Course on 3-8-16

1. Bootstrapping &
Fundraising
The Founder Institute
Presented by: Nestor Villalobos

2. Methods

3. 1. Bootstrapping
Advantages
•Min Equity Sacrifice
•Liability to Others
•100% Dedicated to Biz
•Spend Wisely
•Customer Focus
Disadvantages
•Growth Speed
•Outside Help
•Personal Risk
•Competition
•Compensation

4. 2. Friends & Family
• Just ASK!!!
• Have a Biz Plan/Exec Sum
• Thanksgiving Dinner (Risk)
• Well Documented (Contracts)
• Create a Email Distribution List

5. 3. Angels
Requirements
•Projections, Pitch Deck
•Business Plan/Exec Sum.
•Skin in the Game
•Experienced Management
•Minimum Viable Product
•Revenue or Rev. Potential
•Coachability

6. 3. Angels (cont.)
Develop a Network
•Create an Investor Database
•Conferences and Events
•LinkedIn
•Referrals
•Articles
•Online Sites (Angel.co, Gust)

7. 4. Venture Capitalists
• Next Stage after Angels
• Will Look for at Least $1m in Sales
• High Equity Stake
• Start Networking @ Startup Stage
• Average Deal > $15M

8. 5. Banks
• Last Stage of Investment
• Low Risk Tolerance
• High Collateral Requirements
• Personal Guarantees
• Requires a Track Record
• Credit Rating Requirements

9. Exit Strategy
• Know Your Exit Strategy
• Sale of the Business or IPO
• Investors Want a ROI
• 3 - 6 Year Holding Period
• Angels Expect 10x+ Returns

10. Milestones
• MVP
• Beta Test
• Time
• Revenue
• Profit
• Growth Rates

11. Milestones (cont.)
How to Choose Milestones
•Ask your Investors!
•Use your Gut
•Brainstorm
•Based on Projections

12. Contact Information
Nestor Villalobos
nes@nestorv.com
www.nestorv.com (LinkedIn)
www.nestorvillalobos.com (Blog)