FORECASTING YOUR NEEDS
Cash Flow Forecast
Use of Funds
Raise more than you need
Raise less than you need
EQUITY INVESTMENTS
Pros and Cons
Friends and Family
Angel Investors
“Super Angel” Investors
Seed Investors
Venture Capital
INVESTORS’ BUSINESS MODEL
Step 1 – Find worthy investments
New Submissions 100%
Screening 6.50% 100%
Presenting 5.10% 78%
Due Diligence 3.20% 49%
Invested 2.30% 35%
Source: Angelsoft.net
HOMEWORK
For Next Class (Tuesday), Present your Funding Plan
• How much will you need to get to cash flow positive?• Can you derive that from your business model?
• How will you raise that money?• Assuming you’re in the top 2%, who are the top three
investors you’d like to have and why? How did you find them?
• Fill out the dilution worksheet with the number of rounds you think you’ll need and employee stock options.
RESOURCESResources
• “How to Fund a Startup” http://paulgraham.com/startupfunding.html• Mark Suster “Raising Venture Capital”
http://www.bothsidesofthetable.com/pitching-a-vc/• Seed-stage Valuation Guide
https://jordancooper.wordpress.com/2011/01/12/seed-stage-valuation-guide/
Finding Investors
• AngelList http://angel.co/
First Hand Experience
• Udemy http://www.udemy.com/blog/2010/09/08/udemy-fundraising/• “Flying with Angel Investors”
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1921