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Page 1: Raising Startup Capital: Arie Abecassis/General Assembly

Arie AbecassisVenture Partner, Founder: Dreamit, Appstori

RAISING STARTUP CAPITAL

Page 2: Raising Startup Capital: Arie Abecassis/General Assembly

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

TRUE OR FALSE?All VCs are evil

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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”)

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RAISING STARTUP CAPITAL

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

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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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

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

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RAISING STARTUP CAPITAL

GOOD TIMES, EH?

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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