Upload
thefunded
View
222
Download
0
Embed Size (px)
Citation preview
8/14/2019 Get Funded for Your Dream
1/20
get funded for your dream
get funded for your dream
a crash course raising smart moneya crash course raising smart money
a crash course raising smart moneya crash course raising smart money
By Adeo Ressi, Founding Member of TheFunded.com
8/14/2019 Get Funded for Your Dream
2/20
Gl oba l Venture Capita l StatisticsGl oba l Venture Capita l StatisticsGl oba l Venture Capita l StatisticsGl oba l Venture Capita l Statistics
$60 Billion USD Annua lly Invested
3,000 Companies Funded Annua lly
3,800 VC Firms
16,500 Professional Venture Capita lists
$60 Billion USD Annua lly Invested
3,000 Companies Funded Annua lly
3,800 VC Firms
16,500 Professional Venture Capita lists
8/14/2019 Get Funded for Your Dream
3/20
8/14/2019 Get Funded for Your Dream
4/20
G reat Timing for YouG reat Timing for YouG reat Timing for YouG reat Timing for You
Low Costs New Techno logies Open Source
New Distribution Inexpensive Gl oba l Labor Poo l
New Opportunities Web 2.0 Socia l Networking
Strong Financing C limate
Low Costs New Techno logies Open Source
New Distribution Inexpensive Gl oba l Labor Poo l
New Opportunities Web 2.0 Socia l Networking
Strong Financing C limate
8/14/2019 Get Funded for Your Dream
5/20
What Type of Company gets Financed?What Type of Company gets Financed?What Type of Company gets Financed?What Type of Company gets Financed?
Big VisionG rowing Market
New Approach
New Techno logy
Big VisionG rowing Market
New Approach
New Techno logy
FacebookG oog le
Microsoft / Yahoo
Electronic Arts
App le Computer
FedEx / KinkosCisco
and more
8/14/2019 Get Funded for Your Dream
6/20
8/14/2019 Get Funded for Your Dream
7/20
Investor MotivesInvestor MotivesInvestor MotivesInvestor Motives
Fund Returns - $$$
Cheap Equity
Partner Esteem
8/14/2019 Get Funded for Your Dream
8/20
What to Expect when Fundraising?What to Expect when Fundraising?What to Expect when Fundraising?What to Expect when Fundraising?
L ow High
Management Effort 25% 50%
Time to Close 4 mns 12 mns
VCs Pitched 10 60
Offers Received 1 5
Equity Dilution 15% 45%
Amount Raised $0.5 MM > $10 MM
8/14/2019 Get Funded for Your Dream
9/20
Step 1: Choose a G ood Lawyer Step 1: Choose a G ood Lawyer Step 1: Choose a G ood Lawyer Step 1: Choose a G ood Lawyer
Identify 3-4 Fundraising Firms
Interview Firms Thorough ly What is the right corporate structure? How many VC dea ls have they done? How many VC firms can they introduce you to? How wi ll they protect your equity?
Conf lict of Interest & Dec lining Honesty
Identify 3-4 Fundraising Firms
Interview Firms Thorough ly What is the right corporate structure? How many VC dea ls have they done? How many VC firms can they introduce you to? How wi ll they protect your equity?
Conf lict of Interest & Dec lining Honesty
8/14/2019 Get Funded for Your Dream
10/20
Step 2: The Throwaway PitchStep 2: The Throwaway PitchStep 2: The Throwaway PitchStep 2: The Throwaway Pitch
Prepare your First Presentation 20 minutes long
Push the Big Vision Push the differentiation Avoid detai led financia l discussions Avoid confidentia l information
Take a First Throwaway Pitch Meeting Write everything down Watch for when your pitch disengages Ask what they liked and did not like
Prepare your First Presentation 20 minutes long
Push the Big Vision Push the differentiation Avoid detai led financia l discussions Avoid confidentia l information
Take a First Throwaway Pitch Meeting Write everything down Watch for when your pitch disengages Ask what they liked and did not like
8/14/2019 Get Funded for Your Dream
11/20
8/14/2019 Get Funded for Your Dream
12/20
Step 3: Prepare your ApproachStep 3: Prepare your ApproachStep 3: Prepare your ApproachStep 3: Prepare your Approach
1. Introductory One Sheet
2. Meeting PowerPoint
3. Capita lization Tab le
4. Working Financia l Mode l
5. Competitive Landscape Ana lysis
6. Pub lished Industry Research
7. (Audited Financia ls, Patents, Etc.)
