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How to get funded
Hi!
I’m Alexander Jarvis
• twitter.com/ADJBlog
• my.linkedin.com/in/alexanderdjarvis
• angel.co/alexander-jarvis
• www.facebook.com/50folds
Connect...
Confused how to raise?
Fundraising is, well…
But there is a basic process
You need to be smart, prepared and work hard
WORK
HARD
RAISE
WELL
What stage are you at?
• Idea, or have little traction you are Angel
• Take more risk, but smaller checks
• Need to get lots of them, generally t...
• Team, some traction with functioning
product = seed investors
• These are seed ‘VCs’ in Asia, can also add
angels to ‘to...
Requirements (What
VC’s care about)
• So many founders simply ignore the fundamentals,
but they are all that matter at the start
• If you don’t have an invest...
“70% of my
investment decision
of an early-stage
company is the team”
Make it great!
Read about investible team
http://alexanderjarvis.com/blog/2015/05/05/investible-
founding-startup-teams/
Read here!
Problem - make it painful
Broken thumb
Learn about problems
http://alexanderjarvis.com/blog/2013/10/27/your-solution-is-
not-my-problem/
Read the blog here!
Solution: Aspirin not vitamin
10x better than
alternative (This can
be inertia)
Big market =>
power distribution law (How
VC returns works)
Functioning, attractive
product
Landing page
pretty at least
• Ideas are a multiple of execution
Traction
Clear go to market strategy
“Don’t give me 20 slides on
your idea… give me 10 on
how you are going to do it!”
• Different kinds of investors, with
• Different sector focus, and
• Different check books
How much do you need?
How are y...
What you need to
prepare before raising
Pitch deck
yes, it’s in Word…
Template pitch deck
http://alexanderjarvis.com/2015/01/06/template-seed-stage-
investor-pitch-deck-for-raising-venture-cap...
Pitch deck examples
http://alexanderjarvis.com/blog/2015/05/19/pitch-deck-
collection-from-vc-funded-startups/
See 42 fund...
• Don’t let investors work hard
• Investors will ask for more info
• The more you spoon feed, the easier it will be
• Crea...
Financial model (The actual plan)
Financial model blog
http://alexanderjarvis.com/blog/2015/01/12/why-you-are-
making-a-financial-model-for-your-fundraise-is...
Cap table (If complicated)
Cap table template
http://alexanderjarvis.com/blog/2015/01/08/ultimate-startup-
cap-table-and-return-analysis-template/
Ge...
• Give to contacts that make ‘warm intros’
• Take control of the ‘sales’ process
• Dear [x]
• Pitch: Uber is challenging t...
List of investors and specific
reasons why you want them
Practice!
How to approach
investors
First find them. Make a list
•LinkedIN
•AngelList
•Google
•Your network
•CrunchBase
•Read tech blogs for
who invested in w...
Start with crappy ones who don’t know
millions from billions (Learn)
• See who knows them (LinkedIn)
• Give them template email with specific reasons
• Give them deck
Get warm intros to inves...
Blitzkrieg. Keep the pace up,
don’t lose momentum
Need to ensure investors
are running on the same
timeline
One goal: Get the first meeting
Take small steps
in each interaction
Then: make investors like YOU
and get excited
Believe. If you don’t no-one
else will. Share your belief
How to manage the
process
The photo made me
laugh…
One goal: Find a lead
investor
Investor tracking sheet
Track name, date, interest,
ticket size, status etc
Learn from feedback and reiterate pitch
Keep fixing your deck and pitch
after you receive feedback.
Adjust size of round e...
Provide regular updates
Will take time, so keep
everyone updated on progress
The round will rapidly come
together once you...
• Hey Alexander,
• I created this for the investors who I'm in talks with currently. I thought I should reach out to you.
...
How to close
Get a lawyer
Not your uncle who
does property law
Get a term sheet from the lead
This summarises the key
terms (Any potential ‘deal
breakers’)
Principally the terms are
abo...
Shop the term sheet for the best deal
Term sheets are gold for
negotiation
Nothing makes VCs move
faster than you getting ...
Get the followers in to close the round
Lead will help here a lot
Followers are like sheep,
you need to herd them
Keep growing business, you still are
expected to hit targets!
Seriously, as talks
progress they want to
see updated number...
Due diligence
Early companies don’t have
much- so your incorporation
docs, HR agreements etc
Later stage companies will
be...
Negotiate definitive documentation
Read so you
aren’t a dumb
ass
Keep working in case shit happens
Term sheets do get pulled, but not often
VC looks bad if they do
Stay friends with VCs who participate in next round
If you have a competitive round,
be nice and say you would love
to cha...
Close and get started (really, I mean
started)
Closing a round isn’t a
reason to celebrate. You
need to deliver now…
No Nos
Don’t do stupid things
VC’s are busy, don’t
make things hard
Very frustrated man
If they ask for something, give it, unless
it is silly
Be on tim...
