Intro to Austin

FUNDRAISINGby @joshuaBaer

Joshua BaerFounder & Executive Director

Disclaimer

Disclaimer

Im not a lawyer

Disclaimer

Im not a lawyer Im not a financial advisor

Disclaimer

Im not a lawyer Im not a financial advisor This isnt investment advice

people move here every day150

top of every list

Whats different about Fundraising in

Austin?

Bootstrap first

revenue focused

EXPERIENCEDTeams

How to meet investors1. Leverage your personal network

2. Go where the investors are - bars, coffee shops, events, Capital Factory

3. Follow them on Twitter 4. Create an AngelList profile (and email it to me) 5. Post to Austin Angel Investors Facebook group 6. Office Hours with CTAN 7. Epic Office Hours at Capital Factory 8. Apply for an Accelerator

9. Participate in pitch events and competitions

Twitter

Startup Lawyers

KHGR Evan Kastner Jones-Spross Brian Spross Wilson Sonsini (WSGR) Brian Beard & Paul Tobias Andrews-Kurth Matt Lyons DLA Piper Paul Hurdlow Sprinkle Law Steve Sprinkle (IP) Jose Ancer

venture capital

Silverton Partners @Jon_Bassett, Morgan Flager Live Oak Venture Partners @VShamapant (Venu) Mercury Fund @TexasVC (Aziz Gilani) @NedHill S3 Ventures (enterprise + health) @RajivBala Sante Ventures (biotech) Kevin Lalande Offset Ventures Chris Pacitti (Austin Ventures)

venture capital

500 Startups @DaveMcClure Disruption @PaulSingh ff Ventures @John_Frankel First Round @JoshK (Kopelman) FLOODGATE @M2Jr (Mike Maples, Jr.) Mohr Davidow @BDStolle (Bryan Stolle) Sutter Hill Ventures @SamPullara

Angel investors

Capital Factory Fund @JoshuaBaer @MelliePrice @AndrewBusey ATXSeed Chris Shonk Individual Angels @RossInAustin (Ross Buhrdorf) @BazaarBrett

(Brett Hurt) @maharg (Dan Graham) @seats (Jason Seats) @AmericanCEO (Joel Trammell) @DeepEddyCEO (Clayton Christopher), Rony Kahan, Joe Liemandt, Tom Meredith

One of the most active angel groups in the country Not just tech Quarterly application cycle Monthly office hours Rick Timmins is the Chairman (and CF Mentor) Claire England is the new Executive Director

Find investors, introductions & advice at

Epic office hours

office Hours

Think of this as speed dating Dont expect them to commit on the first date Research their background beforehand Professional on LinkedIn Investments on AngelList Personality on Twitter and Facebook

Ask for a followup meeting to show progress

Accelerators Austin Technology Incubator (UT affiliated) @ATI_UT Bunker (veterans) @TheBunkerAustin Capital Factory (tech) @CapitalFactory @JoshuaBaer International Accelerator @IntlAccelerator Longhorn Startup Lab (UT Austin students) @LonghornStartup SKU (consumer packaged goods) @SKUatx (formerly Incubation Station) SXSW Accelerator Techstars (tech) @Techstars @Seats Medical Innovation Labs (medical devices) Unltd USA (social good) @UnLtdUSA

Intro to Austin Accelerators 2nd Tuesday of each month at 4pm

Pitch Events Texas Venture Labs Investment

Competition (February)

SXSW Accelerator (March) Capital Factory Demo Day at

SXSW (March)

Techstars Demo Day (June 2015?)

Global Venture Labs Investment Competition (May)

Capital Factory Demo Day at Startup Week (October)

Innotech Beta Summit (October) SKU Demo Day ATI Clean Tech & Wireless

Forums

CTAN Presentation Day (5x) House of Genius

Blogs Paul Graham - How to Raise Money

paulgraham.com/fr.html

VentureHacksventurehacks.com/archives

Wealthfront - VC Economicsblog.wealthfront.com/venture-capital-economics/

Brett Hurt - Lucky7 lucky7.io

Gordon Daugherty - Shockwaveshockwaveinnovations.com

Kip McClanahan - ReOverthinkingreoverthinking.com

Jos Ancer - Silicon Hills Lawsiliconhillslawyer.com

Joshua Baer - Austinpreneuraustinpreneur.com

capital factoryAustins Center of Gravity for Entrepreneurs

Last year 32,000 entrepreneurs, programmers and designers gathered day and night for meetups, classes and coworking.