1. Introductory One Sheet
2. Meeting PowerPoint
3. Capita lization Tab le
4. Working Financia l Mode l
5. Competitive Landscape Ana lysis
6. Pub lished Industry Research
7. (Audited Financia ls, Patents, Etc.)
8/14/2019 Get Funded for Your Dream
13/20
Step 4: Shotgun AttackStep 4: Shotgun AttackStep 4: Shotgun AttackStep 4: Shotgun Attack
G oa l: Pitch 30 Firms in 2 Weeks Expect 1/10 success ratio
Expect investors to ta lkLeverage Law Firm, Friends, Associates G et introduced find a connection Set-up meetings over the phone or face-to-face Ensure a Partner is present the more the better
Send out the One Sheet in Advance
G oa l: Pitch 30 Firms in 2 Weeks Expect 1/10 success ratio
Expect investors to ta lkLeverage Law Firm, Friends, Associates G et introduced find a connection Set-up meetings over the phone or face-to-face Ensure a Partner is present the more the better
Send out the One Sheet in Advance
8/14/2019 Get Funded for Your Dream
14/20
G ood SignsG ood Signs
Thoughtfu l Questions
Market Understanding
Set Fo llow-up Items
Interesting
Meeting Partners
Bad SignsBad Signs
No Questions
Market Size Ignorance
No Further Steps
Maybe or but
Hand led by Associates
Are they doing competitive research? Are they over ly concerned about traction?Do you sense a run-around?
8/14/2019 Get Funded for Your Dream
15/20
8/14/2019 Get Funded for Your Dream
16/20
Step 5: NegotiateStep 5: NegotiateStep 5: NegotiateStep 5: Negotiate
The First Term Sheet DO NOT ACCEPT IT !!! DO NOT NE G TIATE !!!
Time is on your side Exc lusivity and expirations are tactics
G oa l: The 2 nd / 3 rd Term Sheet Inform the interested parties Avoid the syndicated round
Your Lawyers work for THEM Trust, but VERIFY
The First Term Sheet DO NOT ACCEPT IT !!! DO NOT NE G TIATE !!!
Time is on your side Exc lusivity and expirations are tactics
G oa l: The 2 nd / 3 rd Term Sheet Inform the interested parties Avoid the syndicated round
Your Lawyers work for THEM Trust, but VERIFY
8/14/2019 Get Funded for Your Dream
17/20
Key Secondary TermsKey Secondary TermsKey Secondary TermsKey Secondary Terms
G ood Bad
L iq Preference 1x >3x
Participation None Fu ll
Inv Board Seats 1 >1
Founder Vesting None 75%Option Pool 20%
8/14/2019 Get Funded for Your Dream
18/20
Step 6: C lose the FinancingStep 6: C lose the FinancingStep 6: C lose the FinancingStep 6: C lose the Financing
Diligence Prepare your references
Say no when excessiveLega l The dea l is more important that you The DETAILS MATTER
Have a Back-up P lan
Diligence Prepare your references
Say no when excessiveLega l The dea l is more important that you The DETAILS MATTER
Have a Back-up P lan
8/14/2019 Get Funded for Your Dream
19/20
Tips from the InsideTips from the InsideTips from the InsideTips from the Inside
Do not outsource your fundraising
Do your homework
There is no Industry Standard
There is no confidentia lity
Understand exit scenarios
Inform targets of progress during thenegotiation
Do not outsource your fundraising
Do your homework
There is no Industry Standard
There is no confidentia lity
Understand exit scenarios
Inform targets of progress during thenegotiation
8/14/2019 Get Funded for Your Dream
20/20