#navigatefundraising
Navigating Startup Fundraising:
From Targeting Funding to Closing a Round
Agenda
• Pitch deck fundamentals
• Funding sources
• Helpful tips
• Q&A
Pitch Deck Overview
3
• Keep it simple (8-10 pages, 24-30 font)
• No excel spreadsheets (save for diligence)
• If you can replace words with a simple graphic, do it
• Test your pitch by pitching to 10 people and asking them to describe your company in 1 sentence
Tagline: Ideally 10 words or less
Investor Deck
Month Year
4
Logo
The Problem
What problem are you trying to solve?
5
• Simple picture/graphic always helpful• If this is not a commonly understood industry, start by
giving audience context
Your Solution
How is your company going to fix this problem?
6
Why your team is the right team
Name, Title
• Accomplishments
• Relevant previous roles (logos ok)
7
Name, Title
• Accomplishments
• Relevant previous roles (logos ok)
Next key hire, title(if relevant)
Strategic Advisors(if relevant)
What is The Market Opportunity?
Differentiate between • TAM: Total Available Market• SAM: Serviceable Addressable Market• SOM: Serviceable Obtainable Market
8
Business Model
• How you will make money
• How you are pricing your product
• How you will acquire customers*
9
• Cost to acquire (ideally trending down as you get more targeted)• Process to acquire sales (channel, learnings)• Sales pipeline (if B2B)• Lifetime value
Traction to date
What metrics matter to your business?
10
$Y RevenueX Users Z Transactions
• Additional Key Performance Indicators (KPIs) could be average time on site, % repeat users, % paying customers, # letters of intent from B2B customers, etc.
Why your company is special
11
Dimension 1
Dim
ensi
on 2
Feature Feature Feature Feature
• Have a holistic list of competitors• Consider indirect or future competitors
Investing Details: Call to Action!
12
• Size of your round (raising $500K)• Terms of your round (cap/valuation)• What you’ve raised so far (raised $250K)• Top three things the money will be used for• Background of lead investors or other
strategic investors (if relevant)
Agenda
• Pitch deck fundamentals
• Funding sources
• Helpful tips
• Q&A
Sources of capital
Founders
Company Revenue
Friends & Family
VCs & Angels
Other
• Very high risk• Already investing “sweat equity”
• “Bootstrapping”• How long before profitable / break even?
• Most expensive capital to raise• How will you feel if you fail?
• Not the default• Gives away equity / control
• Bank loans, government grants, business plan competitions, venture debt, strategic investors
14
Ways to value a company
15
% of equity diluted
VC Method
• Raise $X needed for 12-18 months• Each round, typical dilution = 20-25%• $X ÷ Post Money Valuation = 20-25%
• Estimate company acquisition price• Reverse engineer today’s value based on
VC’s required returns
Berkus Method
• Good Idea: $500K• Working Prototype: +$500K• Quality Management Team: +$500K• Strategic Relationships: +$500K• Product Rollout or Sales: +$500K
Agenda
• Pitch deck fundamentals
• Funding sources
• Helpful tips
• Q&A
Fundraising tips
• Let the best pitcher pitch
• Know your numbers really well
• Approach fundraising like a job search – be targeted and do your research
• Pitch the company, not the product
Questions?
Angela Leewww.37angels.com@37angelsNY
Sirk Rohwww.earlygrowthfinancialservices.com@EarlyGrowthFS
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