how saas founders can raise angel funds
TRANSCRIPT
The art of small checksHow to raise Angel funds in 2016
Kevin Dewaltkevindewalt.com@kevindewalt
Savannah, GA
Founder4x mostly B2B
Angel Investor Collabspot , Power Supply, Vericant, Sampler, MadKudu
EngineerBSEE, USCGAMSEE, Stanford
Former VC
NSFPanelist (9 years), Grantee (2x)
Mostly …101001
… fewer …
Seed?
Angel?
Round?
A..B..?
Today’s ScopeChecks from private individuals in $10-50K checks
Typical:$100-250K round 10 small checks $1M round $500K + small checks
X
Today’s Goals1. Understand current state of Angel funding2. Have a plan for getting $3. Hacks & landmines
Part 1
Angel funding in 2016
Angels Investors?
Nope
Angels are everywhere
Angels invest their own money
Incentives: why do Angels invest in startups?
You need to know their motivations
“Love” money - FFF
Ego
Access
Outsized returns
Outsized returns
All Angels believe this is their primary motivation.
Other options are terrible
Very, very few Angels have the time to make financially-based investments.
Crowdfunding? Not yet.
Part 2
Your plan to get Angel $
Fundraising is sales
Got that?
Fundraising is sales
You sellEquityTime
You get$
AdviceIntroductions
Credibility
Angels get … ?
Angels get … ?
Your fundraising sales process1. Talk to those who recently raised2. Set a goal3. Follow a process
Step 1 – Talk to someone who recently raised1. Usual advice: milestone based …2. ASK SOMEONE WHO JUST DID IT
Step 2 – Set a Goal
Close $X by Y date through Z
Close $500K round by 9/1/2016. $200K in Angel + $300K Samsung investment
Step 3 – Follow a process• CRM• Ask for intros• Qualify prospects• Engage• Ask!• Pig-headed determination
Name: Leeroy JenkinsEmail [email protected] List, LinkedIn
Recent deals: MassAttack, PickettsChargeNotes: • Met at Blizzconf. Wants to do a Skype call week of July 9.• Thinks our strategy is too timid. Called us “chickens”.• Yells a lot >>>> will he fit with our culture?
Use a CRM to track your process engaging Angels
Tell EVERYONE. Ask for intros.
Qualify
Qualification questions …. ?
“I wanted to talk to YOU because …”
Engage
Ask!
Pig-headed determination and discipline
Expectations
25 intro requests ->… 50 conversations -> …… 5 qualified meetings-> ……………………….… 1 investment
Part 3
Hacks & Landmines
Start early & build advisors
“Ask for money & you get advice; ask for advice & you get money.”
Angels
Clueless
Don’t think you WANT their $
Dear Mr. Dewalt …Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx Xxxx xxxxx xxxxx xxxx
Summary• Start early, build email list of advisers.• Get a CRM• ”Access” is under-valued motivation for Angels.• Have a specific goal based on recent transactions• Follow a sales process – perspiration, not inspiration