As a startup with a great idea you are always looking out for investors and funding. However, "just" an idea might not cut it and you have to step up your game. Why investors are always looking for more...

1. Digital Outlaws presents:
Funding 101
F³ bis VC
or „Why an idea is really not enough“

2. 2
2x
for
some
Redesign
Understanding

3. 3
Financing Options
• Bootstrapping
• F³ - Family Friends & Fools
• Business Competitions
• Crowd Funding / Crow Investing
• Business Angels
• Accelerators / Incubators
• Bank Loans
• Subsidies & Development Loans
• Venture Capital (strategic & non-
strategic)

4. 4
Getting funding is one of the hardest
challenges – why?
4

5. 5
Each seed is the dream of a new life...
5

6. Comfort Zone
...and the road ahead is tough
6
5% rise and 25° Celsius (NOT)
=
VERY tough way

7. Roadmap
1. Idea
2. Mockup
3. Wireframe
4. MVP (Minimum Viable Product)
5. Friendly Testers
6. Hostile Testers
7. Beta Market (Revenue)
8. Cash Flow positive
9. Anchor Market rdy to scale
7

8. Each “piece” leaves the
comfort zone...
(safe airplane)
8

9. 9
...success is achieved when EVERYTHING fits

10. SafeRisky
And success relates to financing probability
10
Thermonuclear
Unstable
MVP Market ScalingIdea
Investors in power position Startup has gained power position
Success
(Product, Market,
Cash Flow, etc.)
Risk
Pivotal
Point
Time

11. Therefore: an idea is
not enough
• Investors believe in facts and
extrapolate from there
• 99% Execution 1% Idea
it’s more like 70% to 30%
• Team = execution = success
• Success = ROI
• Therefore: Team = ROI
• A idea B team vs B idea A team
• Teams w/ track record will
almost always get funded
11

12. Traction beats
anything
12
No, I really mean it –
ANYTHING.

13. 13
6 : 339
• The success ration of reaching
the top of Mount Everest
• Dream ≠ Idea ≠ MVP ≠ Market
proof
• 1 of 10 VC backed startups will
deliver a profit
• Investors ponder carefully
which basket to place their eggs
Investing is about
safe bets (its not gambling)

14. How & When to get
Which Investor
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Idea
MVP
Market
Scaling
Bootstrapping, F³,
Business Competitions
+ Biz Angels, Crowd Funding,
Crowd Invest, Accelerator,
Incubator
+ Bank Loans, Subsidies,
Development Loans, VC
+ Structured Finance, IPO,
Revenue Share

15. Accepting Green
If you accept external money,
1+1 ≥ 2
is mandatory!
Faster scaling, better processes,
cheaper procurement, etc.
1+1 ≥ 2
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16. Some Words of
Caution
• SAFE, Pre Liq, Anti-Dilution, Drag-
Along, Tag-Along, positive vs.
negative vesting...
• ONLY smart money
• Time: 3-6-9 (minimum-good-regular)
• Time bomb: ripe fund
• VC network equals VC traction
• Next round follow up network
• Cap table – tea club no foam party
• If syndicate, than symbiotic:
national – international –
industry – technology
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17. DIGITAL OUTLAWS™
BY SUBLIME INVESTMENTS
C/O ALEXANDER MARTEN, ESQ.
ERICH-OLLENHAUER-STRAßE 7
40595 DÜSSELDORF
am@sublime.vc
@Galil3o
http://linkd.in/1CkkDHB
http://fb.me/digital.0utlaws
http://goo.gl/GpLwD2
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