Presentation about how to go about raising angel capital when you can no longer bootstrap your business. Run by Krista Morgan, Co-Founder of P2Binvestor & Bryn Weaver, Startup Lawyer. Linked to a webinar which can be found here: http://bit.ly/1pA9AU8

1. BEYOND
BOOTSTRAPPING
WHAT TO DO WHEN YOU CAN
NO LONGER GO IT ALONE.
© 2013, P2Binvestor Inc. All Rights Reserved.
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2. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
PRESENTED BY
Krista Morgan
Co-Founder & COO
P2Binvestor
SPECIAL GUEST
Bryn Weaver
Weaver Law LLC

3. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
BOOTSTRAPPING
PROS
• Fundraising is time
consuming
• Focus on the product
• No equity dilution
• Lean startup mentality
• Profitability is key
• No investor
management
CONS
• Slower growth
• Free is harder to
come by
• Fewer staff, restricted
hiring options
• All-consuming focus
on cash management
• No investor support

4. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
BOOTSTRAPPING ISN’T ALWAYS
POSSIBLE
Lack skills to develop product
Large up front costs required
Idea requires expert or large team
Prototype or Beta not easy to achieve
First mover advantage is critical
Credibility of fundraising needed to land contracts

5. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
TYPES OF CAPITAL
Equity / Convertible Debt
• Friends & Family
• Incubators
• Angels
• Venture Firms
Personal debt
Private debt
Commercial debt
• Microloans
• SBA Loans
• Working Capital loans
• Equipment financing
Pre-selling product
• Crowdfunding
Grants

6. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
ANGEL EQUITY OR CONVERTIBLE
DEBT
Angels Provide ~90% of
Outside Equity for
Startups
Review approx. 30 deals
per month out of 75K
applications per year
http://www.sec.gov/info/smallbus/acsec/acsec-091713-verrill-hudson-slides.pdf

7. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
THINGS ANGELS LIKE TO SEE
Clear business outline
Prototype and/or Beta
Testimonials from customers & experts
Strong Advisory Board
Realistic valuation & projections
Minimal revenue
Committed team
Clear exit strategy
Understanding of the challenges
Competitive landscape analysis

8. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
BE PREPARED. BE PROFESSIONAL.
Prepared 5-minute pitch
(20 slides)
One-minute demo video
Have professional online
profiles
• AngelList
• Gust
• Crunchbase
• FS6
• Website
Business plan (5-10 pgs)
• Executive summary
• Four-year financial
projections
• FAQ
• Team bios
• Term sheet draft

9. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
DON’T FORGET A DILIGENCE FOLDER
A secure online space where you collect ALL relevant
documents and materials for your company.
• Business plans
• Financial forecasts and actuals
• Articles of incorporation and bylaws
• Legal contracts, patents and NDA’s
• Sales and marketing materials
• Operational documents
• Resumes and employment letters
It’s hard to find a lead investor because no one wants to lead
diligence. Make it easy for them to say yes.

10. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
PITCH EVERYWHERE
Find local angel groups and submit a request to pitch
Apply to pitch at local meet-ups
Seek out specialized angel groups if appropriate
• Women-focused
• E-commerce-focused
• Youth-focused
• Impact-focused
Present and speak at industry conferences to get
connections
Angels like to buy into companies in industries that are
familiar to them. Go where they are likely to be.

11. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
FOLLOW-UP & GET FEEDBACK
Keep potential investors informed about your wins and the
struggles you have overcome
• Send out a monthly newsletter to interested parties
• Share questions and feedback with all potential angels
Angels like to invest with others they trust. Especially
someone they see as expert in the industry.
Listen to feedback. Seek it out. You can’t implement
everything, but you need to be open to change especially if
you hear the same thing all the time.

12. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
BE CLEAR ABOUT YOUR ASK
Do you want a lead investor?
How much money do you want as a minimum?
Do you need an advisor? Board member?
What is your valuation?
What’s the minimum you need to move forward?
Always have a starting point, it’s easier to
negotiate when your counterpart knows what
you’re thinking.

13. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
You need to
drive the
process

14. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
IT’S ABOUT STAYING POWER
Volunteer at local Angel groups and/or Startup events
Keep your business moving while fundraising
Create momentum, share your progress
Have coffee with everyone
Pay it forward when you can

15. BEYOND BOOTSTRAPPING WEBINAR MARCH 2014
QUESTIONS & ANSWERS
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2. OR type your question into the chat box on the left.
Still have questions? Contact us at hello@p2bi.com
after the webinar.
Interested in our business funding model or referral
program? Learn more at P2Bi.com or contact us at
hello@p2bi.com.