It all starts with you. And FFF!Hold your breath as long as possible.

Pre-Seed How long are (were) you

bootstrapped?

Why?

What worked?

What didn’t?

15

Minute

Exercise

Seed Capital

Ideation

Stage

initial

research and development

Angel Investors

Usually individuals with successful exits who

decide to invest money in other startups

High net worth individuals who decide to

invest in companies due to the lucrative growth

potential and better returns

Angels often invest their own money and at

one of the most riskiest stages for startups

There are several platforms such as these, to

tell you more about angel networks:

AngelList

FundersClub

SeedEquity Ventures, LLC

Syndicate Funding

syndicate

deals

angels lead investments

individual investors

to join

Crowd Funding

Donation-based rewards-based

many

donors

don’t get any equity

crowdfunding platforms

GoFundMe

Kickstarter

IndieGoGo

Equity Crowd-Funding

A variant of crowdfunding

Allows founders to give investors an equity in

the company

Equity crowdfunding was allowed in several

countries in Europe, Asia Pacific but was

banned in US. Latest SEC ruling lifted the ban

and allows equity crowdfunding in US as

well.

Notable equity crowdfunding platforms

include:

Crowdfunder

Seedrs

WeFunder

Accelerator Programs

Fixed-term, cohort-based programs that

provide mentorship, guidance, space and

connections and culminate in a public pitch

event or demo day

Selection process is highly competitive

Teams which get selected get an investment of

$10K - $25K in exchange for equity

Few accelerators such as Microsoft Ventures

don’t ask for equity

Some of the well-known accelerators include:

Y Combinator

AngelPad

Techstars

Incubators

Incubators provide capital and office space.

Also, other services such as business

development support, marketing, advice on

strategy and branding, etc.

Unlike accelerators there’s no fixed date for

graduation.

P2P Lending Platforms

Lately, there’s been a surge in peer-to-peer

(P2P) lending platforms.

They provide loans at lower interest rates

than most market conditions, helping investors

and startups at the same time.

A few notable platforms include:

Funding Circle

Prosper Marketplace

Lending Club

Series A

Figure out or scale distribution

Scale geographically or across verticals

Create partnership, evolve newer business model

Depending upon the geography; anything

upwards of $2 million with a median of $3-$7

million

Established venture funds (Sequoia, A16Z,

Benchmark, Accel, Greylock, Battery, CRV, Matri,

etc.) and corporate venture capitalists

Syndicated angels/super-angels may invest

Series B

Hyperscale

Usually upwards of several million dollars

Usually follow-on funding from existing investors

plus newer players.

Some additional firms who specialize in later

stage deals such as IVP, GVVC, Meritech, DAG,

among others.

Series C and Onwards

Go global

Acquire smaller players

Can range from tens to hundreds of millions

Can be driven by the folks mentioned for Series A

or B or:

Private equity firms

Hedge funds

The mezzanine or late stage arms of Goldman Sachs,

Morgan Stanley, and other investment banks

Big secondary market firms such as DST or Tiger

Venture Capital 101

• M&A or IPO

Exit

• Series “C” and beyond

• Commercialization, expansion and acquisition

Later

Rounds• Series “B”

• Product Development

• Collaborations and Customers

• Clear Intellectual Property Strategy

Second

Round

• Series “A”

• Feasibility stage

• First “institutional” roundFirst Round

• Ideation stage

• Small or No capital

Seed/Pre-Seed

Round

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