Startup Fundraising 101Startups on Onevest have raised $80 million+ with our help

September 25

Meet Today’s Host

Shahab KavianiCo-Founder | CMO, Onevest

• 10+ years as a startup founder

• Previously co-founded CoFoundersLab and HyperOffice (exited)

• Raised over $800k – including a portion via equity crowdfunding

Agenda

1. Fundraising Sources

2. Key Terminology

3. Pros/Cons of taking outside investment

4. How do you decide how much $ to raise?

5. What do investors look for?

6. The JOBS Act & Equity Crowdfunding

Fundraising Sources

Friends and

Family

Accelerators

VC (Venture Capital)

Bootstrapping

Crowdfunding

Angels Customers

Where do entrepreneurs get money?

Kauffman Sketchbook – “Money Game” by Paul Kedrosky, Senior Fellow Kauffman Foundation: https://www.youtube.com/watch?v=U470xXKfDyE

Largest sources of capital for young companies in order:

Founder Savings

Credit Cards

Family & Friends

Banks

VC, Angels, Etc.

Sources: Investopedia.com, http://www.investopedia.com/terms FT.com, http://lexicon.ft.com/

Term Sheet

Cap Table Valuation

Convertible Note Dilution

CrowdfundingEquity vs. Donation

Common vs. Preferred Stock

Key Terminology

Have you ever tried raising $ for a startup?

YES NOor

How Long Does it Take to Raise $?It depends, but it’s usually a long process.

Source: http://danielodio.com/daniels-rule-of-10-angel-intros-1mm-raise-infographic

Nothing beats cash flow; if you don’t need $, don’t take it

Should I Take Outside Investment?

PROS CONS

Hire faster

Launch faster

Experiment with more things (marketing, partnerships, etc.)

Investors support as advisor(s)

Give up equity/ownership

Dilute yourself and your shareholders

More people to answer to: direction of company no

longer only up to you

How do I decide how much $ to raise?

*Source: http://www.techrepublic.com/article/the-dark-side-of-venture-capital-five-things-startups-need-to-know/

How much $ do you

need to hit certain

benchmarks

Two good methods

If no benchmark, good rule

of thumb: take amount it

takes to sustain operations

for next 18 months + 25-50%

for added flexibility

TRACTION

LARGE MARKET OPPORTUNITY

IDEA

COMPETITION

What do investors look for?

TEAM

Team Overview

High-level overview of your

companyProblem

How your startup solves the problem

Market Size Competition Traction

Financial Projections

The ASKHow much are you raising?

How will you use the $

Pitch Deck – What to IncludeIN

TR

OS

TAT

SF

INA

NC

IAL

You raised money...Now what?

Communicate with and update your investors

Focus on milestones

Celebrate! (and then get back to work!)

Are you familiar with the JOBS act?

YES NOor

JOBS Act Title II

Tell everyone you’re fundraising

TIME

JOBS Act Title III

Fundraise from everyone (not just accredited investors)

JOBS Act = New Opportunities

NOW FORTHCOMING

Smaller investment minimums allow more investors to participate

More investors = More strategic advisors with knowledge of/experience in your space

Promote your company to a larger pool of investors outside your personal network, saving time and effort

Pros of Equity Crowdfunding

1

2

3