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The Process of Fund Raising
DO YOU EVEN NEED FUNDING?
Documentation – Do we even need that?
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E: [email protected] T: @AbhayTandon20
Identify and Map – Mentors and Investors
STRATEGIC INVESTORS ONLY!!
The Process of Pitching
E: [email protected] T: @AbhayTandon20
Need for Documentation
Is the documentation for Investors only?
What documents do we require and why?
Investment Memorandum
Financials + Valuation
Pitch Deck
Teaser
E: [email protected] T: @AbhayTandon20
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What does the Investment Memorandum contain?
An Investor Memorandum is a set of documents that allows you to pitch for fund
raise to Investors with a defendable Investment proposition.
A Business Plan is NOT THE SAME as an Investment Memorandum.
It contains:
Need for Documentation
Detailed Competitor Analysis.
Market Sizing.
Industry Analysis.
Success Stories.
Product/ Service Information and
Laddering
Roadmap to Exit (Exit Strategy) etc.
Financial Synopsis
E: [email protected] T: @AbhayTandon20
Pitch decks
Types:
1 min
5 mins
10 mins
“ What are you trying to Solve and How are you planning on doing that?
Problem Area, Solution, Product, Market Potential, Team, Business Model and Growth prospects,
Investment Ask!““ Problem Area, Solution, Product, Market Potential,
Team, Business Model, and Growth prospects, Investment Ask, Why Now, Summary!
E: [email protected] T: @AbhayTandon20
What does a typical pitch deck
contain? Title Slide
Team
Problem Area
Solution
Product
Market Potential
Business Model and Traction
YoY Growth Plan
Investment Ask
Summary
E: [email protected] T: @AbhayTandon20
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Soft Attributes while Pitching!
Passion.
Projection.
Sell the problem before attempting to the sell the solution.
Present a credible team.
Connect with the judges before engaging the audience.
Be confident/know your stuff
Show enthusiasm
E: [email protected] T: @AbhayTandon20
What mistakes to avoid while Pitching!
No competition… Really now??
Jargon/acronyms
words per slide
Not telling how you’ll make money
““Everyone has a competitor, or will have a
competitor. A startup should know what
business they are really in. Kodak thought they
were in the photographic film manufacturing-
selling business. They were in the "capturing
memories and bittersweet moments" business.
Instagram does that now. Our brains, directly
plugged into the cloud, will do that tomorrow.”
- Tarak Rindani – VP at Shadoka Ventures
E: [email protected] T: @AbhayTandon20
What mistakes to avoid while Pitching!
Addressable Market size only!
Unrealistic projections
Reading your notes/ slides.
No exit plan
Mistakes/misspellings (Unforgivable!)
Claimed Market Actual Market
E: [email protected] T: @AbhayTandon20
Typical Questions by Investors
How do you differentiate yourself from your competitors?
What is your Exit strategy?
What are the use of funds?
What is your valuation?
What is your traction?
What is the salary that you are drawing?
How much money have you infused in so far?
What is the pre investment share holding pattern?
What is your current valuation and on what basis have you taken that?
E: [email protected] T: @AbhayTandon20
