.vc 6
The “Series A Crunch”
• Recent BIG increase in number of seed rounds, but only modest increase in amount of Series A’s
• Only the best seed co’s (about 30%, perhaps fewer) will raise Series A – Founders oien underes>mate the difficulty of raising Series A
• Recently seed investors have also begun to pump the brakes which may bring valua>ons back down to earth.
www.rubicon.vc 7
What Investors Look for at each Stage
• Pre-‐Seed / Angel: Founders, Vision, Story
• Seed: Founders, Early Trac>on, Vision
• Series A: Product-‐market fit, Proven viability of growth engines and unit economics, Ready to scale, Founders, Vision
• Series B, C, D, etc…: Numbers, Growth, Billion-‐dollar poten>al
www.rubicon.vc 8
How to raise your first round of funding
• Target angels
• Work your network!
• Tell a great story
• Give them something to latch on to. Your first backers will invest because they like you and believe in your vision.
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Thank You!
@MikeMcCorms – www.mccormick.vc
JFE Accelerator – 9/29/15