Date post: | 12-Jan-2015 |
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Business |
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© Real Ventures
getting your startup investor-ready
© StartupCFO Enterprises Inc.
introduction mark macleod
CFO
Advisor
Investor
© StartupCFO Enterprises Inc.
Agenda
Raise vs Not Angel vs VC Seed / Angel Canvas VC Canvas Process Who’s got bucks?
© StartupCFO Enterprises Inc.
thinking about raising capital
Big Rich Lifestyle Autonomy Vision
what are your goals
© StartupCFO Enterprises Inc.
do I want outside capital?
time consuming pros cons
move quicker think bigger strategic freedom build a team access smarts
loss of control failure rate
alignment issues forces a big outcome
© StartupCFO Enterprises Inc.
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
© StartupCFO Enterprises Inc.
how much do I need?
Next Value Creating Milestone
Simple….
With wiggle room…
© StartupCFO Enterprises Inc.
how much do I need?
stage amount key milestones
start $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
© StartupCFO Enterprises Inc.
Raising - Seed VC / Angels
© StartupCFO Enterprises Inc.
Seed VC Canvas
© StartupCFO Enterprises Inc.
fund raising checklist – Seed, VC
ü Prototype / Wireframes / MVP ü Investor pitch ü Executive summary ü Clear Ask /Milestones
© StartupCFO Enterprises Inc.
Raising VC
© StartupCFO Enterprises Inc.
Big VC Canvas
© StartupCFO Enterprises Inc.
fund raising checklist - VC
ü Pro formas ü Investor pitch ü Executive summary ü Traction & Validation
© StartupCFO Enterprises Inc.
fund raising checklist The 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
© StartupCFO Enterprises Inc.
fund raising checklist The investor pitch & executive summary
About your company Team Problem Market (size, landscape, competition)
Your Solution Business Model Go-to-Market Forecast Use of Proceeds Summary
tell a story about the problem you solve.
© StartupCFO Enterprises Inc.
what you must know
Business - 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?!
© StartupCFO Enterprises Inc.
what you must have
Traction…
Users
Usage
Metrics!Feedback!
© StartupCFO Enterprises Inc.
sample timeline
prep your investor package & make your hit list
practice, practice, practice
parallel, not serial send out your teaser book meetings
t-minus 2 - 4 weeks!
t-minus 1 week!
Launch !
© StartupCFO Enterprises Inc.
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 !
© StartupCFO Enterprises Inc.
sample timeline
ALL PARTNERS MEETING
term sheet
docs & closing
week 9!
week 10!
weeks 11-15!
sleep!
week 16!
© StartupCFO Enterprises Inc.
fundraising tips
strategic
what to expect
be prepared time fundraising to buzz go local first
you will be rejected (a lot) smaller amounts 6 months + (VC)
© StartupCFO Enterprises Inc.
fundraising tips
play the game
in your corner
love @ 1st sight go for the “no” create urgency
advisors no agents angels are your friends
© StartupCFO Enterprises Inc.
Angel Groups
Good, but sometimes…
© StartupCFO Enterprises Inc.
who’s got money
http://www.markevanstech.com/2012/10/03/canadian-startup-infographic/
© StartupCFO Enterprises Inc.
q & a
Questions?
© StartupCFO Enterprises Inc.
thank you
mark macleod twitter: @startupcfo
blog: startupcfo.ca