how do i raise capital oxford lecture

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  1. 1. How do I Raise Capital? Dr Ricardo Schfer & Sia Houchangnia November 17th
  2. 2. Sia Houchangnia Dr. Ricardo Schfer @SiaHouchangnia @SchaeferRic
  3. 3. Seedcamp is a Founders First Round Fund. We invest smart capital into pre-seed and seed stage startups, providing up to 200k and a lifelong platform of Learning, Network and Capital to support the most ambitious Founders.
  4. 4. #3 most active European investors in H1 2015 Seedcamp platform recognised as a mini Andreessen Horowitz for early stage Shortlisted as a Seed Fund of the Year in 2015 by GP Bullhound Recognised by the industry as a leading early stage fund
  5. 5. $350 Million Total funding raised by Seedcamp companies since 2007 Some of the top VCs our companies are raising from 91 87% 89%
  6. 6. 1. Fundraising - Overview 2. Fundraising - Key Considerations 3. Fundraising - Timeline 4. Current European Funding Environment Agenda
  7. 7. 1. Fundraising - Overview
  8. 8. VC = Accelerated growth Bootstrapping = Independence Why Fundraising?
  9. 9. Founders money, Friends & Family ~50K Business Angels (SEIS), Accelerators, Crowdfunding ~50K - 250K VCs ~250K - 1M ~1M - 5MSeries A Seed Pre-seed Friends & Family round VCs Different investors for different stages Source SizeType of round Inception
  10. 10. Discipline Expertise Access to network Platform value add Benets of VC funding
  11. 11. 2. Fundraising - Key Considerations
  13. 13. Stage Focus Sector Focus Geographic Focus Previous Interactions Connections with Peers Invested in Competitors Fund Cycle What to consider when researching VCs
  14. 14. Dont forget to track your communications with potential investors Build a fundraising funnel
  15. 15. When you pitch to VCs Storytelling is key
  16. 16. 1. One Pager 2. Investor Deck 3. Business Model 4. Cap Table Things you need once you start fundraising
  17. 17. 1. Problem - Every innovation needs a problem - Whats the exact lack in society, industry or technology? 2. Solution - Show in simple words, pictures or graphics how you solve the problem or make your customer happy - What are you doing better then the others or compared to what already exists? 3. The Market - Focus on relevant market (geography, age etc) - Be realistic! - Market value in $ or 4. Business Model - How do you generate revenue: commission, ad-based etc. 5. USP - Biggest advantage vs competition - Why is your business unique? for example: technology, brand, market leader, UX etc.. 6. Competition - Matrix diagram - Where are you now vs in 5 years? - Why are you different? 7. Go-to-Market Strategy - Chanel, conversion rates, cost of acquisition 8. Vision - Where is the company in the long run? - Expansion plan (geography, products etc) 9. Team - Highlight previous relevant experiences - Quality of team! 10. Financing needs and how you going to spend the money - Milestones for next 6-12 (or 18 months) What to include in a perfect pitch deck
  18. 18. Starting too late Not speaking to enough VCs Not raising enough Giving away too much equity early on (>25%) Overestimating your chances of success Taking a friend as your lawyer Keep pushing back your timeline for closing the round Not disclosing thorny issues up front Stopping to run the business The pitfalls of fundraising
  19. 19. 3. Fundraising - Timeline
  20. 20. DocSend fundraising research, 2015 Some stats on a typical seed round
  21. 21. Rejections are commoneven for Airbnb 7 Rejections, Brian Chesky, 2015
  22. 22. You need a clear start and nish line for your active fundraising
  23. 23. FOMO as you will need to create: [ = Fear of Missing Out ]
  24. 24. 1.#Be#Ready All#about#Prep 2.#Start Execute Termsheet 3.#Close Company.readiness Story/deck Rehearsal Company.Strat/plan Numbers Traction Fundraising. Plan Targeting.(fit) Intros Drive.the.process *Ultimate. Goal $ (1I6.months) (3I4.months) (1.month) The 3 phases of fundraising: Prepare, Execute, Close Fundraising Guide, Scott Sage
  25. 25. The timeline of a typical round Fundraising Guide, Scott Sage
  26. 26. 4. Current European Funding Environment
  27. 27. The European unicorns
  28. 28. Increasing number of Entrepreneurs turned Investors in Europe The State of European Tech, Slush & Atomico, 2015
  29. 29. New funds being launched The State of European Tech, Slush & Atomico, 2015
  30. 30. More and more capital for Europe The State of European Tech, Slush & Atomico, 2015
  31. 31. Crowdfunding & non-VC investors pushing valuations up Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015
  32. 32. Still a lot to catch up The State of European Tech, Slush & Atomico, 2015
  33. 33. Thank you


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