So you want capital for your startup or small business, eh?

Aghhahaha…sucka..

Startups are hard.

Startups are really hard.

Startups are heartbreaking.

Startups are soul crushing.

Startups are life shortening.

fact:this is not reality.

funding myths about startups and small businesses

1. Startups cost nothing to build2. Startups get funded on a napkin 3. A good idea wins every time

myth #1: startups are cheap to build

reality:lean or not, it costs money to build

something significant.savings do run out.

stuff that cost MONEY

• Hiring amazing people – and you need A level amazing people in startups (they like to be paid even if they believe in you)

• Infrastructure – yes. It’s cheaper than it was, but those EC2 bills still pull from your bank

• Marketing – you can do a lot of social media for free in the beginning, but there is a bunch of noise to weed through today

• Funding – yes. It cost money to make money, it takes your time and cost you money to meet with the right people that will fund your business.

as if you didn’t know this

fact:4 out of 5 people who use the phrase “it’s

cheap to build a startup” have never built a startup (and probably never will)… the remainder are independently wealthy

how to pitch:

1. Know that you will be rejected2. You will underestimate the number of times

you will be rejected and how long it will take you to raise $.

3. Ask rejecters for feedback (Real feedback)4. Ignore most of said feedback*5. Seek mentors and allies (note: most

important point of this entire presentation)* Knowing what to ignore is not easy

fact: A Venture Capitalist looks at 2000 deals a year.

fact: A Venture Capitalist looks at 2000 deals a year.

A Venture Capitalist Reads the first two paragraphs of the executive summary and reviews the financials (Aka

EBITDA)

Fact: A Venture Capitalist looks at 2000 deals a year.

A Venture Capitalist Reads the first two paragraphs of the executive summary and reviews the

financials (Aka EBITDA)The ones that fit - get set a side- the rest are

thrown into a pile, never to be looked at again.

fact: A Venture Capitalist looks at 2000 deals a year.

A Venture Capitalist Reads the first two paragraphs of the executive summary and reviews the

financials (Aka EBITDA)The ones that fit - get set a side - the rest are

thrown into a pile, never to be looked at again. 50 receive Due diligence: < 10 are invested in

fact: A Venture Capitalist looks at 2000 deals a year.

A Venture Capitalist Reads the first two paragraphs of the executive summary and reviews the

financials (Aka EBITDA)The ones that fit - get set a side - the rest are

thrown into a pile, never to be looked at again. 50 receive Due diligence: < 10 are invested in

“Many quality deals…but we’re not going to do them. They’re just not ‘Right’ for us”

common VC rejections

• “we think you are too early for us”• “we have too many deals in our pipeline”• “we don’t understand the market”• “we’d like to see some local investment”• “you’re raising too much”• “you’re raising too little”• “if only you did a + b, we’d be a better fit…

“We’re just not that into you”

conviction

more funding ideas

• Friends & Family: your network is stronger than you know. (We are doing this now)

• Hold a fundraiser: make it awesome. (We are combining this with F&F)

• Sell your stuff on eBay: It’s a short term sacrifice.• Make money in your free time: Mowing lawns?

Delivering pizza?• Hire a Grant Application specialist: they often

work off of commission and there are small biz grants

myth #2: Startups are funded on a napkin

reality:Angels and VC’s: 15-40+ Page Business Plan

Regulation A: 35-60+ Page Business PlanRegulation D: 35-60+ Page Business PlanCrowdfunding: 4-40+ Page Business Plan

myth #3:

A good idea wins every time

slightly closer to the truthA good idea, good execution, good timing,

perseverance and relentless sickening work ethic will win.

reality:

Startups and small business owners, run businesses (duh)

reality:

Startups and small business owners, run businesses (duh)

Funding is limited by network: Unlikely to connect with appropriate advisors and investors

reality:

Startups and small business owners, run businesses (duh)

Funding is limited by network: Unlikely to connect with appropriate advisors and investors

Raising Funds: Uncertainty of time, outcome, and expense

fact:It takes 3 months to file or prepare for fund

raising

fact:It takes 3 months to file or prepare for fund

raisingFund raising can take 6 months to 2 years for

ONE round

There is nothing Fair about being an entrepreneur

fact: YOU build the future.

“The best way to predict the future is to invent it.” –Alan Kay

Fact:Entrepreneurs are CRAZY

Because without us crazy, delusional people who do this the world would be a boring,

stagnant place.

Both brilliant and both contributed so much to science

Tesla died broke Edison died rich

What of those with better ideas who lacked the resources and

weren’t heard at all?

what we need to change

1. Encourage/educate more entrepreneurs and family & friends on how to invest in startups

2. Think Tanks (BCI TT coming soon). Work together (Globally). Create Communities (Crowdfunding!)

3. Create better entrepreneurial programs for Universities

4. Host more events: showcasing startups, providing education, and to find investors

Bridge Capital InvestmentsWe are here to help

We are passionate entrepreneurs that know how to provide the foundation (a community,

capital and business development tools) to build successful companies from the ground up

Reach out to us: Kyle.Benson@bridgecapitalinvestments.comBen.Minges@bridgecapitalinvestments.com