raising capital


ROuNDS OF FUNDING


Depends on the stage the startup is at 

  • Seed (Angel Round) 
  • Series A, B & C

SEED ROUND


50k - 1Mil  (depends on business you are in)

15 - 30% Equity

                         WHY?
    • build and launch the product 
    • gain traction 
    • find the right business model

"Don't raise a lot of money. Then you'll be on the express train. 
Take the local train -- it goes slower and there are more places to get off." - Mark Suster 

seed round


                      WHO?
    • Founders 
    • Family and friends 
    • "Angels"/Early stage funds 
      • who are the people
      • what do they specialise in
      • past investments
      • vision + chemistry


Neoteny Labs, Jungle Ventures, Angel Prime, Freemont Partners

SEED ROUND


HOW?
    • Start early  (startup events)
    • Everyone Googles
    • Y-Combinator/500 Startups

seed round

"Pitch"
    • 2-4 minutes
    • Need
    • Value proposition
    • $$
    • Product Demo
    • Team
    • Essentials 
      • Talk like its a certainty
      • Share your process and timeline 
      • Decision time frame 

         

Seed round


Business Plan?

"Any business plan wont survive its first encounter with reality. The reality will always be different. It will never be the plan."

                                                                                             - Jeff Bezos




the investors



Angel investors/Seed round funds

                                   Institutional Investors
  • Sequoia Capital
  • First Round Capital
  • PE firms (100+ million $)

the Investors


  • Seed round -  convertible notes
  • Understand their terms
    • adamant on control (next investor?)
    • find terms on angel list  
  • Brand only takes you so far 
    • vision + chemistry
  • Back your team first

The board


  • The lead investor on board - be careful
  • Long-term value 
    • can invest in next round? 
    • long-term advisor? 
    • how much value can i get out of them? 
  • More than 50% board seats within company
    • not all co-founders are meant for it


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