This document provides guidance on preparing a startup to raise capital from investors. It discusses determining fundraising needs based on a company's stage, creating a fundraising checklist including financial projections and investor pitch materials, understanding what investors will want to know, tips for the fundraising process, different investor types like angels and VCs, and resources for finding investors. The key steps are determining fundraising goals and needs, creating an investor package with financials and pitch, practicing the pitch, identifying target investors, and preparing for a lengthy process that may involve rejections.

1. getting your startup investor-ready

2. introduction mark macleod CFO Advisor Investor

3. thinking about raising capital Big Rich Lifestyle Autonomy Vision what are your goals

4. do I want outside capital ? time consuming pros cons move quicker think bigger strategic freedom build a team access smarts loss of control failure rate alignment issues forces a big outcome

5. how much do I need ? stage amount key milestones startup $0-50K prototype, wireframe & customer development seed < $500K launch of beta product & early traction Series A $1.5M + growth in user base, build team, start revenue Series B $5M + serious growth, commercialization

6. fund raising checklist pro formas investor pitch executive summary

7. fund raising checklist The pro forma typically includes: core financials assumptions hiring plan department plans capital expenditure plan bonus... per user economics break-even point key metrics test different assumptions involve key people play w. revenue scenarios

8. fund raising checklist The investor pitch & executive summary About your company Team Problem Market (size, landscape, competition) Your Solution Business Model Go-to-Market Forecast Use of Proceeds Summary tell a story about the problem you solve.

9. what you must know Business - what makes you unique? Industry - key motivation for buying your stuff Numbers - metrics, financials, cash burn Comparables - competition, relevant exits Strengths & Weaknesses - don’t hide them! Strategy - how will you build a big, valuable business? Audience - why are you pitching me? Needs - how much money until exit?

10. what you must have Traction… Users Usage Metrics Feedback

11. sample timeline prep your investor package & make your hit list practice, practice, practice parallel, not serial send out your teaser book meetings t-minus 2 - 4 weeks t-minus 1 week Launch

12. sample timeline 1st meetings, feeling-out process 2nd meetings, in person with more than 1 partner early diligence weeks 2 & 3 weeks 4 & 5 weeks 6-8

13. sample timeline ALL PARTNERS MEETING term sheet docs & closing week 9 week 10 weeks 11-15 sleep! week 16

14. angels & VCs Strained relationship Same end goal: returns Need different approaches for each Very different needs & objectives Angel - time to break-even, year 1 burn, capital efficiency VC - opportunity size, team Priorities

15. fundraising tips strategic what to expect be prepared time fundraising to buzz go local first you will be rejected (a lot) smaller amounts 6 months + (VC)

16. fundraising tips play the game in your corner love @ 1 st sight go for the “no” create urgency advisors no agents angels are your friends

17. who’s got money

18. resources www.oce-ontario.org/Pages/CInvest.aspx www.angelinvestor.ca/Find_Angels.asp www.extremevp.com/extreme-university-2010 www.askthevc.com/blog/index.php cdixon.org venturehacks.com

19. q & a Questions?

20. thank you mark macleod twitter: @ startupcfo blog: startupcfo.ca