inner circle - alejandro cremades
TRANSCRIPT
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Inner Circle
DECEMBER SESSION
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Alejandro Cremades
● Serial entrepreneur● Guest lecturer professor at Wharton, NYU, Columbia
University● Ranked #1 in the Top 30 under 30 list by Vanity Fair,
Entrepreneur Magazine, and GQ Magazine● Forbes contributor● Author of The Art of Startup Fundraising
CoFounder at Panthera Advisors
COACH
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“Simplicity if the key to brilliance.”
-------Bruce Lee
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4
Common Preferred
Types of Shares
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5
CoreValues
1Participating Preferred
2The Waterfall
3Liquidation
4Supervoting
Stock
Factors
• Stock before and after Series A
• Exit scenarios
• Anti-dilution clauses on top
Important Scenarios
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Vesting Schedules.
Investors expect at least 20% allocation
Equity is key for talent acquisition
Option Pool OPPORTUNITY Equity Distribution
CLIFF VESTING OWNERSHIP
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Profit vs. Growth
7
THE JOURNEY
CONS● Slowdown in traction● Burn rate● Goals being missed● Negative PR● You dont control your future
Understanding the full cycle of
building and scaling
GROWTH
GROWTH
PROS● More attractive to big funds● Easier follow on round● Media attention● Gaining market share
towards competitors
CONS● Harder to raise financing● Lower valuations● Facing industry changing
powers
PROFIT
PROS● Strong business model● Acquisition interest● More leverage on
financings
PROFIT
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How To Get Growth
PR and Content Strategy
Expanding To New Territories
Acquiring Competitors
Price Competition Out of Business
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Investors To Avoid (if building marketplaces)
● Asking too much on revenues● Don‘t mention anything about retention● There is no background experience with
marketplaces
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How To Maintain Profitability
Keep static overhead low
Sell it before
you build it
Create model that is profitable from day 1
Use higher pricing model
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Mastering The Pitch
Show The Benefit
Show Why You Are The
One
Get Your Numbers
Right
Show You Are Coachable
Project Bold
Outcomes
Don‘t Be Needy
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What To Focus On
● Acquisition growth
● Retention rates
● Repeating customers
● Unfair advantage to grow
faster
Pre-Revenue
● Monthly growth● Customer acquisition costs● Lifetime value● Average cost
Revenue
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What are they expecting
Angels VCs
● At least 3 to 4x returns● A team in place● An exciting future ahead● A clear path forward
● At least 10x returns● A solid business model● 15 to 20% month over month growth● Thought leadership and experience
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Expected Milestones
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Longest Bull Market Run
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VC Investments At Its Peak
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VC Investments At Its Peak
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How Much To Raise
24 Months 30+ Months
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Strategies To Consider
● Keep the costs low● Always have your eye on the revenues● Have conversations open with potential targets
that you could acquire in a downturn on the market
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Dilution & Outcomes
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Org Chart Example