The F-Word:Funding

Nebojša LazićPartner @ StartLabs Acceleration Fund

http://StartLabs.rs@2klik

Do you need money?Good news:

You don’t need lots of money to create a great startup

Do you need money? Yes. Because what matters is:

• Speed

• Growth

Bad news:

You don’t need lots of money to create a great startup

Bootstrapping

• From your bank account

• Friends & Family

• Banks

• Consulting

• From your customers

• Government (grants)

Crowdfunding• Kickstarter

• Indiegogo

Investors

• Angels

• Incubators/accelerators

• Seed funding firms

• µVCs

• VCs

What Is Investor?

• Money

• A vote of confidence

• A link to another network of investors

• External validation of your business

• Operational experience

Somebody who will help you increase the value of company

Raising Money

• Process, not an event

• Be 100% focused on it

• But for a limited time

• Have a Plan B

• How much money I need?

• Least amount that can get you to execute on a plan (+ little buffer)

How Investors Decide?

25% out of your control - wrong space, wrong size, wrong partner, wrong time

50% - team. Coachable. Smart. Passionate. Credible. Analytical.

25% - market. How big? How saturated it is? How disruptive it is? Competition?25% - execution. Can you get the stuff done? Do you have a plan? Plan B? Why will it work?

Why Do You Need $$$ ?

To eat, pay the rent, buy a computer…

Get a job!

Why Do You Need $$$ ?

I have the best idea in the world but I need a team to build it.

You don't need money. You need to convince people to join your team to make an MVP.

Why Do You Need $$$ ?

I have a prototype, we have done some testing and it's working. We need to hire some sales people to gain initial traction.

You need to sell on your own!

Why Do You Need $$$ ?

I have finished a product. It is AWESOME and everybody loves it! Now I just need money for marketing to bring more users.

NEVER do this!

Say Marketing One More Time

MotherF&%$R!

Why Do You Need $$$ ?

We are doing well in Segment A (KPI) but we need some money to scale our infrastructure and be able to expand to Segment B. We will increase our business by (a number)% by opening in Mexico in the next (a time frame).

This sounds like a plan!

Is traction really that important?

Traction. Rules.

No traction, no $.

End of story.

How important is the pitch?

Very.

You will not raise money on a pitch, but you cannot raise without one.

If you can't communicate your business efficiently, nobody will believe that you can sell to customers.

Should I give 40+ % of my

company for an AWESOME

terms?

No.

You do this, and you're screwed.

For good.

There is no competition in

our market.

You are either lying, or incompetent.

Outsource dev to save costs?

No!

Should I apply to an accelerator?

No.

Unless it is YC, TechStars or 500 Startups.

They will squeeze you, crush you and you’ll end up being un-investable zombie.

What about free money (grants,

etc)

Yes - if it comes with no strings attached + you know how to spend it.

But it never happens! There ain't no such thing as a free lunch!

So: No. (at least not before you get some smart money)

Screwed up cap table / company

structure

• Anything but a Delaware C-corp

• No option option pool

• No vesting schedule

• Shady stakeholders

• More than 40% dilution

Talking to investors?

You are getting

feedback!

LISTEN!