Lessons in FundingFrom a Startup CEO

Mike Malloy

Waveborn Sunglasses

Georgetown Alum

Agenda

• Waveborn Story

• Levels of Funding

• Investor Relationships

• Types of Investors and Investment Instruments

• Types of Pitch Meetings

• Questions for Investors

• Due Diligence Documents

• Crowdfunding 101

Levels of Fundraising

• Bootstrapping

• Friends, Family, and Fools

• Crowdfunding

• Angel Investors

• Equity Crowdfunding

• Banks

• Institutional VC Investors

• IPO

Investor Relationships

• Raising seed capital is relationship business for next 5-10 years

• Investors are betting on you, not the company

• No now is not no forever most likely to invest in the next round

• Ask for introductions to other investors

• Connect the dots make lines

• Under promise and over deliver

• Social proof of other investors

7 Types of Investors

• Connectors

• Product People

• Builders

• Smart Business People

• Domain Expert

• The Brand

• Filler

Types of Investment Instruments

• Debt

• Equity

• Convertible Notes

• Crowdfunding via Indiegogo or Kickstarter

• Equity Crowdfunding via OneVest

• Series A Preferred Stock

• Warrants from Banks

• M&A

• IPO

Types of Pitch Meetings

• Elevator pitch – 30 seconds

– Pitch by analogy and get them to ask a question

• Conversational pitch – 5-10 minutes

– Company storytelling to existing relationship

– Goal of meeting is to get the next meeting

• Full investment pitch – 1 hour

– 10 slides, 20 minutes, 30+ size font

– Clear investment ask at end with questions

Questions for Investors

• How often do you invest?

• What is your average check size?

• What is the range of funds you are considering investing in this round?

• How are you going to add strategic value?

• Who else in your network can add value?

• Do you do follow on investments?

Due Diligence Documents

• Executive Summary

• Pitch Deck

• Term Sheet

• Income Statement

• Balance Sheet

• Cash Flow Projections

Crowdfunding 101

Crowdfunding Best Practices

• 45 day campaign

• Start on Tuesday – end on Friday

• Set low goal and reach it quickly

• Build momentum towards stretch goals

• Video is most important feature

• Update emails weekly to engage supporters

Prep Work – 3 Months

• Secure pre-commits prior to launching and focus on huge Day One with momentum

• Define roles and time commitment on TEAM

Templates, Templates, Templates

• Google Docs are your best friend

• Email templates

• Facebook posts to copy and paste

• Click to Tweet links

• Social sharing page for supporters to get all the text needed to share, share, share!

• Contactually CRM

Tiered Contact Lists

• 1 – Key influencers, large network, high net worth, focus on referrals

• 2 – Friends and family who have supported you on the journey, focus on pre-commit on Day One of campaign

• 3 – Every other person you have ever met, focus on getting engagement

Use These Tools

• Breevy (PC) | TextExpander (Mac)– Camp;

– http://bit.ly/waveborncampaign

– https://www.indiegogo.com/projects/waveborn-shades-that-give-sight/x/2385224

• Bit.ly Links

• Google Docs

• ToutApp

• Contactually

Press Kits

• http://os-fashion.com/press-kit-freestyle-conference-dc-2014-2/

• http://wiki.waveborn.com/campaign/press-kit

• FAQs (post on campaign page, too!)

Waveborn Contact Info

Waveborn Sunglasses: http://www.waveborn.com

Wholesale: http://shop.waveborn.com/wholesale

Customer Service: +1-844-FIND-SUN waveborn@custsvc.net

Mike Malloy, CEO: 310-499-6295

malloy@waveborn.com

www.linkedin.com/in/mwmalloy

@waveborn

Appendix

Additional Content

• https://www.linkedin.com/today/post/article/20140827212854-42595648-how-to-select-the-best-investors-for-your-startup

• http://tech.co/close-fundraising-round-2014-10

• http://tinyurl.com/becomingsogood

Successful Crowdfunding Campaigns

• SOMA Water - $100k in 10 days

• Nice Laundry

• Waveborn Sunglasses

• Eone – Watch for the Blind

• iJUMP – Smartphone Battery Booster