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FELLOWS CLASS #7: RAISING CAPITAL PART 3JANUARY 16TH, 2015

Monday, January 19, 15

• READINGS & VC MATH EXERCISE• RAISING CAPITAL PART 3: PITCHING INVESTORS• REAL WORLD PERSPECTIVE: BRIAN COHEN• HOMEWORK #3 PRESENTATIONS• QUESTIONS

IN TODAY’S CLASS...2

Monday, January 19, 15

RAISING CAPITAL: PART 33

PART 1: PART 2: PART 3:

FUNDRAISING OVERVIEW

VC MATH / DEAL

STRUCTURINGPITCHING INVESTORS

Monday, January 19, 15

ENTREPRENEURS NEED TO BE READY TO PITCH... ANYWHERE4

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WHAT’S MY POINT?

TRAIN YOURSELF TO TELL A CLEAR, CONCISE STORY.

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FINDING INVESTORS IS EASY...

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... BUT MAKE SURE THEY ARE THE RIGHT INVESTORS!7

WHAT STAGE DO THEY INVEST?

WHAT SIZE CHECKS DO THEY WRITE?

WHAT’S THEIR FOCUS / BACKGROUND?

WHO ELSE IS IN THEIR PORTFOLIO?

Monday, January 19, 15

FINDING THE RIGHT INVESTOR:8

• TIME MANAGEMENT• MORE EFFECTIVE / EFFICIENT OUTREACH• ASK FOR TARGETED INTRODUCTIONS• RECEPTIVITY INCREASES• DEMONSTRATES YOU DID YOUR HOMEWORK!

Monday, January 19, 15

WHAT TYPES OF ENTREPRENEURS DO INVESTORS WANT TO BACK?9

C A P A B L E

Monday, January 19, 15

WHAT TYPES OF ENTREPRENEURS DO INVESTORS WANT TO BACK?10

CA P A B L E

OACHABLE

UTHENTIC

ROFIT DRIVEN

CCOMPLISHEDUILDER

EADER

XPERT (DOMAIN & EXECUTION)Monday, January 19, 15

✓ NOT WHEN YOU’RE RUNNING OUT OF CASH!

✓ HAVE (IDEALLY) AT LEAST 4-6 MONTHS CASH FLOW AVAILABLE✓ BE BUILDING ON-GOING RELATIONSHIPS WITH INVESTORS✓ RAISE ENOUGH CAPITAL FOR AT LEAST 12 MONTHS

WHEN SHOULD YOU RAISE?11

FUNDRAISING CAN BECOME A FULL TIME JOB IN ITSELF!

“*Green Zone”Jan 6th-May 15th

Sept 8th-Oct 15th

“*Yellow Zone”May 16th-June 30th

Oct 16th-31st

“*Red Zone”July 1st-Sept 7thNov 1st-Jan 6th

http://www.bothsidesofthetable.com/2009/11/08/funding-season-ends-next-week/Monday, January 19, 15

WHAT TO PITCH12

• WHAT IS THE PROBLEM, INEFFICIENCY, OR CONSUMER PAIN POINT?• BUSINESS OVERVIEW• TEAM• MARKET SIZE (HOW BIG IS THE OPPORTUNITY, AND IS IT GROWING?)• WHAT IS YOUR SOLUTION? (YOUR PRODUCT OR SERVICE)• BUSINESS MODEL• WHO ARE YOUR CUSTOMERS? HAVE YOU VALIDATED THE NEED?• HOW ARE YOU GOING TO REACH / ACQUIRE THEM?• COMPETITIVE LANDSCAPE• WHY IS YOUR STARTUP UNIQUE / BETTER? WHATS DEFENSIBLE?• FINANCIAL PROJECTIONS• FUNDRAISING ASK• ROADMAP OF HOW THE FUNDS WILL BE USED

Monday, January 19, 15

REAL WORLD PERSPECTIVE13

BRIAN COHEN• CHAIRMAN OF NY ANGELS• 1ST INVESTOR IN PINTEREST• OVER 70+ ANGEL INVESTMENTS• AUTHOR, “WHAT EVERY ANGEL INVESTOR WANTS YOU TO KNOW”• FOUNDER AND CEO OF LAUNCH.IT, GOOD CAUSE COMMUNICATIONS

REAL WORLD PERSPECTIVE

Monday, January 19, 15

• NO OFFICE HOURS NEXT WEEK• NEXT CLASS: THURSDAY JANUARY 22ND • BE SURE YOUR READINGS ARE COMPLETE!• SEND ME YOUR TWEETABLE TRUTHS, OR INDUSTRY TOPICS TO DISCUSS• HOMEWORK #4: YOUR PITCH DECK- ASSIGNMENT TO COME

NEXT WEEK...14

Monday, January 19, 15

CONTACT:

JESSICA PELTZ, INVESTMENT DIRECTORJPELTZ@KBSP.VC

JOSH ENGROFF, MANAGING PARTNERJENGROFF@KBSP.VC

QUESTIONS?15

Monday, January 19, 15

Monday, January 19, 15