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How to Raise Your First roundOr an Insider’s Guide to Venture Capital
Friday, May 23, 14
@adaugelli
@trueventures
adam@trueventures.com
Friday, May 23, 14
Who We Believe In ...
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how VCs think
why venture financing?
the fundraising process
today
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not required• Dell
• Raised money with $60m in Rev
• Siebel
• Customers funded first product
• eBay
• $4.5m in rev before Benchmark
• Broadcom
• No VC money
• SAS Institute
• Largest private company in the world; no
VC money
• Oracle
• Govt contract funded first product
• Cisco
• $5m in rev before Sequoia invested
Friday, May 23, 14
high costs• Takes time away from serving customers
• False sense of security
• May mask underlying flaws in business model
• Potentially removes spending discipline
• Adds additional bosses, incentives
• Changes exit strategy and options
• You’re selling part of your company!
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but can be helpful ...
•Cash to FUEL GROWTH
•Strategic and Operational Advice
• Introductions to Customers, Partners
•Recruiting
•Both indirectly and directly
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how do VCs think?
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build big companies that last
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want to deliver big returns to LPs
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hard to find good deals
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every deal has “hair on it”
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constant flow of new opportunities
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Investors are people too.
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so how do you get a leg up?
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1. Build Trust
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spending lots of time together
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... to the right partner ....
get introduced ...
... from someone they trust ...
the process ...
... at roughly the same time.
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investor context
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faces in the deck
be human
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2. Make it sharable
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first meeting
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fund dynamics
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DO NOT HAVE A 50 PAGE BUSINESS
PLAN
the pitch
Friday, May 23, 14
DO NOT HAVE A 50 PAGE BUSINESS
PLAN
the pitch
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one sentence intro / paragraph for sharing in emails
less than 10 slide deck*
the pitch
financial model (focusing on micro-economics)
DO HAVE:
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Friday, May 23, 14
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faces in the deck
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faces in the deck
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3. Part of the Tribe
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No one wants to be alone.
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Show them the tribe.
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faces in the deck
People. People. People.
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how much money are you looking to raise and why?
why are you raising money now?
4 questions you’ll be asked
what does your business look like at the end of 12 - 18 months?
what is your gross monthly burn over the next 18 months?
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Social Proof (Founder Introductions)
Authority (Customer & Advisor References)
the art of raising money
Momentum (Deals and interest are time sensitive)
remember:
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questions?
Friday, May 23, 14
@adaugelli
@trueventures
adam@trueventures.com
Friday, May 23, 14
http://venturehacks.com/pitching
http://stu.mp/2011/05/howto-spend-your-investors-money.html
http://t.co/gxfau3U (Example Slides)
resources
http://www.askthevc.com
http://www.angel.co
Friday, May 23, 14
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