ENTREPRENEURS THINK AND ACT GLOBAL!

A STEP-BY-STEP GUIDE TO RAISING FOREIGN INVESTMENT FOR YOUR STARTUP BUSINESS

ENTREPRENEURS THINK AND ACT GLOBAL!

A STEP-BY-STEP GUIDE TO RAISING FOREIGN INVESTMENT FOR YOUR STARTUP BUSINESS

Why Go Global? 100x more startup seed capital… soon to be 500x Steps & Resources to Build a Global Identity and Corporate Structure Bootstrapping & Surviving the first few years with little or no money Investors invest in momentum – How to create it. Investors invest in the team – How to build it?

My Background as a serial entrepreneur & startup CEO

Developed four fully-branded online companies in Silicon Valley & Brasil with

100+ million combined registered users and $1.7+ billion combined peak market value

Cofounded Freelotto.com World's 11th largest Internet site in the 1990's

Cofounded Qool.com Third largest auction site after eBay and uBid

CEO, Flogao formerly Brasil’s largest photo site & top ten site in Brasil

Founder & CEO, Power.com o Brasil’s first global technology startup o Brasil’s first company to create Internationally recognized consumer brand with tens of millions of users worldwide o Brasil’s first company to receive venture funding from top Tier-1 Silicon Valley VC firms and angels

100x more ANGEL and

SEED INVESTORS outside of Brasil

SOURCE: ANGEL LIST/CRUNCHBASE/LINKEDIN

A n g e l a n d S e e d I N V E S T O R S B R A Z I L : Estimated 6000 U S & G l o b a l : Estimated 600.000

Looking for Investors ? Think Global!

ESTIMATED MARKET SIZE OF EARLY

STAGE INVESTMENT IN THE US, 2012

o 600.000 new startups (out of > 6 million) sought outside financing

o 60.000 startups got $22.5 billion in angel financing

o 1500 startups got $8 billion in

early stage venture financing

approx. 1 in 400 New US Startups

Gets VC Financing

approx. 1 in 10 New US Startups Gets

angel Financing

ESTIMATED MARKET SIZE OF EARLY

STAGE INVESTMENT IN THE Brasil, 2012

o 60.000 new startups (out of > 1 million) sought outside financing

o 600 startups got $200 million in angel financing

o 60 startups got $ 200 million in

early stage venture financing

approx. 1 in 1000 Brazilian Startups

Gets VC Financing

approx. 1 in 100 Brazilian Startups Gets

Angel Financing

Comparison Between Early Stage Investments in

US vs. Brazil, 2012

“A Startup is 10 Times More Likely to get External Financing in the US Relative to Brazil…

Soon to be 50 times with crowdfunding ”

WHAT IS CROWDFUNDING? The collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations” - for example, disaster relief, political rallies and business startups

WHAT DO THE NEW US CROWDFUNDING LAWS ALLOW?

Every US citizen and other global investors can invest small amounts in startup companies

Every company can advertise and promote their company to everyone online

current investment

$22.5 billion

projected investment

$100 billion

77.5%

New CROWDFUNDING LAWS will change everything

“10 million new startup investors are expected, investing an additional

$100 billion in new startups ”

NEW CROWDFUNDING LAWS WILL CHANGE EVERTHING. Like Kickstarter / Indiegogo, Crowdfunding will be done online via the Internet

New CROWDFUNDING LAWS will change everything

Location, location, location - actually,

NOT that important on the Internet!

New CROWDFUNDING LAWS will change everything

Social media validation and momentum -

companies will need to carefully manage their

online investment profile on

LinkedIn, IndieGogo, AngelList, and dozens of other

emerging crowdfunding sites and

“stock exchanges”

THINK and ACT GLOBAL! Raise $$

Online, Part I

Start thinking as a global company targeting all global investors online

THINK and ACT GLOBAL! Raise $$

Online, Part I

You are NOT in Brazil - you ARE part of

the global online community.

Position yourself for the new world of

online crowdfunding today!

Your Global Corporate Identity and Legal Structure, Part I

Incorporate US Delaware corporation online in minutes for

$279 at

www.delawareinc.com

Your Global Corporate Identity and Legal Structure, Part II

Alternatively, incorporate British Virgin Islands company for $1000 www.wwincorp.com

Set Up Your Corporation in Minutes - No Lawyer Necessary!