Entrepreneurs come to Capital Factory to Hone skills meetups and hackathons Find a co-founder Build a Minimum Viable Product Meet angel investors and VCs Find lighthouse customers Keep costs low Grow your team

46,000 Square Feet full of

Entrepreneurs

programmers and entrepreneurs

700 Meetups and Hackathons

32,000

classroom teaching skills startups need

Some of the meetups

THe Blueprint

Community Center Coworking pace Mentoring Fund

VIDEO STREAMING Follow @Austintechlive

coworking starts at $200/month

As your company starts to grow reserve

Dedicated Desks

Private offices Sound proof and secure

Private offices teams from 2-10 people

phones and tablets available in the

Device Lab

Google glass available in the

Device Lab

DEVICE Lab 3D Printers and more

DEVICE Lab 3D Printers and more

Find investors, introductions & advice at

office hours

Peer Roundtables Learn from other entrepreneurs

SXSW and startup week

demo dayS

sxswStartup Village

Happy hours bringing people together

DENSITY DRAWS IN EVERYONE THAT STARTUPS WANT TO MEET

VIP Guests Bram Cohen, founder of BitTorrent Michael Dell, founder of Dell Richard Garriott, founder of Ultima Online Bob Metcalfe, inventor of Ethernet Alexis Ohanian, founder of Reddit Peter Thiel, founder of Paypal Slash, Guns & Roses Stephen Wolfram, founder of Mathematica

Accelerator

Introductions to angel investors, mentors, customers, strategic partners, employees

First priority on offices and desks at Capital Factory Access to $50,000+ in matching funds

from Capital Factory, Silverton, FLOODGATE and our AngelList Syndicate

Cratejoy Syndicate

Revolutionizing the $24 Billion self storage industry

180 employees - $26 million funding insight Partners

wordpress hosting Platform for business

150 employees - $18 million funding Northbridge

$6 Million Funding CHarles River Ventures, A16Z

Lots more Aceable Goodybag Chiron Health Zing Nuve Pristine.io Smart Picture Tech

Lynx Laboratories LanternCRM Impossible Ventures eRelevance Corp Pingboard Togga Curb

Kenguru Aunt Bertha Weeva RealMassive ManagerComplete ihiji TripChamp

Apply online

Coworking http://capitalfactory.com/join

Accelerator http://angel.co/capitalfactory/apply

Back the Syndicate http://angel.co/capitalfactory/syndicate

equity or Convertible note?

Most companies begin with a convertible note and then do a priced round (then repeat)

Convertible notes are entrepreneur-friendly Only do a priced round with an experienced investor to

lead and set the price

SAFE docs

Valuation

Average is $3m On a note, think of the cap as the valuation Higher because of traction or track record - up to $8m Higher because it is capital intensive If you have to justify it, then its too high Bigger is not always better

time

Usually takes 6-12 months Really fast is 2-3 months If only 2-3 investors can happen in 1 month Sometimes drags out over 18 months Entrepreneurs usually think its going to happen faster

Get used to hearing

NO

Say youre going to do something. then do it.

if you found this helpful Please help

someone elsehttp://atxstartupscene.com

ask me anything Angel Investors Venture Capital Incubators/Accelerators Banks Lawyers Dev Shops Associations Hack-a-thons

Finding a Co-Founder Blogs Hardware Women in Tech Capital Factory Where do investors

hang out?

Entrepreneur training

ATI SEAL Rice Alliance Entrepreneurs Workshop Tech Ranch VentureForth

General Assembly IronYard MakerSquare

Banks

Chase Jonathan Lee, chase.com Silicon Valley Bank Jonathan Miller Square 1 Bank Comerica

paperwork

Company Formation Bank Account Vesting Docusign

Up and coming DrillingInfo Edgecase Eagle Eye Networks Impossible Ventures Main Street Hub Outbound Engine PostUp

Spredfast Sparefoot.com Spiceworks Umbel uShip WP Engine

Recent Success

Black Locus > Home Depot Dachis Group > Spriklr Food on the Table > Food Network Gazzang > Cloudera Mass Relevance > Spredfast MapMyFitness > Under Armor Ridescout > Car2Go Spanning > EMC

First Time

Experienced teams

Syndicates

angels vs. VCs

Crowdfunding Kickstarter Indiegogo Able

Onevest Microventures

Lines not dots

FACEBOOK

Austin Startupshttp://facebook.com/groups/austinstartups

Capital Factory Members http://facebook.com/groups/cfcoworking

Austin Angel Investors http://facebook.com/groups/atxangelinvestors

COST

At least $5,000 in legal fees, as much as $100,000 Consumes a lot of time. Meetings after meetings.

Smart Money

Brings some benefit other than the cash Introductions to customers Relevant industry experience Help with recruiting talent

Bad Money

Comes from illegal source Pain in the ass Unresponsive

if you found this helpful Please help

someone elsehttp://atxstartupscene.com