Download - Investor readiness presentation

© Real Ventures

getting your startup investor-ready

© StartupCFO Enterprises Inc.

introduction mark macleod

CFO

Advisor

Investor


Agenda

Raise vs Not Angel vs VC Seed / Angel Canvas VC Canvas Process Who’s got bucks?


thinking about raising capital

Big Rich Lifestyle Autonomy Vision

what are your goals


do I want outside capital?

time consuming pros cons

move quicker think bigger strategic freedom build a team access smarts

loss of control failure rate

alignment issues forces a big outcome


angels & VCs

Strained relationship

Same end goal: returns

Need different approaches for each

Very different needs & objectives

Angel - time to break-even, year 1 burn, capital efficiency

VC - opportunity size, team

Priorities


how much do I need?

Next Value Creating Milestone

Simple….

With wiggle room…


how much do I need?

stage amount key milestones

start $0-50K prototype, wireframe & customer development

seed < $500K launch of beta product & early traction

Series A $1.5M + growth in user base, build team, start revenue

Series B $5M + serious growth, commercialization


Raising - Seed VC / Angels


Seed VC Canvas


fund raising checklist – Seed, VC

ü  Prototype / Wireframes / MVP ü  Investor pitch ü  Executive summary ü Clear Ask /Milestones


Raising VC


Big VC Canvas


fund raising checklist - VC

ü  Pro formas ü  Investor pitch ü  Executive summary ü  Traction & Validation


fund raising checklist The pro forma typically includes:

core financials

assumptions

hiring plan

department plans

capital expenditure plan

bonus... per user economics

break-even point

key metrics

test different assumptions

involve key people

play w. revenue scenarios


fund raising checklist The investor pitch & executive summary

About your company Team Problem Market (size, landscape, competition)

Your Solution Business Model Go-to-Market Forecast Use of Proceeds Summary

tell a story about the problem you solve.


what you must know

Business - what makes you unique?!Industry - key motivation for buying your stuff!Numbers - metrics, financials, cash burn!Comparables - competition, relevant exits!Strengths & Weaknesses - don’t hide them!!Strategy - how will you build a big, valuable business?!Audience - why are you pitching me?!Needs - how much money until exit?!


what you must have

Traction…

Users

Usage

Metrics!Feedback!


sample timeline

prep your investor package & make your hit list

practice, practice, practice

parallel, not serial send out your teaser book meetings

t-minus 2 - 4 weeks!

t-minus 1 week!

Launch !


sample timeline

1st meetings, feeling-out process

2nd meetings, in person with more than 1 partner

early diligence

weeks 2 & 3!

weeks 4 & 5!

weeks 6-8 !


sample timeline

ALL PARTNERS MEETING

term sheet

docs & closing

week 9!

week 10!

weeks 11-15!

sleep!

week 16!


fundraising tips

strategic

what to expect

be prepared time fundraising to buzz go local first

you will be rejected (a lot) smaller amounts 6 months + (VC)


fundraising tips

play the game

in your corner

love @ 1st sight go for the “no” create urgency

advisors no agents angels are your friends


Angel Groups

Good, but sometimes…


who’s got money

http://www.markevanstech.com/2012/10/03/canadian-startup-infographic/


q & a

Questions?


thank you

mark macleod twitter: @startupcfo

blog: startupcfo.ca

Download - Investor readiness presentation

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