BEYOND BOOTSTRAPPINGWHAT TO DO WHEN YOU CAN NO LONGER GO IT ALONE.

© 2013, P2Binvestor Inc. All Rights Reserved.

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BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

PRESENTED BY

Krista MorganCo-Founder & COO P2Binvestor

SPECIAL GUEST

Bryn WeaverWeaver Law LLC

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

BOOTSTRAPPING

PROS

• Fundraising is time consuming

• Focus on the product• No equity dilution• Lean startup mentality• Profitability is key• No investor

management

CONS

• Slower growth• Free is harder to

come by• Fewer staff, restricted

hiring options• All-consuming focus

on cash management• No investor support

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

BOOTSTRAPPING ISN’T ALWAYS POSSIBLE

Lack skills to develop product

Large up front costs required

Idea requires expert or large team

Prototype or Beta not easy to achieve

First mover advantage is critical

Credibility of fundraising needed to land contracts

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

TYPES OF CAPITAL

Equity / Convertible Debt• Friends & Family• Incubators• Angels• Venture Firms

Personal debt

Private debt

Commercial debt• Microloans• SBA Loans• Working Capital loans• Equipment financing

Pre-selling product• Crowdfunding

Grants

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

ANGEL EQUITY OR CONVERTIBLE DEBT

Angels Provide ~90% of Outside Equity for Startups

Review approx. 30 deals per month out of 75K applications per yearhttp://www.sec.gov/info/smallbus/acsec/acsec-091713-verrill-hudson-slides.pdf

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

THINGS ANGELS LIKE TO SEE

Clear business outline

Prototype and/or Beta

Testimonials from customers & experts

Strong Advisory Board

Realistic valuation & projections

Minimal revenue

Committed team

Clear exit strategy

Understanding of the challenges

Competitive landscape analysis

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

BE PREPARED. BE PROFESSIONAL.

Prepared 5-minute pitch (20 slides)One-minute demo video

Have professional online profiles• AngelList• Gust• Crunchbase• FS6• Website

Business plan (5-10 pgs)• Executive summary• Four-year financial

projections• FAQ• Team bios• Term sheet draft

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

DON’T FORGET A DILIGENCE FOLDER

A secure online space where you collect ALL relevant documents and materials for your company.

• Business plans• Financial forecasts and actuals• Articles of incorporation and bylaws• Legal contracts, patents and NDA’s• Sales and marketing materials• Operational documents• Resumes and employment letters

It’s hard to find a lead investor because no one wants to lead diligence. Make it easy for them to say yes.

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

PITCH EVERYWHERE

Find local angel groups and submit a request to pitch

Apply to pitch at local meet-ups

Seek out specialized angel groups if appropriate• Women-focused• E-commerce-focused• Youth-focused• Impact-focused

Present and speak at industry conferences to get connections

Angels like to buy into companies in industries that are familiar to them. Go where they are likely to be.

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

FOLLOW-UP & GET FEEDBACK

Keep potential investors informed about your wins and the struggles you have overcome

• Send out a monthly newsletter to interested parties• Share questions and feedback with all potential angels

Angels like to invest with others they trust. Especially someone they see as expert in the industry.

Listen to feedback. Seek it out. You can’t implement everything, but you need to be open to change especially if you hear the same thing all the time.

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

BE CLEAR ABOUT YOUR ASK

Do you want a lead investor?

How much money do you want as a minimum?

Do you need an advisor? Board member?

What is your valuation?

What’s the minimum you need to move forward?

Always have a starting point, it’s easier to negotiate when your counterpart knows what you’re thinking.

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

You need to

drive the

process

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

IT’S ABOUT STAYING POWER

Volunteer at local Angel groups and/or Startup events

Keep your business moving while fundraising

Create momentum, share your progress

Have coffee with everyone

Pay it forward when you can

BEYOND BOOTSTRAPPING WEBINAR MARCH 2014

QUESTIONS & ANSWERS

1. Click “Raise Hand” button to verbally ask a question

2. OR type your question into the chat box on the left.

Still have questions? Contact us at hello@p2bi.com after the webinar.

Interested in our business funding model or referral program? Learn more at P2Bi.com or contact us at hello@p2bi.com.