Sources of Investment: Seed, Angels and VC’s Stage (Pre- Round): • Expected to have: • An idea, initial/rough b-plan • Initial founders, key advisors • Path to ??? • Detailed b-plan, • Key founders (bus & tech) full-time • Prototype/alpha done and tested, • Some piloting (paying?) customers, some revenues?, • All legal documentation in place, board of directors • Path to break-even or next funding • Significant variation among firms but…. Angel req. +: - Anchor clients on board, revenue growth (B2B), - Growing base of users, with strong usage trends (B2C) - …..Growth potential! Credible path to $100M Rev • Don’t Expect: • $ Rev, Customers, Minimum Viable Product (MVP); full legal • Income (e.g. cash flow positive); all key management ; completely developed business model (e.g. understand it will • Income (e.g. cash flow positive) Angel Investment Friends and Family Venture Capital “You” aka Bootstrapped Earlier Stage Later Stage Round Size $: • $10’s of K to $100K • $100’s of K to $1M+ • $500K to $1.5M Investment Size $: $5K – $10’s of K • $25K – $75K • $250K-$750K Valuation (Pre-Mon): • < $1 M • $1 – 5 M • $5-10 M “Seed” VC “Traditional Series A” VC • $5M-$15M • $3M – $5M • $10 – 25 M “Seed”
1.Sources of Investment: Seed, Angels and VCs Stage
(Pre-Round): Expected to have: An idea, initial/rough b-plan
Initial founders, key advisors Path to ??? Detailed b-plan, Key
founders (bus & tech) full-time Prototype/alpha done and
tested, Some piloting (paying?) customers, some revenues?, All
legal documentation in place, board of directors Path to break-even
or next funding Significant variation among firms but. Angel req.
+: - Anchor clients on board, revenue growth (B2B), - Growing base
of users, with strong usage trends (B2C) - ..Growth potential!
Credible path to $100M Rev Dont Expect: $ Rev, Customers, Minimum
Viable Product (MVP); full legal documentation Income (e.g. cash
flow positive); all key management ; completely developed business
model (e.g. understand it will change) Income (e.g. cash flow
positive) Who/what are they? People you already know, that trust
you, and (maybe) understand your venture Experienced early stage
investors (individuals or a group) Accredited Investors. Angel
investing is not their job; may not be F/T endeavor E.g.: NY
Angels, GoldenSeeds Firm with multiple professionals that raises,
invests and manages individual funds (other peoples $) Working F/T
(this is their job) Angel Investment Friends and Family Venture
Capital You aka Bootstrapped Earlier Stage Later Stage Round Size
$: $10s of K to $100K $100s of K to $1M+ $500K to $1.5M Investment
Size $: $5K $10s of K $25K $75K $250K-$750K Valuation (Pre- Mon):
< $1 M $1 5 M $5-10 M Seed VC Traditional Series A VC $5M-$15M
$3M $5M $10 25 M Seed
