Download - Investor Readiness Workshop
© StartupCFO Enterprises Inc.
getting your startupinvestor-ready
© StartupCFO Enterprises Inc.
introductionmark macleod
CFO
Advisor
Investor
© StartupCFO Enterprises Inc.
thinking about raising capital
BigRichLifestyleAutonomyVision
what are your goals
© StartupCFO Enterprises Inc.
do I want outside capital?
time consumingpros cons
move quicker
think bigger
strategic freedombuild a teamaccess smarts
loss of control
failure ratealignment issues
forces a big outcome
© StartupCFO Enterprises Inc.
how much do I need?
stage amountkey
milestonesstartup $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
© StartupCFO Enterprises Inc.
fund raising checklist
pro formas investor pitch
executive summary
© StartupCFO Enterprises Inc.
fund raising checklistThe 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
© StartupCFO Enterprises Inc.
fund raising checklistThe investor pitch & executive summaryAbout your company
TeamProblemMarket (size, landscape,
competition)
Your SolutionBusiness ModelGo-to-MarketForecastUse of ProceedsSummary
tell a story about the problem
you solve.
© StartupCFO Enterprises Inc.
what you must knowBusiness - 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?
© StartupCFO Enterprises Inc.
what you must have
Traction…
Users
Usage
Metrics
Feedback
© StartupCFO Enterprises Inc.
sample timeline
prep your investor package & make your hit list
practice, practice, practice
parallel, not serialsend out your teaserbook meetings
t-minus 2 - 4 weeks
t-minus 1 week
Launch
© StartupCFO Enterprises Inc.
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
© StartupCFO Enterprises Inc.
sample timeline
ALL PARTNERS MEETING
term sheet
docs & closing
week 9
week 10
weeks 11-15
sleep!
week 16
© StartupCFO Enterprises Inc.
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
© StartupCFO Enterprises Inc.
fundraising tips
strategic
what to expect
be preparedtime fundraising to buzzgo local first
you will be rejected (a lot)smaller amounts6 months + (VC)
© StartupCFO Enterprises Inc.
fundraising tips
play the game
in your corner
love @ 1st sightgo for the “no”create urgency
advisorsno agentsangels are your friends
© StartupCFO Enterprises Inc.
who’s got money
© StartupCFO Enterprises Inc.
resources
www.oce-ontario.org/Pages/CInvest.aspx
www.angelinvestor.ca/Find_Angels.asp
www.extremevp.com/extreme-university-2010
www.askthevc.com/blog/index.php
cdixon.org
venturehacks.com
© StartupCFO Enterprises Inc.
q & a
Questions?
© StartupCFO Enterprises Inc.
thank you
mark macleodtwitter: @startupcfo
blog: startupcfo.ca