Post on 21-Apr-2017
Seedcamp is a Founder’s First Round Fund.
We invest smart capital into pre-seed and seed stage startups,
providing up to €200k and a lifelong platform of Learning,
Network and Capital to support the most ambitious Founders.
#3 most active European investors in H1 2015
Seedcamp platform recognised as a “mini Andreessen Horowitz” for early stage
Shortlisted as a “Seed Fund of the Year” in 2015 by GP Bullhound
Recognised by the industry as a leading early stage fund
$350 MillionTotal funding raised by
Seedcamp companies since 2007
Some of the top VCs our companies are raising from
91
87%
89%
1. Fundraising - Overview 2. Fundraising - Key Considerations 3. Fundraising - Timeline 4. Current European Funding
Environment
Agenda
Founders’ money, Friends & Family ~£50K
Business Angels (SEIS), Accelerators, Crowdfunding ~£50K - 250K
VCs ~£250K - 1M
~£1M - 5MSeries A
Seed
Pre-seed
Friends & Family round
VCs
Different investors for different stages
Source SizeType of round
Inception
Stage Focus Sector Focus
Geographic Focus Previous Interactions
Connections with Peers Invested in Competitors
Fund Cycle
What to consider when researching VCs
1. One Pager 2. Investor Deck 3. Business Model 4. Cap Table
Things you need once you start fundraising
1. Problem - Every innovation needs a problem
- What’s the exact lack in society, industry or technology?
2. Solution - Show in simple words, pictures or graphics how you
solve the problem or make your customer happy - What are you doing better then the others or
compared to what already exists?
3. The Market - Focus on relevant market (geography, age etc)
- Be realistic! - Market value in $ or €
4. Business Model - How do you generate revenue: commission, ad-based etc.
5. USP - Biggest advantage vs competition
- Why is your business unique? for example: technology, brand, market leader, UX etc..
6. Competition - Matrix diagram
- Where are you now vs in 5 years? - Why are you different?
7. Go-to-Market Strategy - Chanel, conversion rates, cost of acquisition
8. Vision - Where is the company in the long run?
- Expansion plan (geography, products etc)
9. Team - Highlight previous relevant experiences
- Quality of team!
10. Financing needs and how you going to spend the money
- Milestones for next 6-12 (or 18 months)
What to include in a perfect pitch deck
Starting too late Not speaking to enough VCs
Not raising enough Giving away too much equity early on (>25%)
Overestimating your chances of success Taking a friend as your lawyer
Keep pushing back your timeline for closing the round Not disclosing thorny issues up front
Stopping to run the business
The pitfalls of fundraising
1.#Be#ReadyAll#about#Prep
2.#StartExecute
Termsheet
3.#Close
Company.readinessStory/deckRehearsalCompany.Strat/planNumbersTraction
Fundraising. PlanTargeting.(fit)Intro’sDrive.the.process
*Ultimate.Goal
$(1I6.months) (3I4.months) (1.month)
The 3 phases of fundraising: Prepare, Execute, Close
Fundraising Guide, Scott Sage
Increasing number of Entrepreneurs turned Investors in Europe
The State of European Tech, Slush & Atomico, 2015
Crowdfunding & non-VC investors pushing valuations up
Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015