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Financing Your IdeaFinancing Your IdeaCharlie KiserChief Reality OfficerSellStrategy Consulting
SummarySummaryCycle of Fund RaisingTypes of Fundable Businesses Who are the Investors?Trends In Early Stage FinancingState InitiativesHow do I get started?Startup Resources
Cycle of Fund RaisingCycle of Fund Raising
Bootstrap – Self Funded $5-50KFriends and Family - $25-100KSeed Stage/Angel Investors - $50-250K
◦Incubator/Accelerator $25-50K“A Round” Venture Capital – $300-2mm“B Round/Follow On” Venture Syndicate
-$2mm-5mm“C Round” $10mm-50mm, (Revolution)Exit – IPO, Acquisition
Types of Fundable Types of Fundable BusinessesBusinessesDisruptive ideas that address a
scalable market and have global impact or reach
Ideas that challenge existing structure that has been resistant to change
Health IT, Education, Policy/Politics, Cloud Big Data, Security
NOT Fundable – Lifestyle Business- Salon, Retail, Coffee Shop, Food Truck, Services, Staffing.
Who are the Investors?Who are the Investors?Angel InvestorsAngel InvestorsInterested in Ideas they are familiar
withLike to Invest where they also add
valueOften have sold business but are in
holding patternWill come in after Lead Investor has
issued term sheetWhere are they? Dingman Center,
Pitch Events, Tech Meetups etc.
Who are the Investors?Who are the Investors?Incubator/AcceleratorIncubator/AcceleratorOffer mentorship and hands on
assistanceProvide $25-50K in exchange for < 10%
stake in businessRequire a 2-6 month commitment on siteSome fee for space usageWork to help build team and get tractionPromote to other VCsGood for inexperienced startupsAcceleprise, Fishbowl Labs, The Fort,
1776
Who are the Investors?Who are the Investors?Venture CapitalVenture CapitalInterested in Team, Product and
MarketWant to be the “first mover”Work with other VC’s to arrange
syndicateOffer first Valuation of your
businessGrotech, CORE, Revolution, In-Q-
Tel, Valhalla, New Markets, NEA
Trends In Early Stage Trends In Early Stage FinancingFinancing
Traditional Venture Cap is changingAngel Investors taking larger rolesCost of development is shrinkingJOBS Act opening door to
crowdfunding, general solicitation and potential access to public markets
Incubator/Accelerator Overload
State InitiativesState Initiatives
◦CIT Gap Funds- ◦State Initiative funding VA based startups- Act as Angel and VC◦Jennifer Daniels
◦InvestMaryland◦Raised $84 MM for MD based startups. Leveraging VC’s and state agencies to disperse funds
How do I get started?How do I get started?
Exercise your IdeaDevelop prototype product or
serviceFind initial traction – “Ties for Rent”ITERATEShare your idea- harness the
“human cloud”PitchQuit your job, commit and don’t
look back!
ResourcesResourceswww.fosterly.com - Adam
ZuckermanDc Tech Meetup – Peter CorbettTech Cocktail tech.co – Frank GruberTechCrunchMashableAngel.co, AngeListPaul Singh, Jonathon Perrelli, Evan
Burfield, Glen Hellman
Charlie [email protected]@charliekiser