1. How to build a traction narrative, pimp your AngelList profile, hustle on AngelList, and understand that fundraising is #&@* hard. @brendanbaker AngelPad – October 6, 2011 Brendan Baker

2. Shiny Ego Stuff * Not a founder (yet) Brendan Baker

3. Our options 1 Building a Traction Story 2 Pimping Your AngelList Profile 3 Hustling with AngelList 4 Fundraising is $%*@ hard Brendan Baker

4. Building a Traction Story Brendan Baker

5. 1 How do investors think? Brendan Baker

6. Momentum. Green is good. Brendan Baker

7. Excitement > Hesitation Amplify and focus on the excitement points. Surface and deal with the hesitation points. Brendan Baker

8. Derisking. Can they build the product? Will people use it? Risk Will people pay for it? Will people come in mass? Progress Derisking often happens in steps. These steps may vary for different startups. Brendan Baker

9. Investors respond to a story. Storyboard. Make the pieces fit together. A story here means the takeaway message you want them to have, not something you’ll say directly. Brendan Baker

10. 2 What is traction? Brendan Baker

11. Traction is yourstory of momentum, told through quantified evidence of market demand for your product. Brendan Baker

12. “your story” Not told directly, but implied in examples of evidence. Your traction is unique – use examples that are unique. Don’t hide weaknesses, but frame them. Brendan Baker

13. “quantified evidence” Yes Maybe Profits Revenues Active users Engagement Customers/clients Registered Users Downloads Partnerships Traffic Cohort progress Engagement progress Product velocity No Press Testimonials * This isn’t a set list. Use evidence that makes sense for you. Brendan Baker

14. “Market demand” Dynamic > static. Use evidence that describes momentum, and hints at market potential. Graphs or growth numbers can work. Brendan Baker

15. 3 So the traction story should show the path from product to market. Brendan Baker

16. Some examples Brendan Baker

17. Remember: The story is the implied message you want to send. It’s not something you’ll say directly. Think of it this way: say you pitched an Associate at a VC firm. She liked you, and had a minute to describe your status and progress to a Partner. What would you want her to say? That’s your target story. Tell it with traction. Brendan Baker

18. story “They’re super early, but theybuild and learn fast. They’re worth betting on.” traction Brendan Baker

20. 11K uniques (growing 40%/month), with 3% conversion

21. avg purchase of $45 (growing 5%/month)

22. $120,000 revenue run rate (increasing 30%/month)

23. Just signed partnership with Yahoo! And ramping up ads.Brendan Baker

25. Weekly actives: 55%

27. Each school population is downloading the app at a 15% faster rate

28. Engagement (photos shared, messages, etc) has increased 40%+ over V1Currently building V3 with virality features, and planning to build street teams to reach the next 25 schools. Brendan Baker

29. Pimping your AngelList Profile. Brendan Baker

30. 1 Your job is to capture their attention. Don’t tell your life story. Focus on memorable highlights. Brendan Baker

31. 2 You’re in a market for early stage funding. Be unique. Don’t take is personally. Nobody cares about your problems. Brendan Baker

32. 3 The best info, as concisely as possible. Be focused. Second draft = first draft – 25%. Third draft = second draft – 25%. Brendan Baker

33. 4 80/20: 80% what you’ve done, 20% where you’re going. Investors will extrapolate your past success to predict your future progress. This is different in other pitching contexts. Brendan Baker

34. 5 Evidence trumps potential. Every time you call yourself a ‘visionary,’ a puppy dies. You’re not a gamechanger, seasoned professional, innovative, next generation, or any other overused catchphrase. Brendan Baker

35. 6 Conviction convinces. Use present tense and strong wording. Avoid weak shit like ‘we’re planning to…’ Brendan Baker

36. 7 Associate yourself with success. Capture the gold dust from your investors, past employers or startups, customers, etc.

37. 8 ASM: Always Show Momentum. Venture investors invest in momentum. Set expectations: ‘we’re still in private beta but…’ Use absolute and growth numbers. Brendan Baker

38. 9 Geeks rule. AngelList is a technical community. Broadcast your geeks. Brendan Baker

39. 10 Give them something to touch right away. Provide a demo with login details or failing that, screenshots. Don’t rely on a 2 minute demo video. Busy investors won’t watch it. Brendan Baker

40. How to Hustle on AngelList Quick discussion around the ‘How to Hustle with AngelList in 12 Steps’ Quora post. Brendan Baker

41. Fundraising is $#@* Hard. Quick discussion around Anatomy of Seed project. Brendan Baker

42. Resources How to Communicate Traction to Investors How to Hustle with AngelList in 10 Steps Anatomy of Seed: An Inside Look at a $1M Seed Round Brendan Baker

43. Thank you. Thank you for building kick-ass companies. @brendanbaker Brendan Baker