Equity Fundraising webcast july 23 2015

© Copyright Society3 - 2015#Society3
Online Equity Fundraising
Everything You Need to Know
#Society3

2© Copyright Society3 2015 Copying or distribution is prohibited
#Society3
San Francisco, CA + 1 (650) 384-0057
Cannes, France + 49 (30) 2023-8748
Society3 Group – http://Society3.com - http://XeeMe.com/Society3
© Copyright Society3 - 2014
Unique 360° startup offering
S3 Pitch Events growing community by 200
startups per month
S3 Accelerator provides intense six week program
in San Francisco and Berlin
S3 FundersMart, the most advanced equity
fundraising platform (exit anytime – smart money)
Alliances with partners and sponsors providing
additional programs and services

#Society3
Our Own Story
Pioneered Online Equity Fundraising in 1997
Raising our initial round from partners and customers
Over 100 investors signed up and we oversubscribed
Raised 3 consecutive rounds – the largest: $5Million
We offered anybody to sell if they needed to
Even investment funds loved the concept
Four years experience incl. investor relations
Raised money for four companies (all successful)
Mentioned in dissertations, Financial Times…
as inventor of equity based crowd funding

#Society3
CapitalizationStrategy
Still own 50.1% by the time you IPO
Give no more than 15% in seed rounds
Keep 70% after the a-round …

#Society3
How could the Facebook team retain majority?

#Society3
A $100 Million exit - BUT
It’s not about being greedy
It’s not about being a control freak
But you need to be able to steer your business

#Society3
No matter what investors tell you
It is NOT better to have
10% of a $100 Million company than
100% of a $1 Million company
Once investors take over the company the
company is going to be sold or merged with
99% probability

#Society3
Structure your rounds before you go
Seed 15% 85% | 25% 75%
A 15% 72% | 25% 56%
B 10% 65% | 30% 39%
C 8% 59% | 20% 31%
D 6% 56% | 15% 26%
E 3% 54% | 10% 24%
IPO

#Society3
BePrepared

#Society3
10 Tips For Fundraising Success
Getting $250,000+ funding goal
Have a bold vision
Have an amazing team
Have a stellar video from founders and team
Positive customer/user sentiments online
Have a clean cap table
Know exactly how much you need and why
Have the use of proceeds clearly defined
Build an active investor relationship
Mobilize your investors to support you
Provide weekly updates to investors

#Society3
Due Diligence Process
Legal due diligence
Conducted by one of our lawyers
Incorporation documents, tax filings
Business due diligence
Team composition
Online presence and sentiments
Technical due diligence
Only for growth stage companies
Technical review through experienced CTOs

#Society3
FundraisingOnline

#Society3
How much can be raised
We raised $5 Million already in 1998
There are limits by program
US $5 Million round under Title II (Filing Form D)
$20 / $50 Million under Title IV (More regulations)
A $50 MM round ~ a quarter billion valuation
SEC calls Title IV tier II Mini-IPO
Follow on rounds same size
This is in particular interesting down the road

#Society3
What stage?
Idea Stage very very few investors
Concept stage few investors
Build / Beta stage some investors
Traction stage most interesting investors
Growth stage most investors
Expand stage Conservative investors

#Society3
Fund Raising
Preparation
Know how much you need – never ask for more
Have your story perfectly down
Have all your financials prepared
Ready for a due diligence
Have a perfect deck for a 5 minute presentation

#Society3
Timing
Angel Fundraising is quite an intense project
Expect 4 weeks preparation
Expect to be 8 weeks on tour presenting !!!
Expect 4 weeks individual due diligence,
negotiation, legal process and funding completion
Somewhere between 10 to 100 pitches
Online fundraising process
Expect 4-6 weeks preparation & due diligence
Expect 4 weeks for the first part of funding

#Society3
In search of investors
Hard to find
Hard to get a deal done
To o few out there

#Society3
A New Investment Marketplace
Investors need a smarter way to
“Exit Anytime”
Startups need a better way to get
“Smart Money”

#Society3
Financial Services
Transformation
From lockup to Exit Anytime
Paving the way for a new exit model
Quadrupling investor network for entrepreneurs
Opening the 90% accredited investors segment
A market place where shareholders find buyer

#Society3
Smart Money Matcher
From random to Smart Money
Profiling system that help startups find Smart Money
Investors with access to their industry, ability to
weave connections, subject matter expertise…

#Society3
FundersMart

#Society3
Opening doors for 95% of accredited investors
Exit Anytime
Smart Money Matcher
From commission to subscription
Starting in June
FundersMart

#Society3
Your company will shape up much faster
With a broader investor landscape
Expect 30 investors helping you instead of 3
Expect 0.5% ownership per investor not 10%
Expect smart money because you can select
Expect a faster process

#Society3
Next steps?
1. Grab any of us (415) 656-8700 or online
gofundersmart@society3.com
@Society3grp | fb.com/society3
2. If you are going fundraising any soon, we’ll
work with you individually to help you get
ready beyond the pitch 

#Society3
Society3.com/presentations

#Society3
© 2015, Society3. all rights reserved. This content is protected under the copyright law of the United States. It is prohibited to make full or
partial copies or extractions of this documentation without the explicit written approval from the Society3 Group Inc.
S3 Accelerator, a Society3 organization | 201 Mission St, S1200 | San Francisco, CA 94105 | (650) 384-0057
+1 (415) 656-8700
society3.com/AxelS
Society3.com
Online presences:
http://society3.com/society3

#Society3
By building harbors and aqueducts, Pharaoh Ramses was first in
creating unimaginable wealth. Role model for all Kings and Caesars
for nearly 5,000 years. (Society1)
In the industrial revolution incremental value created unimaginable
wealth for tens of thousands of people (Society2)
Millions of startups will create even more incremental value, now all
over the world and unimaginable wealth for everybody (Society3)
From one – to many – to all
What gave us the name Society3

Equity Fundraising webcast july 23 2015

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Equity Fundraising webcast july 23 2015