Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
Adam Jackson, Co-Founder & CEO ,Braintrust - Raising a Seed Round: How to Win the Real Numbers Game
1. JUNE 10, 2019 TECHSYLVANIA
RAISING A SEED
ROUND: HOW TO WIN
THE REAL NUMBERS
GAME
01
2. 05
● Who is this guy
● Pros / Cons of VC
● Prep your deal
● How to win
OUTLINE
3. Engineer → Entrepreneur
4x Founder (2x CTO, 2x CEO)
● 2006: StepUp Commerce acquired by Intuit
● 2011: DriverSide acquired by Advance Auto Parts
Founded 2012, $160M raised Founded 2018, $5M raised
Early Stage Investor
Angel: Rapportive, Zenefits, Milo, Protocol Labs, Automatic, Zappedy, Placer, Coverhound, MyTime, Markable + ~40 more.
Digital Assets:
ADAM JACKSON
5. VC: PROs and CONs
Build the best team
Room to explore / iterate
Social proof
PROs CONs
Lose control
Massive time distraction
Lack of discipline
6. IT’S PURELY A NUMBERS GAME
1. How much to raise
2. Derisk your deal
3. Who will be helpful
4. How to get it done
IF YOU DO GO THE VC ROUTE...
7. Effort to raise $1m = effort to raise $3m once you get momentum
Add buffer -- raise 2x what you think you’ll need
HOW MUCH TO RAISE
8. Keep it reasonable - you want your early investors to do great
High price early → lots of pain later
HOW TO PRICE?
9. Strong founding team:
Engineer
Subject expert
Strong narrative
Big market
Strong customer development
Clear value proposition: painkillers > vitamins
Don’t stress over early metrics - even if good, investors won’t buy them at small scale
DERISK YOUR DEAL
10. Strategic value-add for your category
Good brands
Warm intros to Series A
Access to customers / community
0 VCs or 5 VCs!
WHO WILL BE HELPFUL
11. BRUTE FORCE APPROACH
Investors are busy
Pattern matching makes them miss most interesting deals
Deal could be a great fit for the firm but partner can’t take another company
Geography
Group think: collusion is common
GET IT DONE
12. Play the numbers.
There is more VC $ than good deals out there - keep that in mind to keep your
confidence high
Keep it time constrained
Shock and Awe
HOW TO WIN
13. $1m seed round
10 x $100k
1 x $500k + 10 x $50k
You’ll need 10-20 investors, minimum
So talk to 50
Why?
Coming up short = death
PIPELINE: HOW BIG?
14. Once you’re close, start using this word → builds strong momentum
BE OVERSUBSCRIBED
15. Work hard to have a cash-flow-positive option → builds leverage
CASH IS KING