Free and customizable

US Startup corporate legal

templates for your new corporation at

www.foundersworkbench.com

Set Up Your Investment Documents Easily Too

Standardized investment

documents to raise money from

global investors are available at

www.seriesseed.com &

www.ycombinator.com/seriesaa.html

If your Startup does not need to operate in Brazil

Incorporate solely in

Delaware, USA or the

British Virgin Islands

Have a Brazilian Product or Service ?

o Incorporate in Delaware or British

Virgin Islands while in startup and

development phase

o Wait until your product is launched,

you have more than 10 employees, and

real customers generating real revenues, then create Brasil co…

If you Absolutely must have a Brazilian Company … Create a Brazilian subsidiary owned 100% by your global corporation

Need Legal Help? Contact Brazil’s top International startup lawyer: Felipe Herrera at www.herreraadvogados.com

Keep Your Data Secure! Use www.Box.net Dataroom service to securely store all your corporate documents

Get a Virtual Address To! Get a New York or San Francisco virtual address with email scanning service through www.earthclassmail.com

Set Up VOIP

Set Up New York or San Francisco VOIP Phone

number through Skype.

Need a US Bank Account?

Set up an account with Silicon Valley Bank at SVB.com or HSBC.com or HSBC Offshore (HSBC has direct same-day transfer service to Brazilian HSBC accounts)

StartUp Legal Documents

For all startup legal documents, including US employment

and contractor agreements, Google “ORRICK STARTUP FORMS”

How To Find Us and Silicon Valley Investors? Find mentors, advisors, and angel investors through LinkedIn, Crunchbase and AngelList

CROWDFUNDING will change everything

Create a strong global presence for your startup on

AngelList, KickStarter/IndieGogo

and other emerging crowdfunding sites

How To Get More Global Friends in the StartUp World? Spend 3 months in the US with an accelerator to kick-start your company - www.F6s.com has a comprehensive list of accelerators and startup programs

Catering to the Brazilian Market, Part I

o Global investors want to see local advisors, mentors, and partners whom

they trust

o If you’re servicing the Brazilian market, it’s much easier to recruit non-investor global partners - such as a

cofounder, mentors, advisors,

accelerators etc

Catering to the Brazilian Market, Part II

o Seek out strong local Brazilian mentors/advisors/accelerators from the Silicon Valley with a very strong network, credibility and reputation for working with foreign investors - for

example, 500 Startups (Bedy Yang),

21212 Accelerator, Serendipity Ventures, Felicis Ventures (Renata

Streit), Simon Olson (Google/formerly DFJ/Fir Capital)

Get a Non-Brazilian Cofounder with Complementary Skill Sets

FOUNDER2BE.com

COFOUNDERSLAB.com

Techcofounder.com

FOUNDERSSPACE.com

Ideal BootStrapped StartUp, Part I

Burn rate as close to $0 as possible!

3 complementary

founders, who are …

Ideal BootStrapped StartUp, Part I

o 100% committed

o able to work with little or no salary

for 2 years

o founders have eliminated almost

all personal overhead

Ideal BootStrapped StartUp, Part II

If possible, live in one apartment stocked with food and drinks and stay there until you successfully launch your product or service and get some momentum going.

TIP: It always takes much longer than you think to build momentum with a new startup.

Don’t plan on external funding being easy to get - until you have a

viable product, a strong founding team and have gained some

initial momentum.

Momentum Is When You Can Prove You Can Acquire Costumers Profitably, Part I

PROVE YOU CAN GO VIRAL - ACQUIRE

MILLIONS OF CUSTOMERS AT NO COST

Momentum Is When You Can Prove You Can Acquire Costumers Profitably, Part II

PROVE YOU CAN GET SUSTAINABLE SEARCH ENGINE RANKINGS - GROW ORGANICALLY AT NO COST

Global Brazilian Corporation

Momentum Is When You Can Prove You Can Acquire Costumers Profitably, Part III

PROVE YOU CAN SPEND $1 & EARN $3 AND SCALE THAT - GET ALL THE MARKETING DOLLARS YOU NEED FROM INVESTORS

A NATURAL BORN ENTREPRENEUR

A Great Founding Team Should Have, Part I

A PRODUCT/TECHNOLOGY STRATEGIST/VISIONARY - Who consistently envisions and develops groundbreaking products, technology ideas, product strategies and user experiences.

A Great Founding Team Should Have, Part II

THE ROCKSTAR CODER/HACKER - Versatile, ambitious, fearless, brilliant coder who finds ingenious and disruptive solutions - and who can be a one-man show or quickly inspire and attract admiration from other star coders

A Great Founding Team Should Have, Part III

A PRODUCT & LOGISTICS MANAGER - who never misses a detail, really understands a good product and knows all about the level of attention and detail needed to lead and manage all to create and execute a great end-product.

A Great Founding Team Should Have, Part IV

AN INTERNET MARKETER (VIRALITY, SEO, WELL OPTIMIZED CONVERSION RATES) -This person truly understands the art and science of all types of online marketing and organic growth and appreciates product driven marketing. They will make sure that your product, user experiences, and everything else in the company is built for virality, SEO and well optimized conversion rates.

A Great Founding Team Should Have, Part V

A PASSIONATE STRATEGIC SALESMAN –This person is often a natural born entrepreneur and can sell your company and your product to partners, investors, future employees and everybody else. Your voice and spokesperson internally and externally.

A Great Founding Team Should Have, Part VI