CEO of the startup & innovation studio Launcher, Viktor Mikulasek, presented at the Mobcon conference in Bratislava, Slovakia. The aim was to clarify what should a startup consider before approaching an investor.

1. How to fundraise and how to
impress investors
Viktor Mikulášek (CEO @ LAUNCHER)
Presentation for MobCon 2016

2. Presentation for MobCon 2016
LAUNCHER
STARTUP & INNOVATION STUDIO
LAUNCHER is a company builder that:
covers private investors
provides funding, know-how and enterprise network
develops own invested portfolio
manages acceleration program
hands-on in building young and innovative companies
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Viktor MIKULÁŠEK
CEO @ LAUNCHER

3. Presentation for MobCon 2016
HOW TO GET READY?
What is important before you start approaching investors?
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4. Presentation for MobCon 2016
TAKE SERIOUS DECISION
The decision to fundraise has to be serious because:
The process can take a long time and it can gets complicated (= ROI of used time)*
Defocuses the founders away from business and company development
It might impact your credibility in investor’s eyes
The fundraising is the process and has to be planned!
*Avg. number of attempts = 200-250 to make it done (example from USA)
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THE RIGHT TIME
What should a startup achieve before raising funds from investors?*
Obtain market feedback (validation of primary product idea)
Develop a functional prototype
Launch / Public beta towards the target customer group
Readiness to institutionalize (company incorporation and relationships between founders)
Achievable within a short time, with low resources and with low cash requirements
(3-6 months; allocation of 1-2 people, even next to a day-job; usually own cash)
*Relates to first time fundraising, not so much for follow-on funding rounds.
*Relates to development of typical mobile apps, not for non-IT or complex solutions nor services.
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6. Presentation for MobCon 2016
THE RIGHT INVESTOR
What should a startup consider before approaching an investor?
Clear investment opportunity and what to expect from the investor
Investors focus (type, size, experience, industry, geography, history, background, etc.)
Investors strategy (strategic investors vs. financial return oriented investors; not everything is for VC)
Recommendations and track record (previous investments and investment experience)
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THE RIGHT INVESTOR
When talking to investor already do the following:
Make sure you understand how VC decides (who are you talking to, lead / not lead investors…)
Ask for the reference or intro to founders the VC has backed
Focus on closing the deal (if not, consider to walk away)
Do not take money from not wealthy people (prefer accredited investors)
Wrong investor can lead to an unsolvable or even fatal situation.
Look out for smart money!
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8. Presentation for MobCon 2016
TYPES OF INVESTORS & STAGES
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START-UP CORE PRODUCT DEVEL MARKET ENTRY MARKET EXPANSION
Typical Investors
FFF
Business Accelerators
Business Angels
Business Angels
Seed VCs
Strategic Investors
VCs
Corporate VCs
Strategic Investors
Growth VCs
Buy-Out
Strategic Investors
Investment Size 5-50k EUR 100-500k EUR 1-5m EUR 10m+ EUR
Startup Age 0-3 months 3-18 months 18-36 months 36month+
Number of Employees 2 3-10 11-50 100+
Regional Examples
HubRaum (PL)
Pioneers Ventures (AT)
Launcher
Neulogy Seed Capital
Credo Ventures
Neulogy Venture Capital
J&T
Penta
Global Examples
Y-Combinator (US)
Seed Camp (UK)
500 Startups (US)
Eden Ventures (UK)
Sequoia Capital (global)
Accel Partners (global)
Index Ventures (global)
PRE-SEED STAGE SEED STAGE EARLY STAGE GROWTH STAGE
TIME
F
U
N
D
I
N
G
Idea
Prototype
PoC
Public Beta
Launch
Traction
Profitability
Intl. Expansion

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INVESTOR‘S MINDSET
“It‘s all about Value”
(overall, capture, measurement, etc.)
When assessing opportunities:
How big is the opportunity?
The right people & structure to succeed?
What tangible evidence of the above?
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Impact of Equity Investor on Company
Value (Illustrative)
0 Buy
(low)
Sell
(high)
Add
value

10. Presentation for MobCon 2016
PREPARATION: WHAT IS A FUNDRAISING?
Fundraising = Enterprise sales process
Use referrals, requires time and focus, be smart while approaching the investor, preparation is king!
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PREPARATION: HOW TO PREPARE
Mind-set that you will succeed (not “trying to raise money” nor “exploring options”, etc.)
Fundraising materials ready (pitch, exec summary, presentation, business plan, demo, ready for DD)
Get in shape, pitch 100% and convincing
Get ready for a due diligence, get your house in order
Referrals, find a way via your advisory board, business friends, networking or otherwise
Look for right type of investor (= Do your homework!)
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PREPARATION: WHAT INVESTORS LIKE 1/2
Mind-set that you will succeed on your quest
Great founders and balanced team
Vision to fight for, passion and interest
Focus and ROI of invested time
Constructive approach, fair negotiation tactics
Able to articulate a problem
Why are you the one to execute the business
Experience and understanding your business
Good advisors, senior board members
Understand your financials, valuation and setup
Understand investment instruments and terms
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PREPARATION: WHAT INVESTORS LIKE 2/2
Investment opportunity is clear (how much for
what share, what is the exit strategy)
Fundraising materials ready
Deal with numbers (evidence, track record)
Work with hypothesis, have arguments
Great pitch (tell a story)
Convincing about the secret / magic of the idea
Know your competition
Customer fit, market fit, customer acquisition data
Working prototype (at least)
And more…
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PREPARATION: WHAT INVESTORS DONT LIKE
If something is missing or limping from previous points / slide
If your homework is not done!
Good investors will help you solve the problems, but not all of them and not for too long
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What not to do (basics & general mistakes):
Solo founder without team
Do not ask for NDA
Fear of missing out
Sending spam, make the communication
personal
No really means NO (not everybody likes
persistence)
Do not ask for referral if you get NO

15. Presentation for MobCon 2016
NEGOTIATION TACTICS
Only 3 things matters while negotiating the investment deal:
Achieving a good and fair results (for both sides)
Not killing personal relationship getting there
Understanding the deal
Remember financing is just the beginning of the relationship and a small part of that.
Be collaborative and make clear what are walk-away threats.
Building the company while having a productive & good relationship is what matters
most
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CONTACT
You can usually find me @ LAUNCHER (www.launcher.sk)
or:
viktor@launcher.sk
https://www.linkedin.com/in/viktor-mikulasek-3244bb4a
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Viktor MIKULÁŠEK
CEO @ LAUNCHER

17. 2016 © All rights reserved
Thanks and good luck!