investor readiness workshop

© StartupCFO Enterprises Inc.

getting your startupinvestor-ready


introductionmark macleod

CFO

Advisor

Investor


thinking about raising capital

BigRichLifestyleAutonomyVision

what are your goals


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


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


fund raising checklist

pro formas investor pitch

executive summary


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


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.


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?


what you must have

Traction…

Users

Usage

Metrics

Feedback


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


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


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


fundraising tips

strategic

what to expect

be preparedtime fundraising to buzzgo local first

you will be rejected (a lot)smaller amounts6 months + (VC)


fundraising tips

play the game

in your corner

love @ 1st sightgo for the “no”create urgency

advisorsno agentsangels are your friends


who’s got money


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


q & a

Questions?


thank you

mark macleodtwitter: @startupcfo

blog: startupcfo.ca

investor readiness workshop

Business

weeks t

week launch

sample timeline

different assumptions

team priorities

key people

investor package

key milestones startup