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
- Social proof (Angel List, Twitter, LinkedIn)
-
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
Raising capital
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