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Learn how to raise capital for your startup with Lili Balfour! Lili Balfour is the founder and CEO of the SoMa-based financial advisory firm, Atelier Advisors, creator of Lean Finance for Startups, Finance Boot Camp for Entrepreneurs, and How to Crowd Fund a Million Dollars, author of Master the Finance Game, and host of the Finance for Entrepreneurs broadcast on Spreecast. After spending fifteen years in investment management and investment banking, she decided to develop a firm to cater to the specific needs of early-stage companies. At Atelier Advisors, Lili advises leading brands across industries: from tech to consumer goods. In the past, she has advised over 100 brands, including: Bag, Borrow, or Steal, Visual IQ, Alpha Theory, Derivix, Practice Fusion, Peeled Snacks, Sustainable Minds, Firescope, Chix 6, Duchess Marden, Erin Fetherston, Eckart Tolle, and Stuart Skorman (founder of Reel.com, Elephant Pharmacy, Hungry Minds, and Clerk Dogs (sold to Netflix)). While advising companies at Atelier Advisors, she observed a common theme - -brilliant founders avoided finance. She began writing about entrepreneurial finance to solve this problem. As a native of Silicon Valley and a first generation Mexican American, Lili understands the importance of imparting wisdom learned in Silicon Valley to the rest of the world. Her goal is to teach the entire planet about entrepreneurial finance.
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Speaker: Lili Balfour
Igniters MeetupHack Finance for Your Startup
Sponsored by:
Hosted by: http://www.vorkspace.com- Workspace of the Future
http://meetup.com/igniter
Hack Finance for Your Startup
Hacker DojoMountain View
August 20, 2014
Build a profitable company and raise the right type of capital by focusing on
the right financial information.
What + Why
Financial Statements
The Salient Six:
① Revenue② Cost of Revenue/Goods (COGS)③ Research and Development (R&D)④ Sales, General, and Administrative (SG&A)⑤ Operating Income (Loss) ⑥ Cash
Income Statement
Monitor five components for financial performance. We must understand metrics that drive performance.
Balance Sheet - Cash
With $500,000, you will run out of capital in month seven.
You should secure capital by month six.
Standard Metrics
Standard
MetricsARPU Average Revenue Per User (Customer)
CAC Customer Acquisition Cost
DAU Daily Active Users
MAU Monthly Active Users
Churn Rate The % of users/customers lost
Viral Coefficient Effectiveness of digital promos
Determine Source of Capital
Look at amount needed and fit.
$10k to $3 million
$3 million to $50 million
friends + family
angel investors crowd funding
venture capital hedge funds private equity
Finding Investors
Find the right type of investor.
Create a list for outreach.
Identify 100 to 200 leads to execute your funding strategy.
Source Angel Investors
How to Find Angel Investors Who Will Help You Win
Use free resources to develop a list of relevant
angel investors.
Source VCs
How to Locate Venture Capital Funds That Want to Fund Your
Company
Use free resources to develop a list of venture capital funds that have capital and are ready to invest in your company.
Funding Materials
Develop Your Story.
Standard materials used:
Refine elevator pitch, executive summary, pitch deck, and business model.
10 Basic Slides
Pitching to Investors
① Problem/Opportunity② Solution③ Market Size④ Team⑤ Sales, Marketing + Distribution⑥ Customers/Traction⑦ Competitive Landscape⑧ Press/Testimonials⑨ Financials⑩ Capital Needs
Introduce Yourself
Develop Outreach Plan
Angel investors
master the art of cold calling. expand networking circles.
Get Social
Get comfortable reaching out to people you don’t
know.
Move beyond social media and go where your
target investors congregate.
Treat investors as you would potential
customers.
Laws of Nature
The more people you reach, the higher your chances for success.
You need to fail to succeed.
Plan to fail 70% of the time.
VC Dance
Associates vs. Partners
Funding Process
Turn Maybe into Yes
Stay in Touch!Spreecastwww.spreecast.com/users/lilibalfour
YouTubewww.youtube.com/user/lilibalfour
Udemywww.udemy.com/u/lilibalfour
PopExpertwww.popexpert.com/lilibalfour
Use HACKERDOJO to receive 60% to 100% off Udemy.
Speaker: Lili Balfour
Igniters MeetupHack Finance for Your Startup
Sponsored by:
Hosted by: http://www.vorkspace.com- Workspace of the Future
http://meetup.com/igniter
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