This presentation was originally presented by serial entrepreneur and CEO/Founder of 37 Angels, Angela Lee, at the 2015 Project Entrepreneur Summit in Washington D.C. She asked workshop attendees two crucial questions: 1) How do you know when you are ready to boot strap? 2) How do you know when you are ready to fundraise? Participants will gain an understanding of what next steps are right for their business, and how to make smart funding choices based on what stage they are in.
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Fundraising Readiness | So You Think You're Ready to Fundraise?
1. So, You Think You’re Ready To
Fundraise?
Project Entrepreneur
Angela Lee
November 14, 2015
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37 Angels wants to close that gap
13% of angel investors are women
Our Story
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37 Angels yearly snapshot
Train 30-40
Angels
Fund 10-12
companies
Evaluate
2500 startups
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My path
Product Management
Business School
Consulting
Academia
Undergrad
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Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching 101
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Sources of capital
Founders
Company
Revenue
Friends &
Family
VCs &
Angels
Other
• Already investing “sweat equity”
• How long before profitable / break even?
• Most expensive capital to raise
• Gives away equity / control
• Loans, grants, business plan
competitions, strategic investors
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Questions to ask yourself / co-founders
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What does success mean to me?
Can these investors add value?
What is my current situation?
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What to really focus on if bootstrapping
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Cash flow management
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Statement of cash flows
Month 1 … Month 18
Starting cash
Cash in
Cash out
Ending cash
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What to really focus on if bootstrapping
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Scope management
Cash flow management
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What to really focus on if bootstrapping
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Scope management
Failing fast / cheaply
Cash flow management
Don’t be too cheap
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Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching 101
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The 10 pitch slides you need
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6. Business model
7. Customer acquisition
8. Traction
9. Competition
10.Deal terms
1. Elevator pitch
2. Problem
3. Solution
4. Team
5. Market size
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Why your team is the right team
Name, Title
• Accomplishments
• Relevant previous
roles (logos ok)
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Name, Title
• Accomplishments
• Relevant previous
roles (logos ok)
Next key hire
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What is The Market Opportunity?
Differentiate between
• TAM: Total Available Market
• SAM: Serviceable Addressable Market
• SOM: Serviceable Obtainable Market
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Business Model
• How you will make money
• How you will acquire customers
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What we don’t like to hear
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We only have to
capture 1% of the
market!
We’ve done no
marketing!
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B to C example B to B example
How are you acquiring customers?
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Direct email campaign
• Cost to send X emails
• # of opens
• # of clicks
• # of sign-ups
• # that are engaged in x days
• # that pay
• # that are paying in x days
• Cost to acquire customer?
• Value from each customer?
• Best way to attract/engage
customers/
• Salesperson salary = X
• # cold calls a week
• # of demos a week
• # of mtgs with decision maker
• # sales a month
• Timeline to make a sale
• # retained in year 2
• Cost to acquire client?
• Value from each client?
• Best way to attract/engage
customers/
• Understanding of decision maker
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Traction to date
What metrics matter to your business?
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$Y RevenueX Users Z Transactions
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Why your company is special
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Dimension 1
Dimension2
Feature Feature Feature Feature
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Investing Details: Call to Action!
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• Size of your round
• Terms of your round
• What you’ve raised so far
• What money will be used for
• Background of investors (if relevant)
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Investing Details
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$3M valuation
Raising $500K, $300K committed
Funds used for:
• Product development
• Marketing
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Pitching best practices
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• Keep it simple
• Test your pitch
• Pitch the company, not the product
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Questions?
37angels.com
@37angelsNY
@angelawlee