Quit your job after the raise
You have to be full
time before you raise
Think VC’s invest in ideas
Setting up is cheap these
days. VCs don’t want to pay
for you to learn the basics…
• Pick who you trust
• Assume your deck will find competitors though
Ask for an NDA
Don’t pitch a VC invested in
your comp...
Insist on meeting before giving a deck
I have had
founders ask for
a meet and say
they will share
the idea when
we meet…
Blog: Why I want a deck before a pitch
http://alexanderjarvis.com/blog/2014/07/17/why-i-want-a-pitch-
deck-before-a-pitch/...
• One founder is 100% on raise, other runs business
Treat raising as a distraction
Use Word, or make deck too long
Don’t Do
Write long emails to people (Please!!!)
Omit key info they need - VCs don’t waste time
Keep your idea a secret
How to get funding from Venture capital and angel investors - Startup Next - Alexander Jarvis
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How to get funding from Venture capital and angel investors - Startup Next - Alexander Jarvis

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This is a presentation I gave to founders at Startup Next.
Many founders know they need to raise investment from venture capital and angel investors, but the how to go about it is unknown. This is a high level walk through of how a founder needs to prepare, go through the process and avoid silly mistakes (Such as asking for an NDA).

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How to get funding from Venture capital and angel investors - Startup Next - Alexander Jarvis

  1. How to get funded
  2. Hi! I’m Alexander Jarvis
  3. • twitter.com/ADJBlog • my.linkedin.com/in/alexanderdjarvis • angel.co/alexander-jarvis • www.facebook.com/50folds Connect with Alexander
  4. Confused how to raise?
  5. Fundraising is, well…
  6. But there is a basic process
  7. You need to be smart, prepared and work hard WORK HARD RAISE WELL
  8. What stage are you at?
  9. • Idea, or have little traction you are Angel • Take more risk, but smaller checks • Need to get lots of them, generally through personal relationships • May not need lead • $100-300k check Super early = Angel
  10. • Team, some traction with functioning product = seed investors • These are seed ‘VCs’ in Asia, can also add angels to ‘top up’ • Need a lead • $500-1m check We rolling = Seed investors
  11. Requirements (What VC’s care about)
  12. • So many founders simply ignore the fundamentals, but they are all that matter at the start • If you don’t have an investible startup, keep working till you do and then go pitching • Super-talented founders can attract $ with less traction and product, everyone else needs to prove they can execute and have semblance of product- market fit • Remember, you are NOT entitled to $ so be humble You can’t sell what no-one will buy (invest in)
  13. “70% of my investment decision of an early-stage company is the team” Make it great!
  14. Read about investible team http://alexanderjarvis.com/blog/2015/05/05/investible- founding-startup-teams/ Read here!
  15. Problem - make it painful Broken thumb
  16. Learn about problems http://alexanderjarvis.com/blog/2013/10/27/your-solution-is- not-my-problem/ Read the blog here!
  17. Solution: Aspirin not vitamin 10x better than alternative (This can be inertia)
  18. Big market => power distribution law (How VC returns works)
  19. Functioning, attractive product Landing page pretty at least
  20. • Ideas are a multiple of execution Traction
  21. Clear go to market strategy “Don’t give me 20 slides on your idea… give me 10 on how you are going to do it!”
  22. • Different kinds of investors, with • Different sector focus, and • Different check books How much do you need? How are you going to spend it to hit milestones for next round?
  23. What you need to prepare before raising
  24. Pitch deck yes, it’s in Word…
  25. Template pitch deck http://alexanderjarvis.com/2015/01/06/template-seed-stage- investor-pitch-deck-for-raising-venture-capital/ Get the FREE template here!
  26. Pitch deck examples http://alexanderjarvis.com/blog/2015/05/19/pitch-deck- collection-from-vc-funded-startups/ See 42 funded startup decks!
  27. • Don’t let investors work hard • Investors will ask for more info • The more you spoon feed, the easier it will be • Create an appendix for common questions • Numbers matter • If you have numbers, you need to give them • The later stage the company, the more they matter • They help remove risk in investors heads Detailed deck
  28. Financial model (The actual plan)
  29. Financial model blog http://alexanderjarvis.com/blog/2015/01/12/why-you-are- making-a-financial-model-for-your-fundraise-is-wrong/ Discover how to make a model that works for you!
  30. Cap table (If complicated)
  31. Cap table template http://alexanderjarvis.com/blog/2015/01/08/ultimate-startup- cap-table-and-return-analysis-template/ Get the FREE template here!
