Is your startup venture ready? This presentation was for Seattle Startup Week 2019 and is an overview of Fundraising 101, 13 slides for startups, The 16 Business and Revenue Models for Startups

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DKParker, LLC
2017
#SSW2019 Funding Readiness
Dave Parker
@DaveParkerSEA
www.dkparker.com/blog
Dave@dkparker.com
@DaveParkerSEA

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DKParker, LLC
2017
Agenda
¤ About Dave
¤ Venture Ready?
¤ Business & Revenue Models
¤ Fundraising 101
¤ 13 Slides
¤ Q&A

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DKParker, LLC
2017
About Dave
¤ 5X founder, Board Member, former SVP Programs at UP
Global (Startup Weekend + Startup America)
¤ Startup Next creator
¤ Startup Week
¤ Author – soon to launch “6 Month Startup – Ideation to
Revenue” – New Cohort Starts November 13
¤ 9 transactions – 7 sell side, 2 buy side
¤ VC/Investor

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DKParker, LLC
2017
Blog
Venture Ready Score

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DKParker, LLC
2017
Score Yourself 1-4
Team: Why you, balanced team (talents, diversity), domain experts,
serially successful founders, great company experience
Idea: Are you solving a problem? New or existing problem, big category
(vs tool), early/late continuum, technical achievable, pain pill or vitamin
Product: do you have a product, how mature, customer first, solid design,
clear roadmap to scale
Market/Customer: big market (TAM/SOM), cash available, new or nascent
market?
Competition: How many incumbents, funding status, are you incremental
better or 10X better?
Traction: Customer validation, revenue, improving unit economics?
Timing: Why now? Are you late, early, too early?
Revenue Model/Finance: How will you monetize your idea? Do you have
a basic budget on spending, big or small economics
IP/Moat: Is your idea defensible? Can you build a moat over time?
Clear Ask: What do you need help with? Advice, funding, introduction,
help finding staff?
Total out of 40

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DKParker, LLC
2017
Venture Ready
Fast NO
¤ Market
¤ Team
¤ Product
¤ Traction
Slow Yes
¤ Idea
¤ Competition
¤ Business Model/Finance
¤ Timing
¤ Intellectual Property/Moat
¤ Clear Ask

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DKParker, LLC
2017
Breaking Down Business &
Revenue Models

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DKParker, LLC
2017
Creating
Value:
Product,
Team &
Market
Business Model

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DKParker, LLC
2017
Capturing
Value:
Reasonable to
Exceptional
Returns –
Traction & Idea
Business Model

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DKParker, LLC
2017
Delivering
Value:
Price,
Economics,
S&M
Business Model

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DKParker, LLC
2017
Creating Value:
Product
Delivering
Value: Price,
Economics,
S&M
Capturing
Value
Reasonable to
Exceptional
Returns
Defining Business Model

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DKParker, LLC
2017
Creating Value:
Product
Delivering
Value:
Marketing
and Sales
Capturing Value
Reasonable to
Exceptional
Returns
Defining Business Model

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DKParker, LLC
2017
Revenue Models

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DKParker, LLC
2017
Summary – Pick Two (Primary & Secondary)
1. Fee for Servicer
2. Commerce
3. Subscription
4. Productize a Service
5. Transaction Fee/Rental
6. Lead Generation
7. Gaming
8. Marketplace
9. Advertising/Search
10. New Media
11. Combinations
12. Coins Tokens
13. Multi-sided Marketplaces
14. Big Data
15. Panels
16. Licensing
Blog Post

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DKParker, LLC
2017
Fundraising 101

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DKParker, LLC
2017
Fundraising 101
● Stage appropriate capital = what’s the right
money at the right time?
○ Early – Angels, early stage VCs,
○ Later – Large venture funds
● Control shifts – Board roles, deal terms
● Dilution: every round of funding you will sell 25-
35% of new shares

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DKParker, LLC
2017
Raising for What?
¤ 18 months of runway
¤ Not too short
¤ To hit milestones
¤ Product
¤ Customers
¤ “Use of proceeds”

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DKParker, LLC
2017
Early Stage = Risk Capital
● Know your numbers, if you don’t have your numbers
know your hypothesis (have a position)
● Seed stage VC’s are investing other people's money
○ Charter and Thesis
○ Stage, vertical market, size, geography
○ 10% (+/-) stakes plus syndicates
● VC perspective - Elusive deals need to be found
○ Revenue but Pre-product market fit
● ”Return the Fund” deals that can produce >10X

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DKParker, LLC
2017
Later Stage = Growth Capital
● Post product market fit
● $10K in marketing spend = Internal rate of return (IRR) of
how many days?
● MBA’s calculate returns – cash on cash
● Strategics aren’t valuation sensitive, but will be slow
● Bigger checks – 20% stakes

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DKParker, LLC
2017
13 Slides

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DKParker, LLC
2017
13 Slides for Your Pitch
1. Title, Value Proposition,
Contact Info
2. Presentation Overview
3. Traction
4. Problem/Solution
5. Market
6. Timing
7. Product Roadmap/Demo
8. How You Make Money/Key
Metrics
9. Go-To-Market
10. Secret Sauce/Moat/IP
11. Team
12. Competitive Analysis
13. Clear Ask
Blog Post

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DKParker, LLC
2017
Tools for Pitching
¤Forwardable Email - Great blog post
from Alex Iskold, Techstars NYC
¤Executive Summary
¤Presentation
¤ ~13 Slides
¤ More is OK if you have data/traction
¤Monthly Update

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DKParker, LLC
2017
Don’t Be Boring
Fake Grimlock

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DKParker, LLC
2017
Q&A
6 Month Startup – November 13 @ Perkins Coie

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DKParker, LLC
2017
THANKS!