Fundraising Readiness | So You Think You're Ready to Fundraise?

So, You Think You’re Ready To

Fundraise?

Project Entrepreneur

Angela Lee

November 14, 2015

37 Angels LLC – All Rights Reserved

37 Angels wants to close that gap

13% of angel investors are women

Our Story


37 Angels yearly snapshot

Train 30-40

Angels

Fund 10-12

companies

Evaluate

2500 startups


My path

Product Management

Business School

Consulting

Academia

Undergrad


Topics to discuss

Fundraise or bootstrap?

Staying sane while bootstrapping

Pitching 101


Sources of capital

Founders

Company

Revenue

Friends &

Family

VCs &

Angels

Other

• Already investing “sweat equity”

• How long before profitable / break even?

• Most expensive capital to raise

• Gives away equity / control

• Loans, grants, business plan

competitions, strategic investors

6


Questions to ask yourself / co-founders

7

What does success mean to me?

Can these investors add value?

What is my current situation?


What to really focus on if bootstrapping

8

Cash flow management


Statement of cash flows

Month 1 … Month 18

Starting cash

Cash in

Cash out

Ending cash



10

Scope management





12

Scope management

Failing fast / cheaply


Don’t be too cheap


Topics to discuss

Fundraise or bootstrap?

Staying sane while bootstrapping

Pitching 101


The 10 pitch slides you need

14

6. Business model

7. Customer acquisition

8. Traction

9. Competition

10.Deal terms

1. Elevator pitch

2. Problem

3. Solution

4. Team

5. Market size



Why your team is the right team

Name, Title

• Accomplishments

• Relevant previous

roles (logos ok)

15

Name, Title

• Accomplishments

• Relevant previous

roles (logos ok)

Next key hire


What is The Market Opportunity?

Differentiate between

• TAM: Total Available Market

• SAM: Serviceable Addressable Market

• SOM: Serviceable Obtainable Market

16


Business Model

• How you will make money

• How you will acquire customers

17


What we don’t like to hear

18

We only have to

capture 1% of the

market!

We’ve done no

marketing!


B to C example B to B example

How are you acquiring customers?

19

Direct email campaign

• Cost to send X emails

• # of opens

• # of clicks

• # of sign-ups

• # that are engaged in x days

• # that pay

• # that are paying in x days

• Cost to acquire customer?

• Value from each customer?

• Best way to attract/engage

customers/

• Salesperson salary = X

• # cold calls a week

• # of demos a week

• # of mtgs with decision maker

• # sales a month

• Timeline to make a sale

• # retained in year 2

• Cost to acquire client?

• Value from each client?

• Best way to attract/engage

customers/

• Understanding of decision maker


Traction to date

What metrics matter to your business?

20

$Y RevenueX Users Z Transactions


Why your company is special

21

Dimension 1

Dim

ensio

n 2

Feature Feature Feature Feature


Investing Details: Call to Action!

22

• Size of your round

• Terms of your round

• What you’ve raised so far

• What money will be used for

• Background of investors (if relevant)


Investing Details

23

$3M valuation

Raising $500K, $300K committed

Funds used for:

• Product development

• Marketing


Pitching best practices

24

• Keep it simple

• Test your pitch

• Pitch the company, not the product


Questions?

37angels.com@37angelsNY@angelawlee

Small Business & Entrepreneurship

Fundraising Readiness | So You Think You're Ready to Fundraise?