Upload File

how do i raise capital oxford lecture

33
How do I Raise Capital? Dr Ricardo Schäfer & Sia Houchangnia November 17th

Upload: dr-ricardo-schaefer

Post on 28-Jan-2018

931 views

Category:

Small Business & Entrepreneurship


1 download

Report

TRANSCRIPT

Page 1: How do i raise capital oxford lecture

How do I Raise Capital? Dr Ricardo Schäfer & Sia Houchangnia

November 17th

Page 2: How do i raise capital oxford lecture

Sia Houchangnia Dr. Ricardo Schäfer

@SiaHouchangnia @SchaeferRic

Page 3: How do i raise capital oxford lecture

Seedcamp is a Founder’s 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.

Page 4: How do i raise capital oxford lecture

#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

Page 5: How do i raise capital oxford lecture

$350 MillionTotal funding raised by

Seedcamp companies since 2007

Some of the top VCs our companies are raising from

91

87%

89%

Page 6: How do i raise capital oxford lecture

1. Fundraising - Overview 2. Fundraising - Key Considerations 3. Fundraising - Timeline 4. Current European Funding

Environment

Agenda

Page 7: How do i raise capital oxford lecture

1. Fundraising - Overview

Page 8: How do i raise capital oxford lecture

VC = Accelerated growth Bootstrapping = Independence

Why Fundraising?

Page 9: How do i raise capital oxford lecture

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

Page 10: How do i raise capital oxford lecture

Discipline Expertise

Access to network Platform value add

Benefits of VC funding

Page 11: How do i raise capital oxford lecture

2. Fundraising - Key Considerations

Page 12: How do i raise capital oxford lecture

FUNDRAISING IS A CONTINUOUS PROCESS.

START PREPARING TODAY

Page 13: How do i raise capital oxford lecture

Stage Focus Sector Focus

Geographic Focus Previous Interactions

Connections with Peers Invested in Competitors

Fund Cycle

What to consider when researching VCs

Page 14: How do i raise capital oxford lecture

Don’t forget to track your communications with potential

investors

Build a fundraising funnel

Page 15: How do i raise capital oxford lecture

When you pitch to VCs Storytelling is key

http://seedcamp.com/the-power-of-great-storytelling/

Page 16: How do i raise capital oxford lecture

1. One Pager 2. Investor Deck 3. Business Model 4. Cap Table

Things you need once you start fundraising

Page 17: How do i raise capital oxford lecture

1. Problem - Every innovation needs a problem

- What’s 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

Page 18: How do i raise capital oxford lecture

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

Page 19: How do i raise capital oxford lecture

3. Fundraising - Timeline

Page 20: How do i raise capital oxford lecture

DocSend fundraising research, 2015

Some stats on a typical seed round

Page 21: How do i raise capital oxford lecture

Rejections are common…even for Airbnb

7 Rejections, Brian Chesky, 2015

Page 22: How do i raise capital oxford lecture

You need a clear start and finish line for your active

fundraising…

Page 23: How do i raise capital oxford lecture

FOMO… as you will need to create:

[ = Fear of Missing Out ]

Page 24: How do i raise capital oxford lecture

1.#Be#ReadyAll#about#Prep

2.#StartExecute

Termsheet

3.#Close

Company.readinessStory/deckRehearsalCompany.Strat/planNumbersTraction

Fundraising. PlanTargeting.(fit)Intro’sDrive.the.process

*Ultimate.Goal

$(1I6.months) (3I4.months) (1.month)

The 3 phases of fundraising: Prepare, Execute, Close

Fundraising Guide, Scott Sage

Page 25: How do i raise capital oxford lecture

The timeline of a typical round

Fundraising Guide, Scott Sage

Page 26: How do i raise capital oxford lecture

4. Current European Funding Environment

Page 27: How do i raise capital oxford lecture

The European unicorns

Page 28: How do i raise capital oxford lecture

Increasing number of Entrepreneurs turned Investors in Europe

The State of European Tech, Slush & Atomico, 2015

Page 29: How do i raise capital oxford lecture

New funds being launched

The State of European Tech, Slush & Atomico, 2015

Page 30: How do i raise capital oxford lecture

More and more capital for Europe

The State of European Tech, Slush & Atomico, 2015

Page 31: How do i raise capital oxford lecture

Crowdfunding & non-VC investors pushing valuations up

Venture Capital Outlook 2016, Mark Suster & Kevin Zhang, 2015

Page 32: How do i raise capital oxford lecture

Still a lot to catch up

The State of European Tech, Slush & Atomico, 2015

Page 33: How do i raise capital oxford lecture

Thank you


Symfonie P2P Ltd - Capital Raise

Raise Community Capital - Indiana Philanthropy Alliance · Raise Community Capital community foundation initiative. In the first phase of the evaluation, Kresge used unrestricted

How To Raise Venture Capital

Would Stricter Capital Requirements Raise the Cost of Capital? …pages.stern.nyu.edu/~jwurgler/papers/Bank Capital Regulation.pdf · Would Stricter Capital Requirements Raise the

So you want to raise capital

How to Raise Venture Capital: What's Your Plan?

How To Raise Capital For Land Investments

Presenting To Raise Capital

PBI-How to Raise Venture Capital

How to Raise Seed Capital

Insiders Guide On How To Raise Venture Capital

Do Strict Capital Requirements Raise the Cost of Capital ... · Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation and the Low Risk Anomaly1 Malcolm Baker Harvard

The Capital-Using Economyplewin/The Capital Using Economy.pdfThe Oxford Handbook of Austrian Economics Oxford, Oxford Univ. Press. Introduction It is no exaggeration to say that Capital

Investor Update & Capital Raise Presentation

Accessing the U.S. Market to Raise Capital

EvoLux Capital Raise Pitch Deck

Do Strict Capital Requirements Raise the Cost of Capital

Accounting. Raising capital How can businesses raise capital? Is there a difference in how incorporated and unincorporated businesses raise capital? Define

Mike Noel Raise Cash Private Capital Secrets

Mr Mattison 1st Capital Raise

Would Stricter Capital Requirements Raise the Cost of Capital

Tools to Raise Capital

Oxford Capital CIC Summary 2016

Would Stricter Capital Requirements Raise the Cost of ...people.stern.nyu.edu/jwurgler/papers/Bank Capital Regulation.pdf · Would Stricter Capital Requirements Raise the Cost of

Oxford Capital Group World Trade Center proposal

When & How to Raise Venture Capital

Raise Capital | Get Your Project Funded

Building a Pitch Deck to Raise Venture Capital

Prospect Capital Reports Capital Raise of Preferred Stock

How To Raise Capital: Understanding Your Funding Stack & Optimizing Your Fundraising Process Capital

Raise Capital NOW with Equity Crowdfunding - VLAB€¦ · possible for startups to raise much-needed capital through crowdsourcing from unaccredited investors. Groundbreaking regulation

Oxford Technology Venture Capital Trust Plc

The Easy Way to Raise Venture Capital - VCgate

CHAPTER 33 Stocks: Selling Ownership to Raise Capital

How to raise capital as a social entrepreneur?