How to Raise Venture Capital: What’s Your Plan?

#VCPlan

10 Simple Tips for Raising Venture CapitalHow to Make Investors Believe in Your Startup

#VCBelieve

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Gadiel MorantesPartnerEarly Growth Financial Services

Ryan AzleinPartnerStubbs, Alderton, & Markiles, LLP

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Insider tips you need to present well and get investors to believe in – and support – your vision.

1. Create a fundraising game plan

• How much money do you need to raise?• What’s that money going to be used for?• At what cost and with what terms and conditions?• What type of capital is the best fit for your company, and why?• Where do you find the type of financing you need?• Milestone financing

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2. Understand capital types: convertible debt vs equity

• From valuation and dilution perspective, CD is cheaper & quicker• Current marketplace: less CD• Typical terms

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Entrepreneurial advantage: CD Investors often push for equity

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3. Approach VC fundraising like a business development opportunity

• Timing – 6 months out• Determine your funding

round• Build your value proposition• Rely on your ecosystem for

investor intros • Evaluate and select key

service providers accordingly

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4. Thoughtfully target VCs

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5. Work your network• Target key players• Networking game – build targeting list of all VCs in your

region, stage, industry. How are you connected to them?• Introductions are strongest access point. Cold = bad.• Network with other entrepreneurs• Co-los and incubators = good!

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6. Prepare for “the meet”

• Set goals – meeting by meeting• Do your homework• Prepare for investor questions:

– Business model – users or revenue?

– Why you fit their portfolio?– How much do you need?

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7. Create your executive summary

• Problem – solution – opportunity• Speak in your voice• End goal

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8. Perfect your pitch deck

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9. Tell your story…Vision

Passion Milestones

Know your numbers / patternsAddress competition

Be bold – but believableDefend assumptions

One idea onlyDon’t over-focus on exitHonest & open-minded

LISTEN

10. Follow-up

• Read the signs• Stay on investor’s radar

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Thank You and Q&A!

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Ryan Azlein

razlein@stubbsalderton.com

@StubbsAlderton

Gadiel Morantes

415-343-5084

gadiel@egfs.co

@EarlyGrowthFS