Five random tips on Fundraising

24
The Best Advice you never got: Five random fundraising tips Fundraising | 101

Transcript of Five random tips on Fundraising

The Best Adviceyou never got:

Five random fundraising tips

Fundraising | 101

TM

Logistics Operations Made Easy

Fundraising: The Best Advice You Never Got

Wicked Wednesday, 25 Mar 2015 @ N-HouseShamir Rahim, Founder & CEO

We are the for Logistics companies.

Customer Relationship Management (CRM)

Logistics Operations Management

.com

TM

Because...

Logistics needshelp.

Why?

Investor Founder𝑅𝑎𝑖𝑠𝑒𝑑𝑐𝑎𝑝𝑖𝑡𝑎𝑙% 𝑜𝑓 𝑐𝑜𝑚𝑝𝑎𝑛𝑦

=¿ Post-money valuationEg. $700,000 for 35% of the company

$700,0000.35

=¿$2M Post-money valuationPre-money valuation = $2M - $700,000 = $1.3M Pre-funding = 1,000,000 shares in total Founder A = 500,000 shares ie. 50% of the startup

𝑥1,000,000+𝑥

=0.35

Solving for= 538,462 new shares to issuePost-funding = 1,538,462 shares Founder A = 500,000 shares ie. 32.4% of the startup

A

B

~

Bonus: Is there a ‘shortcut’ formula?

A typical ‘Captable’(aka Capitalization table):

Post-money ownership:

Fundraising | 101

When the funds wired

over

The Best Adviceyou never got:

Five random fundraising tips

Fundraising | 101

The Negotiation!!

Fundraising | 101

Good Advice:Look beyond valuation.

Better Advice:Assess value-add and networks.

Best Advice:Speak with portfolio founders.

#1

Fundraising | 101

Good Advice:Get out of the building.

Better Advice:Iterate MVP with customers.

Best Advice:Collect sales orders. Show them.

#2

Good Advice:It’s a process, not an event.

Better Advice:Socialize early.

Fundraising | 101

Best Advice:Get an awesome mentor.

Ask for intros.

#3

Good Advice:Raise money when you don’t need it.

Better Advice:At least 6 months before you run out.

Fundraising | 101

Best Advice:Bootstrap every last cent from Day 1.Double all time-to-money projections.

#4

Good Advice:Build a beautiful deck.

Better Advice:Craft a compelling story.

Fundraising | 101

Best Advice:Bring a customer into the room (or their signed sales orders).

#5

A quick word about the ‘Why’

It’s OK.Startup founders live here.

The ‘and more one thing…’

Why raise funds at all?

Shamir Rahim, CEO & Founder

Thank you!

“We keep trucking… epic”

TM

shamir[at]sypherlabs.como: +65 3152 1249