financing your idea charlie kiser chief reality officer sellstrategy consulting

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 Kisersellstrategy@gmail.com@charliekiser