raising angel money

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seedchange

Raising Angel Money #angelmoneyAbout Your Hosts

Kevin SmithFounder and CEOErika MalzbergChief Marketing Officer

Whos an angel? High/Very high net worthLive in tech hubsTypically invest locallyWell-educatedPart-time investorSees 50-250 startups/yearMay be member of angel group

www.seedchange.com What kind of companies do angels invest in? Companies who are in seed or early stageDiverse: In technology, clean tech, fin tech, healthcareLooking for: Solve a problem, management team, IP, business model

www.seedchange.com

How do entrepreneurs connect with angels? Full time, 12 hours/day, 4-6 monthsRely on your networkMust have persistence and outstanding communications skillsObjectivesGet introductions to 100-250 investorsMeet 50-100 investorsFollow up with 25-75 investorsConduct diligence process with 25-50 investorsGet checks from 8-15 investors

Questions angels askProductWhats your business about? Why will people use your product?How do you make money?MarketHow big is your market? Whos your competition? Distribution?Have you talked to customers? Product-market fit? TeamHow did the founders meet?Who is on (and not on) your team?RisksWhat is the biggest problem you need to solve now?Technology and IPFundingJustification/Use of FundsMilestonesFinancial projectionsThink ahead to Series Awww.seedchange.comQuestions angels dont ask(but theyre really thinking!) Do the founders like each other?Do I trust you?Can you sell?Can you build a team?Can we work together?Is anyone else going to invest?Why isnt XYZ going to crush you?www.seedchange.com

Non-rational criteria www.seedchange.com Angel decision-makingtimeline ContactMeeting #2Meeting #5Meeting #6Meeting #3Meeting #1Meeting #4 DUE DIIGENCE

$ TERMS INTERESTwww.seedchange.comExpected time frame4-6 monthsdating Decision-making process Elevator pitchPitchdeckFounder infoProductMarketBusiness modelCompetitionDomain expertiseIntelligenceCommunication skillsPersistence IntegrityRelationshipCustomerMarket sizeCompetitionProb/SolutionTractionProduct-Market fit

Product overviewMarketProductwww.seedchange.comFinancials 3-5 year plan Decision-making process TechFinancialsDealLegalTech teamUse of fundsMilestonesGrowth planAmountTermsInvestorsRegulatory threatFormationStock IP

www.seedchange.comFinancials 3-5 year plan Funding Pitch Guidelines Tell a storyProblemSolutionMarket sizeBusiness modelCompetitionIPTeam10-12 slides maximumOne key point/slide: Backup data in appendixDont read it from slides

www.seedchange.com

ValuationsWhat is the valuation of my startup? Based on traction Based on geographical compsEntrepreneur ask vs investor tell?

www.seedchange.comYC3-5Q&A and Thank You!Kevin Smith415 Jackson StreetSan Francisco, CA 94111www.seedchange.cominfo@seedchange.com1.877.711.9883@seedchange

Erika Malzbergwww.earlygrowthfinancialservices.comcontact@earlygrowthfinancialservices.com415.234.3437@EarlyGrowthFS