Raising Startup Capital: Arie Abecassis/General Assembly

Post on 17-Sep-2014

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One of the most critical issues facing entrepreneurs is deciding if and when it makes sense to raise outside capital. Access to capital cannot only help accelerate product development and sales, but in many cases, partnering with the right investors can influence the trajectory of a business. This series will help students understand term sheets, initial rounds of investment, and how to retain value and control. We’ll also discuss what to do with that money once you have it so you can create exit opportunities and potential for future funding. Want to learn more? Join Front Row today and access on-demand videos, livestreams, and much more: http://bit.ly/1aqAivV

Transcript of Raising Startup Capital: Arie Abecassis/General Assembly

Arie AbecassisVenture Partner, Founder: Dreamit, Appstori

RAISING STARTUP CAPITAL

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RAISING STARTUP CAPITAL

‣ Market Validation vs Scaling‣ Industry Economics & Business Model‣ Founder Objectives‣ Timing considerations (External vs Internal)‣ Company readiness

RAISING STARTUP CAPITAL

TRUE OR FALSE?The best time to raise money is when you don’t need it

RAISING STARTUP CAPITAL

THE ACCELERATOR OPTION‣ Validation, Credibility & Networking‣ Key Considerations: Relocation, Equity‣ Evaluating various Accelerator Programs‣ It’s only the beginning

RAISING STARTUP CAPITAL

TRUE OR FALSE?Accelerators have proven to be an “epic fail”

RAISING STARTUP CAPITAL

TARGETING THE RIGHT INVESTOR‣ Is my startup “venture-worthy”?‣ Angels vs VCs‣ Value of “Smart” money‣ Firm vs Partner Relationship‣ Governance

RAISING STARTUP CAPITAL

TRUE OR FALSE?All VCs are evil

RAISING STARTUP CAPITAL

THE APPROACH‣ Discovery & Due Diligence‣ Referrals are the best way in‣ Develop relationships early and build them‣ “March of the Penguins”‣ Help them help you (“nail the pitch”)

RAISING STARTUP CAPITAL

TRUE OR FALSE?It’s not what you know, it’s who you know

RAISING STARTUP CAPITAL

HOW TO DETERMINE VALUATION‣ Valuation = Pricing + Terms‣ Growth drives price‣ Identify private and public co comps‣ Play within “The Band”‣ Maximization techniques

RAISING STARTUP CAPITAL

TRUE OR FALSE?You should always go with the highest price

RAISING STARTUP CAPITAL

CONVERTIBLE NOTES‣ Why they’re popular‣ Tradeoffs for Entrepreneurs‣ When to best use them‣ Implications for Series A

RAISING STARTUP CAPITAL

TRUE OR FALSE?You should use a Convertible Note if you can’t negotiate a favorable valuation

RAISING STARTUP CAPITAL

CROWDFUNDING & THE FUTURE‣ Crowdfunding for benefits vs equity‣ Horizontal platforms: KickStarter, IndieGoGo‣ Vertical platforms: AppStori‣ JOBS Act

RAISING STARTUP CAPITAL

TRUE OR FALSE?Crowdfunding is best when I can’t get friends and family funding

RAISING STARTUP CAPITAL

GOOD TIMES, EH?

USEFUL LINKSRAISING STARTUP CAPITAL

‣ The Business Insider Angel 100: Top Angels‣ Top NYC-area VCs: Top NYC VCs‣ Top US-based Accelerators: Top Accelerators‣ Why Convertible Notes Can Be Bad: Tech Crunch‣ Next Wave of Crowdfunding: VentureBeat: Crowdfunding 2.0‣ Neat blogs: Fred Wilson, Chris Dixon, Charlie O’Donnell, Chris Fralic