fundraising readiness | so you think you're ready to fundraise?
TRANSCRIPT
37 Angels LLC – All Rights Reserved
37 Angels wants to close that gap
13% of angel investors are women
Our Story
37 Angels LLC – All Rights Reserved
37 Angels yearly snapshot
Train 30-40
Angels
Fund 10-12
companies
Evaluate
2500 startups
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My path
Product Management
Business School
Consulting
Academia
Undergrad
37 Angels LLC – All Rights Reserved
Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching 101
37 Angels LLC – All Rights Reserved
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
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Questions to ask yourself / co-founders
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What does success mean to me?
Can these investors add value?
What is my current situation?
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Statement of cash flows
Month 1 … Month 18
Starting cash
Cash in
Cash out
Ending cash
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What to really focus on if bootstrapping
10
Scope management
Cash flow management
37 Angels LLC – All Rights Reserved
What to really focus on if bootstrapping
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Scope management
Failing fast / cheaply
Cash flow management
Don’t be too cheap
37 Angels LLC – All Rights Reserved
Topics to discuss
Fundraise or bootstrap?
Staying sane while bootstrapping
Pitching 101
37 Angels LLC – All Rights Reserved
The 10 pitch slides you need
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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
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37 Angels LLC – All Rights Reserved
Why your team is the right team
Name, Title
• Accomplishments
• Relevant previous
roles (logos ok)
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Name, Title
• Accomplishments
• Relevant previous
roles (logos ok)
Next key hire
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What is The Market Opportunity?
Differentiate between
• TAM: Total Available Market
• SAM: Serviceable Addressable Market
• SOM: Serviceable Obtainable Market
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Business Model
• How you will make money
• How you will acquire customers
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What we don’t like to hear
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We only have to
capture 1% of the
market!
We’ve done no
marketing!
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B to C example B to B example
How are you acquiring customers?
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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
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Traction to date
What metrics matter to your business?
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$Y RevenueX Users Z Transactions
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Why your company is special
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Dimension 1
Dim
ensio
n 2
Feature Feature Feature Feature
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Investing Details: Call to Action!
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• 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)
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Investing Details
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$3M valuation
Raising $500K, $300K committed
Funds used for:
• Product development
• Marketing
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Pitching best practices
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• Keep it simple
• Test your pitch
• Pitch the company, not the product