10. funding myths about startups and
small businesses
1. Startups cost nothing to build
2. Startups get funded on a napkin
3. A good idea wins every time
12. reality:
lean or not, it costs money to build
something significant.
savings do run out.
13. stuff that cost MONEY
as if you didn’t know this
• Hiring amazing people – and you need A level
amazing people in startups (they like to be paid
even if they believe in you)
• Infrastructure – yes. It’s cheaper than it was, but
those EC2 bills still pull from your bank
• Marketing – you can do a lot of social media for
free in the beginning, but there is a bunch of
noise to weed through today
• Funding – yes. It cost money to make money, it
takes your time and cost you money to meet with
the right people that will fund your business.
14. fact:
4 out of 5 people who use the phrase “it’s
cheap to build a startup” have never built a
startup (and probably never will)… the
remainder are independently wealthy
15. how to pitch:
1. Know that you will be rejected
2. You will underestimate the number of times
you will be rejected and how long it will take
you to raise $.
3. Ask rejecters for feedback (Real feedback)
4. Ignore most of said feedback*
5. Seek mentors and allies (note: most
important point of this entire presentation)
* Knowing what to ignore is not easy
17. fact:
A Venture Capitalist looks at 2000 deals a year.
A Venture Capitalist Reads the first two paragraphs of the
executive summary and reviews the financials (Aka
EBITDA)
18. Fact:
A Venture Capitalist looks at 2000 deals a year.
A Venture Capitalist Reads the first two
paragraphs of the executive summary and reviews
the financials (Aka EBITDA)
The ones that fit - get set a side- the rest are
thrown into a pile, never to be looked at again.
19. fact:
A Venture Capitalist looks at 2000 deals a year.
A Venture Capitalist Reads the first two
paragraphs of the executive summary and reviews
the financials (Aka EBITDA)
The ones that fit - get set a side - the rest are
thrown into a pile, never to be looked at again.
50 receive Due diligence: < 10 are invested in
20. fact:
A Venture Capitalist looks at 2000 deals a year.
A Venture Capitalist Reads the first two
paragraphs of the executive summary and reviews
the financials (Aka EBITDA)
The ones that fit - get set a side - the rest are
thrown into a pile, never to be looked at again.
50 receive Due diligence: < 10 are invested in
“Many quality deals…but we’re not going to do
them. They’re just not ‘Right’ for us”
21. common VC rejections
“We’re just not that into you”
• “we think you are too early for us”
• “we have too many deals in our pipeline”
• “we don’t understand the market”
• “we’d like to see some local investment”
• “you’re raising too much”
• “you’re raising too little”
• “if only you did a + b, we’d be a better fit…
23. more funding ideas
• Friends & Family: your network is stronger than
you know. (We are doing this now)
• Hold a fundraiser: make it awesome. (We are
combining this with F&F)
• Sell your stuff on eBay: It’s a short term sacrifice.
• Make money in your free time: Mowing lawns?
Delivering pizza?
• Hire a Grant Application specialist: they often
work off of commission and there are small biz
grants
26. reality:
Angels and VC’s: 15-40+ Page Business Plan
Regulation A: 35-60+ Page Business Plan
Regulation D: 35-60+ Page Business Plan
Crowdfunding: 4-40+ Page Business Plan
30. reality:
Startups and small business owners, run
businesses (duh)
Funding is limited by network: Unlikely to
connect with appropriate advisors and investors
31. reality:
Startups and small business owners, run
businesses (duh)
Funding is limited by network: Unlikely to
connect with appropriate advisors and investors
Raising Funds: Uncertainty of time, outcome,
and expense
37. Because without us crazy,
delusional people who do this
the world would be a boring,
stagnant place.
38. Both brilliant and both contributed so
much to science
Tesla died broke Edison died rich
39. What of those with better ideas
who lacked the resources and
weren’t heard at all?
40. what we need to change
1. Encourage/educate more entrepreneurs and
family & friends on how to invest in startups
2. Think Tanks (BCI TT coming soon). Work
together (Globally). Create Communities
(Crowdfunding!)
3. Create better entrepreneurial programs for
Universities
4. Host more events: showcasing startups,
providing education, and to find investors
41. Bridge Capital Investments
We are here to help
We are passionate entrepreneurs that know
how to provide the foundation (a community,
capital and business development tools) to build
successful companies from the ground up
Reach out to us:
Kyle.Benson@bridgecapitalinvestments.com
Ben.Minges@bridgecapitalinvestments.com
