The secret science of raising money - a guide for entrepreneursBy Tine Thygesen

www.tinethygesen.com @tahitahi

•CEO Everplaces•CEO 23•CEO Venture Cup•CEO GlobalEventSupplies•CMO Colego•Cofounder Founders House•Cofounder Cleantech Open•Worked with 100 startups

Hi! I am Tine Thygesen

Tech entrepreneur x 5, board member x12, advisor

Based on my experience raising:

• €5mio/ 38mio DKK

• In three rounds

• From 7 Angels + 2 VCs

• As we speak raising5mio DKK

9 untold truths about raising money

#1 You must speak the language

-Know your numbers, CACs, conversions

- Learn the lingo and expressions -Understand a VCs business, what do

they need to return?

Don’t sell, attract!

Be visible, and let them ask

Intros whenever possible

Short meetings at first

Say no if not relevant

#2 - Raising is like dating

Rules of attraction

- We want what we can’t have - If we want it, we’ll pay what it costs - Interest from others, spike our own

VisionProblem & opportunity

Market opportunity Traction

Your productGrowth engine + revenue model

CompetitionFinancials

Team

#3 The basics: You should include

"I am rather a fan of Everplaces, I've been longing for an app that does exactly this,

since before the smart phone was invented.”

Alaina, USA

#4 Early stage: Often easier to sell vision than traction

-Start early, several months before you are raising.

-Create trust

-Deliver over time. Don’t send out projections that show 6 month later that you cant deliver.

#5 Deliver

Example: User map sent after 8 weeks

mobile war will be fought out on ux

with the big portals fighting another the strategic advantage is to the independent player

-Investment is a power play!-Meet on equal level

#6 Psychology of power

#7 - Play to win, not survive

-Offering yourself cheaply will have opposite effect, they know what things cost.

- Show big potential in budget. VCs will divide your revenue projections in half and double your expenses to gauge your business.

To be relevant for a VC, you must go for a huge market. Pick a niche worth fighting for

• Market for travel info $500m pa

• Travel, $920 billion , one of world’s largest industries• Doubled last 10 years, moving mobile• 35% travel transactions occur online (vs. 10% total retail).• Largest online expense (Europe)• Proven: Tripadvisor turnover $900m in 2013

#8 - Don’t just ask the usual suspects-For early stage VCs funds are typically to early, go for private people (angels)

- Look for wealthy individuals in your industry/passionate about your product, not just official angels

- For “tech enabled” you often end up with non tech investor

#9 Play the hand you have

Much reading is about serial entrepreneurs, they will have

other cards that you do

Dont wait for perfect circumstances

Who do you have access to?

#10 Pitch perfect

Opening sentence is of massive importance

Tell stories Be bold Pause!

Slides are for emphasis, not information

Speak like a bear

tinethygesen.comSpeaking tips on

1. You must speak the language2. Raising is like dating3. Include this4. Vision can be easier to sell than

traction5. Deliver6. Understand psychology of

power7. Play to win, not to survive8. Dont just ask the usual

suspects9. Play the hand you have10. Pitch perfect

Thank you! More tips and tricks for entrepreneurs and

innovators on: www.tinethygesen.com

Tine Thygesen @tahitahi

Tine Thygesen@tahitahi

My startup tips: daredo.tumblr.com

Thank you!

Recommended reading: - Zero to One, Peter Theil- Venture Deals, Feld & Mendelson- Fundraising fieldguide, Carlos Espinal

Image credit and sources

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