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www.thesecretofraisingmoney.com Adapted from The Secret of Raising Money: The Entrepreneur's Guide to Getting Funded, by Seth Goldstein and Michael Simpson What is The Secret of Raising Money? The Secret of Raising Money is a book the provides all the information, tools and materials needed to raise capital for your startup. We have distilled years of "in the trenches" knowledge into a book, and supplemented it with financial models, cap table templates and pitch decks that entrepreneurs can use immediately to improve their chances of success. We have included exclusive new interviews with many of the most insightful investors on the subject: Fred Wilson, Josh Kopelman, Danny Rimer, Mark Suster, Naval Ravikant, Mark Goldstein, Brad Feld and Jon Callaghan. Why are we doing this? The cost of starting a company has fallen to almost zero. There are now more founders than ever before, not only in Silicon Valley but all over the world. Early stage capital is abundant. The removal of the ban on solicitation from non-accredited investors is opening the floodgates even wider. Although there is a wealth of information available online, a typical startup CEO has barely enough time to read one blog post about fundraising, much less all of them.
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FUNDRAISING QUOTESWISDOM FROM THE MASTERS19
“That's the secret. Convince yourself that your startup is worth investing in, and then when you explain this to investors they'll believe you.
PAUL GRAHAM
Founder, Y Combinator
“
”#1THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
FRED WILSON
Co-founder, Union Square Ventures
“The fact is that the amount of money startups raise in their seed and Series A rounds is inversely correlated with success.
“
”#2
THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“(on investor meetings) You have a very short amount of time to make a first impression. If you’ve got a long rambling slide deck...you’re done.
NAVAL RAVIKANT
Co-founder, AngelList
“
”#3THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
BABAK NIVI
Co-founder, AngelList
“Create alternatives with focus: pitch and negotiate with all your prospective investors at once. Focus compounds scarcity and social proof, which closes deals.
“
” #4THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“Our most successful companies are led by entrepreneurs who are heat seeking missiles. It doesn't matter where the missile is aimed pre-launch. Successful entrepreneurs are constantly collecting data, looking for bigger targets, adjusting course if necessary. And when they find their target, they're able to lock-onto it — regardless of how crowded the space becomes.
JOSH KOPELMAN Co-founder, First
Round Capital
“
”
#5THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
MARK SUSTERInvestment
Partner, Upfront Ventures
“If you can’t get an intro to a VC, hang up your cleats now. You’re done, GAME OVER.
“”
#6THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“The only thing that we know about financial predictions of start-ups is that 100 percent of them are wrong.
BRADFELD
Co-Founder, Foundry Group
“
”
#7THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
BEN HOROWITZ
Co-Founder, Andreessen
Horowitz
“A lot of VCs say things like, ‘We’re part of the team with you and we’re building this together.’ In reality, the entrepreneur is building the company, and I’ve yet to see a VC who shows up in the company’s office at 8 am and works until 11 pm 7 days/week, so no: they are not ‘part of the team’.
“
”
#8THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“Venture investors seek billion dollar companies.AILEEN
LEE Founder,
Cowboy Ventures
“”
#9THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
PAUL GRAHAM
Founder, Y Combinator
“#10
THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
Investors are pinched between two kinds of fear:
fear of investing in startups that fizzle, and fear of missing out on startups that take off.”
“
“Investors are trying to find the exceptional outcomes, so they are looking for something exceptional about the company.Instead of trying to do everything well (traction, team, product, social proof, pitch, etc.), do one thing exceptionally. As a startup you have to be exceptional in at least one regard.
NAVAL RAVIKANT
Co-founder, AngelList
“
#11THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
”
(on investing) Out of ten swings at the bat, you get maybe seven strikeouts, two base hits, and if you are lucky, one home run. The base hits and the home runs pay for all the strikeouts.
MARC ANDRESSEN
Co-Founder, Andreessen
Horowitz
“” #12
THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“
“(on Google in the early years) We were very focused on becoming profitable from a very early time, which was not true of most companies in the bubble.
MARISSA MAYER
CEO, Yahoo!
“
”#13THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
JON CALLAGHAN
Co-founder, True Ventures
“The best entrepreneurs made me feel like the train was leaving the station whether I got on board or not.
“
”
#14THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“95 percent of VCs add zero value. I would bet that 70-80 percent add negative value to a startup in their advising.
VINOD KHOSLA
Founder, Khosla Ventures
“
”
#15THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
TRAVIS KALANICK
Founder, Uber
“Keep the competitive leads warm, get your deal oversubscribed, because until your deal is done, it’s just a nice fantasy in your head.
“
”#16
THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“It's an old—and true—cliche that VCs rarely actually say ‘no’ — more often they say ‘maybe’, or ‘not right now’, or ‘my partners aren't sure’, or ‘that's interesting, let me think about it’.
MARC ANDRESSEN
Co-Founder, Andreessen
Horowitz
#17
“
THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
”
JASON CALACANIS
Serial Entrepreneur and
Angel Investor
“I get a lot of emails from entrepreneurs. The best ones are short, to the point and include some question and/or the product.
“
”
#18THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
“SHOW ME THE MONEY!JERRY
MCGUIRE Sports Agent
“ ”
#19THE SECRET OF RAISING MONEY:
THE ENTREPRENEUR’S GUIDE TO GETTING FUNDED
LEARN HOW TO MASTER
FUNDRAISING Sign Up Now to Get the Two Tactics You Need to Convince Investors
and a Launch Discount
Send Me the Two Tactics
COMING IN
MARCH 2014
SETH GOLDSTEIN @seth
‣ Raised hundreds of millions of dollars for dozens of companies over the last twenty years
‣ CEO and Co-Founder of DJZ‣ Co-founder at Turntable.FM‣ First EIR at Fred Wilson's Flatiron Partners‣ Angel investor (bit.ly, delicious)
MICHAEL SIMPSON @michaelgsimpson
‣ Co-Founder at DJZ‣ Managed process for $3m debt and equity
capital raise‣ Two years M&A investment banking at
Greenhill & Co‣ Angel investor‣ Yale College
ABOUT THE AUTHORS
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