Post on 15-Apr-2017
Digital startups: how to get money from investors?
Top tips about Angels & VCs
Giulia Gazzelloni Co-founder @LeCicogne Board Member @InnovAction Lab Alumni
About me
Managing investor relations it’s a full-time job
After two rounds… we have learned
the lesson!
Digital = cheap but
Digital Startups = $$$ BLN
à “scalability”
Do I really need investors’ money?
BAs invest
their own money
≠ VCs invest
someone else’s money
We need them in order to gain a great market advantage
VCs like to co-invest
VCs like to co-invest because
any investor who co-invests with you
is one less investor who could fund a competitor
Investors always say what they really care about is
the team.
Investors always say what they really care about is
the team.
Actually what they care most is
your traffic,
Investors always say what they really care about is
the team.
Actually what they care most is
your traffic, then what other investors think,
Investors always say what they really care about is
the team.
Actually what they care most is
your traffic, then what other investors think,
than the team
It’s easier when you do not have traffic
It’s easier when you do not have traffic
It’s not enough to be promising:
you have to be delivering results
VCs are afraid of looking bad – angels take greater risks
Investors are human
Investors are human
1. They are emotional
Investors are human
1. They are emotional
2. They make mistakes
“On June 26, 2008, our friend Michael Seibel introduced us to 7 prominent investors in Silicon Valley.
We were attempting to raise $150,000 at a $1.5M valuation. That means for $150,000 you could have
bought 10% of Airbnb. Below you will see 5 rejections. The other 2 did not reply.”
BRIAN CHESKY CEO of Airbnb
BRIAN CHESKY CEO of Airbnb
BRIAN CHESKY CEO of Airbnb
BRIAN CHESKY CEO of Airbnb
BRIAN CHESKY CEO of Airbnb
BRIAN CHESKY CEO of Airbnb
“He’s just not that into you”
Most common answers:
Most common answers: You are not in my investment focus
Most common answers: You are not in my investment focus
You are asking too much
Most common answers: You are not in my investment focus
You are asking too much You are asking too little
Most common answers: You are not in my investment focus
You are asking too much You are asking too little
We are excited about your project, let’s keep in touch as you develop it further
How do you know if they want to invest?
How do you know if they want to invest?
Look at your hands
Rejection is a question, not an answer. do not say “We suck” – ask yourself “Do we suck?”
Common mistakes
1. You kind of ask “permission” to start your company
Common mistakes
1. You kind of ask “permission” to start your company à investors greatly prefer if you don’t need them
Common mistakes
1. You kind of ask “permission” to start your company à investors greatly prefer if you don’t need them
2. You try to convince them with your pitch.
Common mistakes
1. You kind of ask “permission” to start your company à investors greatly prefer if you don’t need them
2. You try to convince them with your pitch. à start by understanding why your startup is worth investing in, for you.
No one knows whether a startup is going to succeed.
No one knows whether a startup is going to succeed.
Investors are looking for a sufficiently good bet.
a sufficiently good bet:
a sufficiently good bet:
1. Formidable founders
a sufficiently good bet:
1. Formidable founders the one who seems like he’ll get what he wants, regardless of whatever obstacles are in the way
2. Promising market it does not have to be big yet à trends
a sufficiently good bet:
1. Formidable founders the one who seems like he’ll get what he wants, regardless of whatever obstacles are in the way
2. Promising market it does not have to be big yet à trends
a sufficiently good bet:
1. Formidable founders the one who seems like he’ll get what he wants, regardless of whatever obstacles are in the way
2. Promising market it does not have to be big yet à trends
Smart guys Good stories Big Markets
Smart guys Good stories Big Markets ..great introductions.
The startup of
YOU.
The startup of
YOU. Thanks! giulia@lecicogne.net