raising money from angels and vcs
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Raising Money From Angels and VCs
Matt Hulett
Dec 2012
Welcome To Thunderdome
Raising Money Is Damn Hard
• For seasoned and successful, entrepreneurs its still hard
• Most entrepreneurs cannot raise
Series A
Series B
Series C
Total VCs
21 31 23
Total term sheets
2 2 2
TIPS FOR RAISING MONEY
Prepare Before You Start
1. Get a great lawyer – actually more of a consigliere 2. Prepare like a salesman
– Keep it exclusive – Sales pipeline mentality – Have a business plan – Have a plan for the capital proceeds
3. Build a sexy deck – Show momentum – Define a big market – Establish confidence – Wow them
Have A Great Lawyer
Seattle’s Top Consigliere
RAISING MONEY IS A SALES PROCESS
Keep It Exclusive
Build A CRM Process
• Create funnel management on each prospect – build prospects from “hot”, “warm,” “lukewarm,” “dead”
• Tackle 3-4 at a time
• Push interested parties to declare interest
• Find the right partner
• Be cognizant of the venture B.S. – “we like you but we’d like to see more market traction” – this is a no
SEXY DECK EXAMPLES
Build A Sexy Deck
• Show momentum
• Define a huge market and how you plan to attack it
• Establish confidence in you, your team, and the company
• Wow them – pitch your company as if you were pitching a movie
Bad Example Of Momentum
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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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North
Chart Titles are Helpful
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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97
If You Don't Tell Me The X Axis, How Will I Know What it Is?
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Series1
Series2
Series3
Series4
Series5
Series6
Series7
Series8
Series9
Series10
Series11
0
100,000
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Apr May Jun Jul Aug Sep Oct Nov Dec0
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Apr May Jun Jul Aug Sep Oct Nov Dec
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Apr May Jun Jul Aug Sep Oct Nov Dec0
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Apr May Jun Jul Aug Sep Oct Nov Dec
Good Example Of Momentum
Better Example Of Momentum
A Good Seattle Example
DEFINE A BIG MARKET
Show Them Where You Fit Insert New Entrant
Competitors This is You
Insert Traditional Competitors
Innovation:
Revenue:
Innovation:
Revenue:
Innovation: Revenue:
Example of some market share proof points in this section
Market Share and Total Addressable Market
Investors like disruptive plays that tackle big markets
Even a small % of execution on your part is a big business
Market share
19
Make Them Feel Confident In You, The Team, The Company
• If you are weak pretend you are strong
– Build a world-class Board, advisory board, or management team
– Coming from a big company without startup experience….prepare to fight skepticism
• If you a strong…well, you are doing ok
– If you are a successful serial entrepreneur
– Relationship with a VC
NEVER LEAVE THE ROOM WITHOUT THE “ASK”
“Ask” Slide – Raising $nM To Accelerate Growth
• Financing History – Explain what you’ve done
• Current Raise – Get detailed on your use of
proceeds
• Start with what you told them and then tell them again…
$0.0 $1.0 $2.0 $3.0 $4.0
Other
CAPEX
Tech Acq
Project C
Project B
Project A
Millions
22
Total=$nM
In Conclusion
1. Get a great lawyer – actually more of a Consigliere 2. Prepare like a salesman
– Keep it exclusive – Sales pipeline mentality – Have a business plan – Have a plan for the capital proceeds
3. Build a sexy deck – Show momentum – Define a big market – Establish confidence – Wow them
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