Fundraising

Takeshi Ebihara

What Investor look for

Traction

•Profit > Revenue > Users

Product

•Capability

•UI, Design

Team

•Track record

•Reason to do that

Space

•Fund theme

•Partner preference Idea?

Projection?

Deck?

What VCs DO NOT like

•Large enough, growing fast market

Niche

•Back to question

“Is that really they need ?”

Complicated

•Learn market, learn from abroad

Luck of study

•It’s not SV

No (late)Monetization

What fundraising for

Seed

Series A

Series BSeries C

Exit

forMarket share

For ProfitFor Liquidation

For hiringBuild Business

For product dev.Find mkt fit

Provide funding

Value add activityfor portfolio companies

Whom to be invested ?

Valuation

How much you need ?How much they need ?

Valuation

Pro forma cap table

　 Pre money Seed round Post funding

Founders/ angels $10,000 80%

VC 　 $100,000 20%

Valuation $400,000　 $500,000

Typical failure in fundraising

May

-04

May

-05

Apr-

06

Oct

-07

Mar

-08

May

-09

Jan-

11

May

-12

Aug-

12

Seed Series A

Series B

Series C Series D

Series E

IPO Present

0

20,000

40,000

60,000

80,000

100,000

120,000 Unit: mil $ Valuation

x5 than Series D

Set IPO pricex2 than Series E

Lower that Series E3m after IPO

Fundraising of facebook

DOWN ROUND is management’s sin.

Give share to right personin right timing.

Issue between founders..

Always Issuer’s responsibility

Thank you !

ebihara@rebrightpartners.com