Milan Steskal Founder & CEO, Mentegram @milansteskal

From an Idea to Funding, And Beyond…

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Startup ≠ Comfort Zone

Where the magic happens

Your comfort

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CUSTOMERS are the best investors

1. How would I fundraise these days. 2. Break. 3. 9 steps to successful fundraising. 4. Our story with Neulogy Ventures.

(if we still have time)

Plan for today

How would I fundraise these days.

Understand investors

Build your network

Prepare elevator pitch

Good elevator pitch1. Only a few simple sentences. 2. Even a 5 year old would understand. 3. Describes the value, not features. 4. The goal is to spark interest and get a meeting. 5. The goal is NOT to get an investment, yet.

Pitch to investors

Speaking with investors1. Build relationship. Think of a “marriage”, not a “one

night stand”. 2. Start with elevator pitch and ask for a quick feedback. 3. Ask for advice when you are NOT ready for money. 4. Follow up with investors on how the advice worked. 5. Ask for money when you are ready for it.

Let’s Play

Break

9 steps to successful fundraising.

1. What problem are you solving?

Does the problem REALLY exist?1. What are your biggest problems when …? 2. How do you overcome them? 3. If you could have a magic wand,

what would the solution be?

How often do you have the problem? Why is it a problem?

2. How are you solving the problem?

Talking vs

Listening

Product Development1. Solve existing problems.

(You are unlikely another Steve Jobs or Henry Ford, I’m not either.) 2. Don’t reinvent the wheel. 3. Understand what works. 4. Don’t be afraid to pivot. 5. Apply a build-measure-learn loop.

Source: https://www.equidam.com/why-entrepreneurs-should-apply-the-lean-startup-business-valuation/

3. How big is your market?

Know your market1. Avoid generalizing:

1. The whole US healthcare industry is $3T (trillion). 2. 10% of market could be mine.

2. Quantify your use case and niche. 3. Investors will do their own research.

4. How many customers have you got?

Be realistic1. Lying will hit you back later during the due diligence. 2. Likely the most important slide, because investors

listen to: 1. customers 2. sign-ups 3. revenue

3. If you don’t have customers, be clear on why.

5. How are you going to earn money?

Forget about ideal business model1. Two things are really important:

1. Who is going to pay you. 2. Why are they going to pay you.

2. That determines how are they going to pay you and how much are they going to pay you. You can figure this later, but pick one for the pitch and be ready to defend it.

6. How are you going to sell?

Your go-to-market strategy1. Depends a lot on who your customer is. 2. Online marketing won’t work for selling to enterprises

and direct sales isn’t sustainable for a $10/month service.

3. Hunting flies vs hunting elephants (not my concept).

7. Who are your competitors?

Be very open and honest1. Investors will do their own research. 2. Never say that you don’t have any competitors. It means

that you didn’t do research or there is no market. 3. Competitors aren’t the ones building the same product,

but solving the same problem. 4. Keep your eyes open and consider also less usual

competitors. Like other companies selling other products to your customers or simple pen and paper.

8. Who is your team?

Show why you are winners1. Early stage investors invests in teams, not ideas. 2. Good team can deliver a bad idea (or pivot to a

successful company). 3. Highlight what deserves it and skip fluff. Ex:

1. An early employee at an exited startup. 2. Worked with a leader in your industry for X years. 3. etc.

9. What do you need the funds for?

Your plan has to match your stage1. It shows how you understand your company and business. 2. Many CEE companies spend too much on product and not

enough on marketing and/or sales. 3. Don’t forget legal and admin costs. 4. Add buffer to your plans, you don’t want to start fundraising 6

months after a successful round. 5. Tip: Double costs and half revenue of your first plan to make

it more realistic.

Mentegram +

Neulogy Ventures

Mentegram + Neulogy Ventures1. Ask for advice to get money.

Ask for money to get advice. 2. Startup Awards + Ken Ryan 3. Pitch 4. Term sheet 5. Documentation 6. Fundraising 7. Party

Mentegram + Neulogy Ventures3. Problem

4. Solution

5. Validation, Traction

1. Asking for 2. Needs a reason

Mentegram + Neulogy Ventures1. Investor = Partner 2. Monthly reporting

You need to have a CFO that understand this. A “mom accountant” won’t help.

3. Regular board meetingsBe open about problems and ask for help. Investor is your partner and wants you to succeed.

Discussion

Milan Steskal Founder & CEO, Mentegram @milansteskal