georgetown - lessons in funding from a startup ceo
TRANSCRIPT
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Lessons in FundingFrom a Startup CEO
Mike Malloy
Waveborn Sunglasses
Georgetown Alum
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Agenda
• Waveborn Story
• Levels of Funding
• Investor Relationships
• Types of Investors and Investment Instruments
• Types of Pitch Meetings
• Questions for Investors
• Due Diligence Documents
• Crowdfunding 101
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Levels of Fundraising
• Bootstrapping
• Friends, Family, and Fools
• Crowdfunding
• Angel Investors
• Equity Crowdfunding
• Banks
• Institutional VC Investors
• IPO
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Investor Relationships
• Raising seed capital is relationship business for next 5-10 years
• Investors are betting on you, not the company
• No now is not no forever most likely to invest in the next round
• Ask for introductions to other investors
• Connect the dots make lines
• Under promise and over deliver
• Social proof of other investors
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7 Types of Investors
• Connectors
• Product People
• Builders
• Smart Business People
• Domain Expert
• The Brand
• Filler
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Types of Investment Instruments
• Debt
• Equity
• Convertible Notes
• Crowdfunding via Indiegogo or Kickstarter
• Equity Crowdfunding via OneVest
• Series A Preferred Stock
• Warrants from Banks
• M&A
• IPO
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Types of Pitch Meetings
• Elevator pitch – 30 seconds
– Pitch by analogy and get them to ask a question
• Conversational pitch – 5-10 minutes
– Company storytelling to existing relationship
– Goal of meeting is to get the next meeting
• Full investment pitch – 1 hour
– 10 slides, 20 minutes, 30+ size font
– Clear investment ask at end with questions
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Questions for Investors
• How often do you invest?
• What is your average check size?
• What is the range of funds you are considering investing in this round?
• How are you going to add strategic value?
• Who else in your network can add value?
• Do you do follow on investments?
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Due Diligence Documents
• Executive Summary
• Pitch Deck
• Term Sheet
• Income Statement
• Balance Sheet
• Cash Flow Projections
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Crowdfunding 101
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Crowdfunding Best Practices
• 45 day campaign
• Start on Tuesday – end on Friday
• Set low goal and reach it quickly
• Build momentum towards stretch goals
• Video is most important feature
• Update emails weekly to engage supporters
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Prep Work – 3 Months
• Secure pre-commits prior to launching and focus on huge Day One with momentum
• Define roles and time commitment on TEAM
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Templates, Templates, Templates
• Google Docs are your best friend
• Email templates
• Facebook posts to copy and paste
• Click to Tweet links
• Social sharing page for supporters to get all the text needed to share, share, share!
• Contactually CRM
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Tiered Contact Lists
• 1 – Key influencers, large network, high net worth, focus on referrals
• 2 – Friends and family who have supported you on the journey, focus on pre-commit on Day One of campaign
• 3 – Every other person you have ever met, focus on getting engagement
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Use These Tools
• Breevy (PC) | TextExpander (Mac)– Camp;
– http://bit.ly/waveborncampaign
– https://www.indiegogo.com/projects/waveborn-shades-that-give-sight/x/2385224
• Bit.ly Links
• Google Docs
• ToutApp
• Contactually
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Press Kits
• http://os-fashion.com/press-kit-freestyle-conference-dc-2014-2/
• http://wiki.waveborn.com/campaign/press-kit
• FAQs (post on campaign page, too!)
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Waveborn Contact Info
Waveborn Sunglasses: http://www.waveborn.com
Wholesale: http://shop.waveborn.com/wholesale
Customer Service: +1-844-FIND-SUN [email protected]
Mike Malloy, CEO: 310-499-6295
www.linkedin.com/in/mwmalloy
@waveborn
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Appendix
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Additional Content
• https://www.linkedin.com/today/post/article/20140827212854-42595648-how-to-select-the-best-investors-for-your-startup
• http://tech.co/close-fundraising-round-2014-10
• http://tinyurl.com/becomingsogood
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Successful Crowdfunding Campaigns
• SOMA Water - $100k in 10 days
• Nice Laundry
• Waveborn Sunglasses
• Eone – Watch for the Blind
• iJUMP – Smartphone Battery Booster