2. Meet Today’s Moderator
Shahab Kaviani
Co-Founder | CMO, Onevest
• 10+ years as a startup founder
• Previously co-founded
CoFoundersLab and
HyperOffice (exited)
• Raised over $800k – including
a portion via equity
crowdfunding
3. Disclaimer
Securities offered through WealthForge, LLC. Member FINRA/SIPC Onevest
Corporation ("Onevest") is not a registered broker-dealer and does not give
investment advice with respect to any securities. All the startup offerings
listed are offered by the applicable Issuer. Onevest has not taken any steps to
verify the accuracy of the information provided on the offerings that are
listed. Onevest takes no part in the negotiation of the transaction and no
securities are executed through Onevest's platform. Onevest receives no
compensation in connection with the purchase or sale of securities.
Testimonials may not be representative of the experience of all clients.
Testimonials are not a guarantee of future performance or success.
4. CAPABILITIES
STATISTICS
50,000 Entrepreneurs and
Investors
7,000 introductions per month
Companies who have worked
with Onevest have collectively
raised over $100M in funding
Equity crowdfunding
Founder-matching via website
and events
Connecting investors with
promising startups
Free live educational webinars
5. SUCCESSFUL MATCH
SUCCESSFULLY RAISED
Boulder,
CO
Built
their
team
on
Onevest
Techstars
Alumni
AusCn,
TX
Raised
$750K
w/
the
help
of
Onevest
Capital
Factory
Alumni
7. 3 Sources of Capital
Start Here
ITEM FOOLS ANGELS VCS
Full-time Team or Founders - 1 > 2
Proven Domain Expertise - PARTIAL YES
Functioning Prototype - YES YES
Initial Customer Adoption - YES STRONG
Finished Product - - YES
Proven Customer Use Cases - - YES
Monthly Growth >20% - - YES
AMOUNT $25-50K $250-750K $1.5-3.0 MM
8. What to Expect
• 1 Full-time CEO Founder
• 20 Hours per Week
• During All Hours
• 3 to 6 Months
• $5,000 - $15,000 in Legal
• Economics
– Time Invested = 240 Hours
– Earning per Hour = > $1,000
11. The Role of the Lead
• Complete diligence on your company
• Provide credibility to other angel investors
• Set financial terms of the investment
• Provide operating expertise and advice
12. 1. Interest in Your Segment
2. Financial Resources
3. Time & Risk Readiness
25. “Would you be interested in
being an advisor
and leading the round?”
26. Compensate the Lead
• Offer an Advisor Position
– Only AFTER agreement to lead
– Start with off the Board, but Board Possible
• Offer Advisory Shares
– 0.5% to 2.5% in options that vest over 2 year
27. Propose the Terms
• Outline Terms to Lead
– Start with a friendly Convertible Debt Round
• Have Company Counsel Draft Term Sheet
– Reduce the costs of lead’s legal
• Produce the Final Agreements
– Simplify time required to lead
28. Build Buzz
• Plan a Series of Company Internal Milestones
– Ensure updates in a monthly newsletter
• Organize One Public Announcement before Close
– External validation is key, such as partnerships
• Ensure Metrics are Moving Up and to the Right
– Bad performance during fundraising can kill a deal
30. Needed to Close
• Strong company counsel engaged
• Agreed upon Term Sheet
• Minimum closing amount
• Minimum investment amount
• Initial closing date
• Maximum amount with a rolling close
31. The Round Composition
ITEM NUMBER TARGET MIN MIX
Lead Investor 1 1 $50,000 $500,000 +
Large Angels 0 - 5 1 $50,000 $250,000 +
Small Angels 0 - 10 3 $10,000 $25,000
Friends 0 - 3 0 $5,000 $10,000
TOTAL - 5 - 6 $250,000 $500,000
32. Equity or Convertible
ITEM EQUITY CONVERTIBLE
Term Sheet 3 Pages 1 Page
Closing Costs $15 - $25,000 $5 - $15,000
Position Preferred Owner Option
Control Board and Operations Requiring Capital
Negative Hard to Price Equity New
Positive Clear Ownership Easy and Fast
33. Valuation
ITEM LOW HIGH
Pre Money 1,000,000 5,000,000
Raise 150,000 1,000,000
Post Money 1,150,000 6,000,000
Option Pool 10% 20%
Ownership 13.0% 23.1%
Fully Dilluted 12.7% 19.6%
36. Tips
• Be patient and build the relationship
• Don’t ask for investment if “no” is likely
• Investors will say “yes,” but will not fund you
• Practice and refine the pitch constantly
• Don’t give benefits until the deal is done
• Stick to the facts
• Don’t overpromise