  32. • Give to contacts that make ‘warm intros’ • Take control of the ‘sales’ process • Dear [x] • Pitch: Uber is challenging traditional taxis • Problem: It’s hard to find taxis, we solve this • Traction: Currently in 3 countries (SEA focus), signed up 120 taxis, $15k MRR • Team: 5, Ex-Yahoo and SingTel • Raising: $500k Seed, $200 closed so far • Why 50Folds: Love experience in X and your investment in Y • Hugs and kisses, • Travis, CEO, Uber Template email for intros
  33. List of investors and specific reasons why you want them
  34. Practice!
  35. How to approach investors
  36. First find them. Make a list •LinkedIN •AngelList •Google •Your network •CrunchBase •Read tech blogs for who invested in whom •Ask friends
  37. Start with crappy ones who don’t know millions from billions (Learn)
  38. • See who knows them (LinkedIn) • Give them template email with specific reasons • Give them deck Get warm intros to investors you want
  39. Blitzkrieg. Keep the pace up, don’t lose momentum Need to ensure investors are running on the same timeline
  40. One goal: Get the first meeting Take small steps in each interaction
  41. Then: make investors like YOU and get excited
  42. Believe. If you don’t no-one else will. Share your belief
  43. How to manage the process The photo made me laugh…
  44. One goal: Find a lead investor
  45. Investor tracking sheet Track name, date, interest, ticket size, status etc
  46. Learn from feedback and reiterate pitch Keep fixing your deck and pitch after you receive feedback. Adjust size of round etc
  47. Provide regular updates Will take time, so keep everyone updated on progress The round will rapidly come together once you have a lead
  48. • Hey Alexander, • I created this for the investors who I'm in talks with currently. I thought I should reach out to you. Since you guys gave me a genuine reason for a "No" in the past and not some random bullshit. • Below is a quick update on our current status. • Quick Update mail: • 140 char pitch: Convert photos/images in content publisher websites into ad units. • Year founded: 2013. Revenue model - CPM. • Traction - 3-5 mn Impressions/day - $250-$320. • Current MRR: ~$10K-$12K. Current ARR: ~$100K- $140K. • ARR Aimed at before end of 2013 - $500K. • Amount raised: $~15K (Accelerator). Previous Investor - INVESTOR (www.INVESTOR.com). • Looking to raise- $500K. • Founders - 2. Team size - 6. Location- CITY. • Target Market:Global - Currently SE Asia, Australia, US. • Competitors:6 players (Globally - 1 acquired by XXX in MONTH 2014). • Market Share: 90% still left (According to datanyze). • Competitive advantage: Strategy - Programmatic first advertising. • Future plans: Expand - Videos,Mobile,Social.(5 Trillion images online). • Top publishers Include: COMPANY, COMPANY, COMPANY. • Top Advertisers Include: COMPANY, COMPANY, COMPANY. • Let me know if there is any interest. Thanks. • P.S:Attached is a quick reference of our product.(10 slides only)* • Regards Example update email
  49. How to close
  50. Get a lawyer Not your uncle who does property law
  51. Get a term sheet from the lead This summarises the key terms (Any potential ‘deal breakers’) Principally the terms are about economics and control
  52. Shop the term sheet for the best deal Term sheets are gold for negotiation Nothing makes VCs move faster than you getting one of these
  53. Get the followers in to close the round Lead will help here a lot Followers are like sheep, you need to herd them
  54. Keep growing business, you still are expected to hit targets! Seriously, as talks progress they want to see updated numbers up and to the right
  55. Due diligence Early companies don’t have much- so your incorporation docs, HR agreements etc Later stage companies will be in hell ;)
  56. Negotiate definitive documentation Read so you aren’t a dumb ass
  57. Keep working in case shit happens Term sheets do get pulled, but not often VC looks bad if they do
  58. Stay friends with VCs who participate in next round If you have a competitive round, be nice and say you would love to chat about the next round Remember! VCs know every other VC
  59. Close and get started (really, I mean started) Closing a round isn’t a reason to celebrate. You need to deliver now…
  60. No Nos
  61. Don’t do stupid things
  62. VC’s are busy, don’t make things hard Very frustrated man If they ask for something, give it, unless it is silly Be on time to meets Check your ego at the door
  63. Quit your job after the raise You have to be full time before you raise
  64. Think VC’s invest in ideas Setting up is cheap these days. VCs don’t want to pay for you to learn the basics…
  65. • Pick who you trust • Assume your deck will find competitors though Ask for an NDA Don’t pitch a VC invested in your competitor. Check their portfolio..
  66. Insist on meeting before giving a deck I have had founders ask for a meet and say they will share the idea when we meet…
  67. Blog: Why I want a deck before a pitch http://alexanderjarvis.com/blog/2014/07/17/why-i-want-a-pitch- deck-before-a-pitch/ Read the blog here!
  68. • One founder is 100% on raise, other runs business Treat raising as a distraction
  69. Use Word, or make deck too long Don’t Do
  70. Write long emails to people (Please!!!)
  71. Omit key info they need - VCs don’t waste time
  72. Keep your idea a secret

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