htw2011: michael a. jackson - raising seed capital
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The Investor’s Perspective: Team, Product, Market
1. Do I love the team?2. Is this a (potentially) kickass product/service?3. Will people buy/use this product/service?4. How big’s the market?5. Do I understand the market?
The Investor’s Perspective: The Deal Itself
1. Do I want to lead this investment?2. What’s the right amount of money to invest?3. How much equity do I take?4. Are there comparables?5. How do I see the exit?
From The Startup’s Perspective: Right “Fit”
Ask Questions: Due Your Due Diligence!!!
Results of previous investments?
Get a list of their current investments
Ask for contacts at all their portfolio companies
How does my startup fit with your investment thesis?
What are your return expectations?
Do you have the right people in your network to help us succeed?
How much time do you dedicate to helping your investments?
Entrepreneur/Investor relationship is a Partnership…it’s gotta be mutually beneficial
Your Deck
10 Slides or Fewer!
Intro/Elevator Pitch
The Problem
Your Solution (w/Demo!)
The Team
Market Size
Business Model
Your Technology
Competition
Key Numbers & Metrics
How Much Money
Remember
• Be confident, not arrogant• Keep it direct and concise• Make it engaging and interactive• Have support slides
Things to Do
It’s all about minimizing an investor’s perceived risk, so…
• Set up a first-class advisory board• Be visible and engaged• Get “warm” intros• Build a great product and keep iterating
(money always finds great companies!)• Stay Positive!!!
Things to Avoid
Your main focus should be building a great company, not raising money so…
• Don’t “Pitch the Bitch”• Don’t waste time with investors with no money• Don’t bother with organized angel groups• A quick “no” is waaay better than a long
“maybe”• Don’t pay € for advice• Try and keep # of investors to a minimum• DO NOT give up a majority of your company
Online Resources
AngelList: http://angel.co/
Seedsummit: http://seedsummit.org/
VC Blog Directory: http://larrycheng.com/2011/01/19/venture-capital-vc-blog-directory-2011-edition/
Me: @MAJACKS0N