Date post: | 12-Jun-2015 |
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Business |
Upload: | mark-davis |
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What You Need To Know About Raising Venture Capital
Who Is DFJ Gotham Ventures?
Focus Sectors • Digital Media• Financial Technologies• E-commerce
• Mobile Technologies• Network Infrastructure
Early Stage • First institutional round• Nominal or no revenue• Demonstrable technology
Global Presence • Leverage DFJ Network
www.dfjgotham.com 2
DANNY SCHULTZ MARK DAVISROSS GOLDSTEIN THATCHER BELL
Who Does DFJ Gotham Invest In?
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What Is The DFJ Network?
23 funds, >$6 billion in capital150 professionals, 600 portfolio companies
Unique access, insight and deal flow
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Markpeterdavis.com
Chapters:
• VC Overview• Developing A Fundraising
Strategy• Picking The VCs• Preparing Your Materials• The Pre-Fundraising Process• Getting The Meeting• The First Meeting• After The First Meeting• The Due Diligence Phase• Doing The Deal
The Entrepreneur’s
Guide To Raising Venture Capital
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What Makes A Company Successful?
How you finance your company matters!
TeamTeam IdeaIdea FinanceFinance
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Is VC Right For Your Startup?
Scalability of Business
Capital Required to Achieve Breakeven Cash Flow
HighLow
High
Low
VentureCapital
Build a Giant Co
BootstrapOwn 80% of a Small Co
NotViable
Weak Barriers: Venture Capital
Strong Barriers:Bootstrap
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Can Your IT Company Scale?
Technology
Barriers
Examples
• Tech-lite(Old Tech Re-Applied)
• Facebook, eBay, Twitter
• Data scale (e.g., Web 2.0 data)
• Network effects (e.g., SocNets)
• Tech-heavy(New Tech)
• Microsoft Office, Adobe, Skype
• Data scale• Network effects • Econ. Of scale• Intellectual
Property
HybridBusiness
Information Business
Technology Business
• Tech-heavy(New Tech)
• Google, Oracle, Microsoft OS, Akamai
•Economies of Scale•Intellectual Property
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Why VC Is Helpful?
Friends & Family Angels Venture
Capitalists
Capital
Advice
Connections
Low High
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Are You Ready For VC?
Great Team
Huge Market
Product in Market
Seed($50K - $1M)
X
Series A(>$1M – 5M)
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What Materials Do You Need?
Get the meetingExecutiveSummary
Create interestPresentation
Explain howFinancial
Model
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What Topics Do You Need To Cover?
ExecutiveSummaryExecutiveSummary
PresentationPresentation
LocationMission
OverviewAddressable Market
Competitive LandscapeBarriers
AchievementsFinancials
Capital RaisedObjectives
Management Bios
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What Topics Do You Need To Cover?
LocationMission
OverviewAddressable Market
Competitive LandscapeBarriers
AchievementsFinancials
Capital RaisedObjectives
Management Bios
Be sure to include these
Not market size
State why you’re better
May be more than you think
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How Do You Get The Meeting?
Mutual ContactMutual Contact
LinkedInLinkedIn
Cold EmailCold Email
SpamSpam
Most Effective
Least Effective
DirectIntroduction
DirectIntroduction
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What Is The Objective Of The First Meeting?
To get the second meeting.
What is the objectiveof the first meeting?
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How Can You Guide The Meeting?
Product?Product?
Market?Market?
Competition?Competition?
Team?Team?
Typical Non-Linear Meeting Set The Tone Up Front
• Product: Technology that solves…
• Addressable Market: $2.5B
• Competitive: Significant technology barrier
• Team: 35 years relevant experience
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How Can You Maintain Momentum?
Industry NewsIndustry News
MilestonesMilestones
Internal MaterialsInternal Materials
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How Do You Know You’re Close To A Term Sheet?
Can you come meet the rest of
my partners?
Can you come meet the rest of
my partners?
How do you feel about these
terms?
How do you feel about these
terms?
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What Should You Expect In A Term Sheet?
An Exploding OfferExclusivity
30 day Due DiligenceParticipating Preferred Stock
Liquidity PreferenceFounder’s Equity Vesting
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What Happens After The Investment?
On The Same Side Of The Table
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Contact Info
Mark DavisDFJ Gotham Ventures
(212) 279-3980
Blog: markpeterdavis.comtwitter.com/markpeterdavis