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STARTUP FINANCINGFROM CROWDFUDNING TO DEBT & EQUITY
Tytus Cytowski, Managing Partner
ICT Summit
WARSAW, POLAND
December 3, 2014
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CYTOWSKI LLC
Disclaimers
Any US federal tax advice contained in this presentation is not intended to be used,and cannot be used, to avoid penalties under the Internal Revenue Code or topromote, market or recommend any transaction or matter addressed herein.
This material is for informational purposes only and do not constitute advertising, asolicitation, or legal advice and should not be construed as legal advice for anypurpose whatsoever.
Information contained herein is not intended to create, and receipt thereof doesnot constitute formation of, an attorney-client relationship.
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TYTUS CYTOWSKI
Attorney at Law
EDUCATION
• HARVARD LAW SCHOOL (LLM)
• WARSAW UNIVERSITY (Mag Iur)
EXPERIENCE
• STARTUPS
• VENTURE FINANCING
• FUND FORMATION
ADVISOR
• STARTUPWISEGUYS (Estonia)
• DEFY VENTURES (NYC)
CLIENTS
• EU, USA
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DANKE!
WWW.CYTLAW.COM
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STARTUP FINANCE
IS NOT …
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DANKE!
WWW.CYTLAW.COM
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FUNDRAISING HARD WORK
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LETTER TO SANTA CLAUS
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Friends &
Family
Angel
Investment
Seed VC VC – Series A
Round Size $10 G - $100 G $100G - $1 M $500G - $1.5M $5M -$15M
Investment Size $5 G - $25G $25G - $75G $250 - $750G $3M - $5M
Valuation < $1 M $1 - $5 M $5 - $10M $10M - 25M
Stage - Idea
- B-Plan
- Full time Founders
- Detailed B-Plan- Customers,
pilot, revenue?- Legal
Documents
- Full time Founders
- Detailed B-Plan- Customers,
pilot, revenue?- Legal
Documents- Income- Next Funding- Business Model- Brake Even
- Big Client
- Growth Potential
- Income
- Angels
-Key Management
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DANKE!
WWW.CYTLAW.COM
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CAP TABLE
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DANKE!
WWW.CYTLAW.COM
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VALUATION
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STARTUP FINANCE - 101
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BUILD
RELATIONSHIPs/COMMUNITY
THEN… RAISE MONEY
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DANKE!
WWW.CYTLAW.COM
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ART OF PRICING
RISK
STARTUP FINANCE – 101
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MORE RISK
= NEED TO
GIVE MORE
UP11STARTUP FINANCE - 101
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DANKE!
WWW.CYTLAW.COM
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YO
YOU CAN SELL A LOT
OF THINGS FOR MONEY?
STARTUP FINANCE – 101
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EQUITY
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DEBT
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DANKE!
WWW.CYTLAW.COM
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PRODUCTvia crowdfunding
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DANKE!
WWW.CYTLAW.COM
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CROWDFUNDING
FINANCE IS EASY
WHAT ABOUT
US TAX?
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DANKE!
WWW.CYTLAW.COM
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INCOME?
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DANKE!
WWW.CYTLAW.COM
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NON-
TAXABLE
GIFT?
$14 G
EXCLUSION
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DANKE!
WWW.CYTLAW.COM
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STATE SALES
TAX
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DANKE!
WWW.CYTLAW.COM
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CONVERTIBLE
DEBT
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DANKE!
WWW.CYTLAW.COM
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SAFE
KISS
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DANKE!
WWW.CYTLAW.COM
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HOW DO
YOU
CONVERT
DEBT INTO
STOCK?
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DANKE!
WWW.CYTLAW.COM
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DISCOUNT
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DANKE!
WWW.CYTLAW.COM
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CAP
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EQUITY
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LIQUIDATION
PREFERENCE26
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DANKE!
WWW.CYTLAW.COM
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SIZE
MATTERS
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SIZE OF
EQUITY
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SIZE OF EXIT
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DANKE!
WWW.CYTLAW.COM
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OPTION POOL
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LIKE US ON FACEBOOK!
www.facebook/cytowskillc
FOLLOW ON TWITTER
@tcytowski
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